The Freddie Mac Multifamily Apartment Investment Market Index (AIMI) continued its upward trend during the third quarter, rising 5.3% nationwide quarter over quarter and 9.2% year over year.
The index rose in all markets for the quarter, unlike during the second quarter when AIMI rose nationally but metro-level performance was mixed, the agency said. Annual increases were particularly strong on the West Coast, with Oakland up 17.3% and San Francisco up 15.7% year over year. Mountain West markets turned in a strong performance as well, with Denver rising 16.1% year over year.
“AIMI increased as mortgage rates fell, decreasing the cost of financing,” said Sara Hoffmann, senior director of multifamily research at Freddie Mac. “The third quarter of 2024 saw interest rates decline, and an annual increase in net operating income for the nation. When combined with the decline in property prices, this improved conditions for investment in the apartment market.”
Recommended For You
Freddie Mac reported that quarter-over-quarter net operating income performance was mixed, with the nation and 18 metros experiencing growth and six markets experiencing decreases while Las Vegas was flat. For the year, the nation and 11 markets had NOI growth while 14 markets had NOI decreases.
Property prices were also mixed for the quarter, dropping in the nation and in 17 markets but growing in seven markets. Property prices in Boston were flat. For the year, property prices declined in the nation and in all markets, although the price drop was not as severe as during the second quarter, said Freddie Mac. Still, five markets contracted by more than 10%.
Mortgage rates decreased 35 basis points for the quarter, the second-largest quarterly decline in the past five years. For the year, mortgage rates decreased by 12 bps, marking the first annual decline since the third quarter of 2021.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
