Freddie Mac's Multifamily Apartment Investment Market Index (AIMI) fell in all markets in 3Q2023 – a sign that the relative value of investing is lower now.

The AIMI measures how the relative value of investing in multifamily properties changes over time, based on current mortgage rates, property prices and rental rates. In the third quarter, it fell to 107.1 throughout the nation, impacting all 25 regional markets tracked. The decline follows two previous quarters when the index rose, indicating that the relative value of investing at that time was higher.

Freddie Mac attributed the 2.1% drop in the index in 3Q to higher interest rates. Taking the prior 12 months into account, however, the index was up 0.3% — a "notable" increase. The company attributed it to a significant drop in property prices that offset the effect of markedly higher mortgage rates.