January 2014

Returns from multifamily property investments fell in the third quarter of 2013, according to the National Council of Real Estate Fiduciaries. Returns from commercial real estate as a whole, however, increased to 2.57 percent.

Click here for multifamily market statistics featured in the January ’14 issue of MHN.

Investment returns on multifamily fell from 2.50 to 2.48 in the third quarter of 2013, according to the National Council of Real Estate Fiduciaries (NCREIF).

Returns from commercial real estate as a whole, however, increased to 2.57 percent.

Multifamily loan originations index fell 20 percent from 224 to 187 in the third quarter, according to Mortgage Bankers Association (MBA). The index is still higher than the 182 index in the third quarter 2012.

Data from the National Association of Home Builders’ (NAHB) Multifamily Production Index (MPI), which measures multifamily builder sentiment and tracks housing starts in buildings with five or more units, fell by seven points in the third quarter of 2013 and now stands at 54.

Despite the quarter-over-quarter decline, this is the seventh consecutive quarter that the index has exceeded 50. The index of multifamily builder sentiment is now 38 points above the trough that was reached in the third quarter of 2008, according to NAHB.