Strong multifamily investment environment continues as Freddie Mac’s AIMI bounces back in Q2

Multifamily Apartment Investment Market Index® (AIMI®) turned positive in the second quarter of 2021 as growing net operating incomes (NOIs) and low interest rates bolstered the investment environment for multifamily properties. Overall, the index is up by 0.7 percent quarterly and 2.6 percent annually after a slight decline in the first quarter, with most markets in positive territory.  Multifamily mortgage rates increased during the quarter by five basis points, the first quarterly increase since fourth quarter 2018, but are still down 37 basis points annually.

“This quarter's AIMI shows a positive environment for multifamily investors in most markets, including those hit hard by the pandemic,” said Steve Guggenmos, vice president of Freddie Mac Multifamily Research & Modeling. “The low-rate environment and strong net operating incomes offset a slight rise in mortgage rates, indicating a healthy market going into the second half of 2021.