The Freddie Mac Multifamily Apartment Investment Market Index fell at the end of last year, signaling that it may become increasingly difficult to find multifamily investment opportunities. The index fell 4.8% in the fourth quarter of 2021 and was down 2.4% year-over-year.

AIMI is an data tool from Freddie Mac that analyzes multifamily rental income growth, property price growth and mortgage rates to measure investment conditions. The positive annual growth equates to a healthy environment for multifamily investment, despite the pandemic and market dislocation.

The combination of record pricing appreciation, rising mortgage rates and increasing NOI drove the decrease in the index. Apartment prices appreciated nearly 20% in the last year, the biggest growth spurt in the history of the index, while mortgage rates also increase six basis points. These two factors have offset strong NOI growth, which grew 17.7%, according to the index.