“The extraordinary increase in mortgage rates drove the decline in AIMI as 2022 concluded,” said Steve Guggenmos, vice president of research and modeling at Freddie Mac Multifamily. “Rising rates and slowing property cash flows impacted investment conditions, despite the fact that multifamily fundamentals that drive property cash flows are not expected to weaken significantly.”
Property price performance was mixed but generally positive, with a net operating income (NOI) growth rate of 6.3% nationwide. Las Vegas and Phoenix experienced declines in NOI growth in Q4, while NOI performance in Miami, New York, and San Diego exceeded 10%.
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