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.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.