Freddie Mac’s Multifamily Investment Market Index continued to decline in the third quarter | Jobs Vox


MCLEAN, Va., December 15, 2022 (GLOBE NEWSWIRE) — The Freddie Mac (OTCQB: FMCC) Multifamily Housing Investment Market Index® (AIMI®) reported a quarterly decline of 5.4% in the third quarter of 2022, while the index declined by 23.5% year over year. AIMI declined nationwide and in all 25 markets on both a quarterly and annual basis, driven primarily by record mortgage rate increases.

“Rising mortgage rates continue to depress the housing investment market index,” it said Steve GuguenmosVice President of Research and Modeling at Freddie Mac Multifamily. “Property prices and net operating income, while positive, are now slowing, further exacerbating the decline. Multifamily fundamentals remain consistent and strong, but there is no doubt that higher rates are having an impact. “

In the quarter, AIMI decreased in the country and in all 25 markets. The main driver of the quarterly decline was higher mortgage rates.

  • National NOI growth was 2.0% and all but two metropolitan areas experienced growth. was the fastest growing San Diego while at 4.5% Phoenix and Las Vegas There was a decrease in NOI of -1.3% and -0.7% respectively.
  • Property prices rose in the country and slightly more than half of the markets. Price growth slowed significantly from last quarter and is now below the long-term average.
  • Mortgage rates rose 58 bps – the biggest quarterly increase in AIMI’s entire history going back to 2000.

During the year, AIMI declined nationally and in all 25 markets, driven by large increases in mortgage rates. The state and 20 metros experienced the largest annual AIMI decline since the series began in 2000.

  • NOI growth was generally positive, although it is now slowing, but still exceeded 10% in more than half of the metros. Miami It led with an annual growth of 21.6%.
  • Real estate prices have increased in the country and in all markets. Like NOI growth, real estate price growth is slowing compared to last quarter. Nine metros grew by less than 10%, while four metros saw growth of less than 3%.
  • Mortgage rates rose by 194 bps – the largest annual increase in AIMI’s entire history since 2000.

In addition to the national and local values, a sensitivity table is available that shows how the index value is adjusted based on changes in certain key variables. More information about AIMI is on the Freddie Mac Multifamily website, including frequently asked questions 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 the investment conditions of the multifamily market. An increase in the AIMI from one quarter to the next implies a more favorable environment for multifamily investment opportunities, while a decrease indicates that attractive investment opportunities are becoming more difficult to find compared to the previous period.

Freddie Mac Making a home affordable for millions of families and individuals by providing mortgage capital to lenders. Since our creation Congress In 1970, we made housing more affordable and accessible to homebuyers and renters nationwide. We’re building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and the Freddie Mac blog at FreddieMac.com/blog.

Media Contacts:
Mike Moros
(703) 918-5851
[email protected]

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Source: Freddie Mac

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