Mutifamily Stock Index Shatters Previous Record High
During the month of August, NAHB's Multifamily Stock Index rose by 64 points, or 3.86%, the sixth straight monthly increase. With this sizable gain, the MFSI has established another all-time high of 1,724.64, or 64 points higher than the previous high of 1,660 set just one month ago. It is now 11.30% higher than 12 months ago. Since the end of May, the S&P 500 with dividends rose 15.39%, and is now 12.07% higher than 12 months ago — a performance almost one percentage point better than the MFSI.

Because the MFSI increased by 3.86% in August while the S&P 500 with dividends went up only half as much, the percentage difference between the two indices widened from 93% to 97%, a level surpassed on only three previous occassions. Despite a very strong performance by the S&P 500 over the past six months, the MFSI continues to outperform the S&P 500 over the past two-, three-, and four-year time time periods.

Since December 1998, the MFSI has risen by more than 72% while the S&P 500 with dividends has fallen by 18%. During August, the price-to-earnings ratio (P/E) of the MFSI rose from 18.96 to 19.09, while the dividend yield, defined as the total cash dividend payments divided by the current stock price, fell from 6.71% to 6.50%. 

The MFSI is an index of 28 publicly traded US headquartered firms principally involved in multifamily ownership and management. [ return to top ]