Freddie Mac said its Multifamily Apartment or condo Financial Investment Market Index (AIMI) climbed by 0.5% in the 4th quarter after rebounding in Q3. The marginal development shows a quarter where falling home loan rates balance out negative NOI and also property rate development, both driven in part by the COVID-19 pandemic.
“For many years, AIMI stayed favorable nationally and also in a lot of markets, but some regional markets really felt the effect of the pandemic more really as well as experienced significant tightenings,” claimed Steve Guggenmos, VP of Freddie Mac Multifamily Research as well as Modeling.
Over the quarter, AIMI enhanced in the nation as well as in a lot of markets. Sixteen markets experienced quarterly development, while nine metros experienced quarterly tightening.
Alternatively, the majority of metro areas experienced a decline in NOI. The country as well as 16 markets experienced quarterly NOI contraction, while 9 cities experienced favorable NOI growth. As in Q3, New York and San Francisco were specifically noticable, going down– 6.2% and -9.4%, respectively.
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Paul Bubny acts as Senior Material Director for Connect Commercial Property, a function to which he brings 13-plus years’ experience covering the commercial real estate sector as well as 30-plus years in business-to-business journalism.
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Published at Fri, 19 Mar 2021 04:09:43 +0000