MFSI Rises This Month, But the Year is Its Worst Ever
During the month of March, the MFSI rose by 126 points. With this sizable monthly increase, the MFSI now is down slightly more than 53% over the past 12 months, and its 12-month performance has been negative for 20 of the past 21 months—its worst performance ever.

The March increase of about 10% returns the MFSI to a level last seen in Early 2003—well over six years ago. Moreover, with this latest rise, the MFSI finds itself 2,465 points—or almost 64%—off its all-time high reached in January 2007. During the past month, the value of the S&P 500 with dividends reinvested jumped by slightly less than 9% and now finds itself down slightly more than 38% over the past 12 months, the first time it has been in negative territory for 15 straight months year-over-year in well over six years. Because the S&P 500 with dividends increased by almost 9% while the MFSI rose by over 10%—or about 10% more that the S&P did—during the month of March, the performance gap, or percentage difference, between the two indexes increased from 77% last month to 79%.

For initial article discussing the MFSI in detail see NAHB Multifamily Market Outlook, January 2002. Percent difference is defined as (MFSI minus S&P 500 with dividends)/S&P 500 with dividends.  

Since its cyclical low set in October 2002, the S&P 500 with dividends has increased by 11%, while the MFSI has increased by a nearly identical 3% during the same 76-month time period. However, the MFSI continues to dramatically outperform the S&P 500 over longer time periods including the past five, six and seven years.Since December 1998, the MFSI has risen by a strong 38% while the S&P 500 with dividends reinvested has declined by slightly more than 22%. During the month of March the price-to-earnings ratio (P/E) of the MFSI rose and now stands at 5.52 while the dividend yield, defined as the total cash dividend payments divided by the current stock price, and which moves in the opposite direction, declined to 16.00%. The MFSI is an index of 19 publicly traded US headquartered firms, including 16 REITs, principally involved in multifamily ownership and management. [ return to top ]