Multifamily Stock Index Falls Slightly, but S&P 500 Falls Further
During the month of October, the MFSI declined by 22 points, or almost one and one-quarter percent. With this decrease, the MFSI is at its third-highest reading of all time—the record was set just three months ago—and is a full 17% higher than it was last year at this time. During the past month, the S&P 500 with dividends fell by almost 2%, yet still finds itself almost nine full percentage points higher than it was one year ago. Because the MFSI eased by less than the S&P 500 with dividends during October, the performance gap—or percentage difference—between the two indexes widened from 131% in September to 132% in October, which is just 10 percentage points lower than the high-water mark of 142% set in July of this year, and is the second-highest recorded level ever.

Despite the very strong 48% rise in the S&P 500 since its low in late 2002, the MFSI has risen a staggering 77% during the same 37 months. In addition, the MFSI continues to dramatically outperform the S&P 500 over longer time periods including the past four, five and six years. Since December 1998, the MFSI has risen by a whopping 152% while the S&P 500 with dividends reinvested has gained a meager 8.9%.

During the month of June, the price-to-earnings ratio (P/E) of the MFSI eased slightly to 17.22  while the dividend yield, defined as the total cash dividend payments divided by the current stock price, which moves in the opposite direction, increased and now stands at 5.59%. The MFSI is an index of 26 publicly traded US headquartered firms, including 22 REITs, principally involved in multifamily ownership and management. [ return to top ]