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Multifamily Stock Index Rebounded Last Month
The stocks of publicly traded companies primarily involved in the development and ownership of multifamily housing bounced back strongly in September, after taking a dip in August, pushing the NAHB Multifamily Stock Index (MFSI) to its second-highest level ever.
"The demand for condominiums remains strong and demand for market-rate rental apartments is also on the upswing," said Ron Terwilliger, chief executive officer of Trammell Crow Residential. "The health of apartment company stocks on Wall Street is another sign of the overall strength of the housing market right now."
The NAHB index tracks the total returns (including capital gains and dividends) of 27 publicly traded firms.
In September, the MFSI rose by 48 points to 2,554, or almost 2%. The index was about 26% higher than a year earlier, when it stood at 2,030. By comparison, the S&P 500 (with dividends reinvested) rose by less than 1% in September and its value was roughly 12.5% higher than 12 months earlier.
The multifamily index is currently outpacing the S&P 500 by more than 130%, according to Elliot Eisenberg, a housing policy economist at NAHB and creator of the MFSI. "Despite the consistently strong showing of the S&P 500 over the past year, the MFSI continues to outperform it," he noted.
For more information, e-mail Ann Marie Moriarty, or call her at 800-368-5242 x8350.
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