With mortgage rates persistently high, AIMI fell nationally and in all 25 regional markets measured for the fourth quarter of 2023, as did net operating income (NOI) over the same period. Despite the fourth quarter dip, AIMI finished 2023 up for the year nationally and in the majority of regional markets.
“The end of 2023 was a tale of two directions for AIMI,” said
Mortgage rates increased by 72 basis points in 2023, high by historical standards but the smallest annual increase since the first quarter of 2022. NOI results were mixed for 2023, with 10 markets experiencing growth and 14 markets experiencing declining NOI, while the nation and one market (
The trend downward was pronounced in the fourth quarter of 2023, with a decrease in NOI in the nation and in all markets. NOI contracted between -0.2% (
In addition to national and local values, a sensitivity table is available that captures how the index value adjusts based on changes in certain underlying variables. Additional information about AIMI is on the Freddie Mac Multifamily website, including FAQs and a video.
AIMI is an analytical tool that combines multifamily rental income growth, property price growth and mortgage rates to provide a single Index that measures multifamily market investment conditions. A rise in AIMI from one quarter to the next implies an increasingly favorable environment for multifamily investment opportunities, while a decline suggests that attractive investment opportunities are becoming more difficult to find compared with the prior period.
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