Freddie Mac (OTCQB: FMCC) announced that its Multifamily Apartment Investment Market Index (AIMI) decreased in the fourth quarter of 2023 but increased over the full year.
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 – Freddie Mac attributed the downturn to his mortgage rates and a decrease in NOI in the nation and in all markets. Property prices dropped in the nation and in all markets except for New York, which experienced a small gain of 0.2% over the quarter.
Despite the fourth quarter decline, AIMI finished up for the year nationally and in most regional markets.
“The end of 2023 was a tale of two directions for AIMI,” said Sara Hoffmann, senior director of Multifamily Research at Freddie Mac. “The index finished 2023 up overall for the year, but fourth quarter was down across the board. The market continues to adjust to the new reality of higher interest rates, which were offset by a steep contraction in property prices, while NOI was virtually flat when we look at 2023 as a whole. All in all, AIMI suggests that investors are paying less per dollar of property income compared with one year ago.”
