Freddie Mac’s Multifamily Apartment Investment Market Index (AIMI) increased 8.7% quarterly during 2024’s first quarter, bouncing back sharply from the deep decline in the previous three-month period.

The AIMI’s quarter-over-quarter pick-up was broad-based, with all 25 regional markets tracked by Freddie Mac seeing a rise in the index. Annually, the index is up 8.1%, with the gains signaling improved investment conditions to kick off the year.

“A decline in property prices and interest rates contributed to the AIMI’s strong start in the first quarter of the year,” said Sara Hoffmann, director of Multifamily Research at Freddie Mac. “The rising index across the board this quarter is especially notable and was aided by the largest quarterly decline in mortgage rates since 2010.”

Net operating income (NOI) for apartment properties was mixed, staying essentially flat in the country at large during the quarter. Five metros saw growth of at least 1%, while four metros saw NOI fell by at least 1%.

Year over year, NOI increased nationwide. Eleven metros tracked by Freddie saw an NOI uptick, while NOI dropped annually in 14 markets.

Property prices fell nationwide and in every market tracked by Freddie. Prices saw the smallest decline in Chicago (down 0.4% in the quarter), while they fell by the largest percentage in Denver (down 3.8%). On a year-over-year basis, property prices fell in the country and in every tracked market; 10 markets saw prices tumble by more than 10%.