MFSI Back to Levels Seen in 2008
During the month of September, the MFSI rose by 276 points, its seventh-best monthly performance ever. With this monthly increase, the MFSI is now down slightly more than 24% over the past 12 months, yet its 12-month performance has been negative for 25 of the past 26 months— its worst period of performance ever. The September increase of slightly more than 13% takes the MFSI back to a level last seen in late 2008—not even 12 months ago.

Despite this most recent dramatic rise, the MFSI still finds itself 1,511 points—or almost 40%—off its all-time high reached in January 2007. During the past month, the value of the S&P 500 with dividends reinvested increased by slightly less than 4% and it now finds itself down slightly less than 7% over the past 12 months, the first time it has been in negative year-over-year territory for 21 straight months in well over six years.

¹ For initial article discussing the MFSI in detail see NAHB Multifamily Market Outlook, January 2002.
2 % difference is defined as (MFSI minus S&P 500 with dividends)/S&P 500 with dividends. 

Because the MFSI increased by about 13% while the MFSI rose by a bit less than 4%—more than three times as much—during the month of Sept., the performance gap—or percentage difference—between the two indexes increased from 106% last month to 125%. Since its cyclical low set in Oct. 2002, the S&P 500 with dividends has increased by 50%, while the MFSI has increased by a substantially better 74% during the same 84-month time period. In addition, the MFSI continues to dramatically outperform the S&P 500 over longer time periods, including the past 10, 11 and 12 years. Since Dec. 1998, the MFSI has risen by 134% while the S&P 500 with dividends reinvested has risen by almost 4%.

During the month of August, the price-to-earnings ratio (P/E) of the MFSI rose and now stands at 17.38, 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 7.58%. The MFSI is an index of 18 publicly traded US headquartered firms, including 16 REITs, principally involved in multifamily ownership and management. [ return to top ]