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Freddie Mac Launches Multifamily Index for Investors

McLEAN, VA—The index captures both prices and NOI to show investors the relative value of an investment at any given point in time, Steven Guggenmos tells GlobeSt.com's Erika Morphy.

Freddie Mac headquarters Freddie Mac headquarters

McLEAN, VA—Freddie Mac has debuted a multifamily index that measures how the relative value of investing in multifamily properties changes over time both nationally, as well as in certain markets.

The Multifamily Apartment Investment Market Index, or AIMI, combines of three measurements — rental income, multifamily property price growth and multifamily mortgage rates — to create a single number that represents the relative value of investing in the multifamily sector at that point in time.  Specifically, the rental income is estimated based on Axiometrics rent and vacancy data. Property price growth is estimated based on Real Capital Analytics Commercial Property Price Index and National Council of Real Estate Investment Fiduciaries Property Index Returns. Multifamily mortgage rates are compiled from the American Council of Life Insurers.

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Erika Morphy

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

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