Multifamily Stock Index Shows Almost Three Times the S&P 500's Annual Gain
During the month of May, the MFSI increased by 76 points, or almost three-and-a-half percent. With this sizable increase, the MFSI is at its second highest reading of all time, and just 81 points off its all-time high set five short months ago. With this most recent rise, the MFSI now finds itself almost 25% higher than it was just 12 months ago. During the past month, the S&P 500 with dividends also rose by almost 3.5 %, and is now almost 8.5% higher than it was 12 months ago. Because the MFSI and the S&P 500 with dividends reinvested increased by about the same amount during May, the performance gap—or percentage difference—between the two indexes remained unchanged from the 116% reported in April, which is just 7 percentage points below the high-water mark set in December 2004.

Despite the very strong 47.3% rise in the S&P 500 since its most recent low in early 2003, the MFSI has risen a staggering 65% during the same 27 months. In addition, the MFSI continues to dramatically outperform the S&P 500 over even longer time periods including the past three, four, five and six years. Since December 1998, the MFSI has risen by 131% while the S&P 500 with dividends reinvested has gained only 6.7%. 

During the month of May, the price-to-earnings ratio (P/E) of the MFSI declined to 18.45, while the dividend yield, defined as the total cash dividend payments divided by the current stock price, rose slightly and now stands at 5.62%. The MFSI is an index of 27 publicly traded US headquartered firms, including 23 REITs, principally involved in multifamily ownership and management. [ return to top ]