Multifamily Stock Index Jumps Again in October
Apparently buoyed by a positive outlook for the rental apartment market, investors’ confidence soared last month in publicly held firms whose primary business involves apartments and condos, according to the latest NAHB Multifamily Stock Index (MFSI), released on Nov. 17.
“A good economy that is creating jobs is good for the rental apartment market” said David Seiders, NAHB’s chief economist, who added that the multifamily rental market is also benefiting from a tight supply.
“In the past two years, so many apartments were converted to condominiums that the number of units in the rental pool significantly decreased in places like Florida and California,” Seiders said. “So while there is softness in the condo market right now, multifamily housing in general is still an attractive asset class compared to other types of investments.”
The index tracks the total returns (including capital gains and dividends) of 24 publicly traded firms including 20 Real Estate Investment Trusts (REITs) principally involved in owning, developing and managing multifamily housing. In October, the MFSI gained just shy of 277 points — a little more than 8% — to reach an index value of 3,648, up from 3,371 the month before, and more than 44% higher than a year ago.
In comparison, the S&P 500 with dividends reinvested gained 3.25% in October and 17% higher than it was a year ago.
The MFSI appears monthly in NAHB's electronic newsletter Multifamily Market Outlook. For more information about NAHB Multifamily, click here.
For more information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350.