“The low-rate environment and reliable net operating incomes are propelling the market forward,” said Steve Guggenmos, vice president of Freddie Mac Multifamily Research & Modeling. “With a healthy level of demand and enthusiasm around the reliable asset class, growing property values continue to be the limiting factor in the index.”
The report also showed that property prices were on the rise in 22 of 25 markets. New York and San Francisco continued to experience declines, down to -2.2% and -1.1% over the quarter, respectively. Meanwhile, prices in Los Angeles contracted very slightly at -0.1%.