Keepin' It Real 

Economics, Housing, & Commercial Real Estate Analysis

Apartment REITs
Data Center REITs
Mall REITs
Net Lease REITs
Hotel REITs
Single Family Rental REITs
Mobile Home REITs
Housing100logo.png
ETF express.png
  • Alex Pettee, CFA

Daily Recap

  • U.S. equity markets finished broadly lower on another volatile week, pressured by "supreme uncertainty" amid a contentious U.S. election season and lingering coronavirus concerns as we enter the colder months.

  • Declining for the fourth-straight week following a six-week winning streak, the S&P 500 dipped another 0.6% this week and is now roughly 8% below its all-time highs set last month.

  • This "supreme uncertainty" weighed on real estate equities and other economically-sensitive sectors this week. Equity REITs finished lower by 3.1% this week with 17 of 18 property sectors in negative territory.

  • New Home Sales topped estimates, surging 43% in August from last year to the highest annual rate since 2006, another sign that the housing industry continues to lead the economic recovery.

  • While the housing industry rebound has shown continued resilience, there are signs that the rebound in labor markets may be losing some steam ahead of a critical week of employment data - the final jobs report before Election Day.

Click Here to Read the Report on Seeking Alpha!


Disclosure: A complete list of holdings and Real Estate and Housing Index definitions and holdings are available at HoyaCapital.com. Hoya Capital Real Estate advises an Exchange Traded Fund listed on the NYSE. Hoya Capital is long all components in the Hoya Capital Housing 100 Index.

Additional Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.

Daily Recap

  • U.S. equity markets rallied Friday, but not enough to prevent a fourth-straight week of declines for the S&P 500. Coronavirus concerns and stalled stimulus negotiations continue to weigh on investor sentiment.

  • Ending the week lower by roughly 0.6%, the S&P 500 finished higher by 1.6% today while the tech-heavy Nasdaq 100 jumped 2.3% to snap a three-week losing streak.

  • Real estate equities were among the leaders today with the broad-based Equity REIT ETF (VNQ) finishing higher by 2.0% today all 18 property sectors in positive territory.

  • Glimmers of hope for another round of fiscal stimulus, along with better-than-expected housing data helped to fuel a late-week rebound that pulled the Nasdaq out of "correction territory."

  • NAREIT released its monthly Rent Collection Survey yesterday which showed continued improvement across the surveyed sectors. Rent collection among net lease REITs, for example, has improved from around 70% in April to 95% in September.

Real Estate Daily Recap

U.S. equity markets rallied Friday, but not enough to prevent a fourth-straight week of declines for the S&P 500. Coronavirus concerns and stalled stimulus negotiations continue to weigh on investor sentiment. Ending the week lower by roughly 0.6%, the S&P 500 ETF (SPY) finished higher by 1.6% today while the tech-heavy Nasdaq 100 (QQQ) jumped 2.3% to snap a three-week losing streak. Real estate equities were among the leaders today with the broad-based Equity REIT ETF (VNQ) finishing higher by 2.0% today all 18 property sectors in positive territory. The Mortgage REIT ETF (REM) gained 2.5%. 

Volatility has picked up again over the last month following a late-summer lull, fueled by concerns over global economic growth amid a renewed uptick in coronavirus cases in many European countries. Glimmers of hope for another round of fiscal stimulus helped to fuel a late-week rebound. 10 of the 11 GICS equity sectors finished higher on the day, led by the Technology (XLK), Commerical Real Estate (XLRE), and Utilities (XLU) sectors. Residential REITs led the way for the Hoya Capital Housing Index despite a pullback from the Homebuilders. We'll have a full recap of this week's performance in our Real Estate Weekly Outlook report published tomorrow morning. 

Today, we published Homebuilders: A V-Shaped Vendetta. An antihero of the prior financial crisis, Homebuilders have seemingly been on a vendetta over the last six months, asserting themselves as the unexpected leader of the early post-pandemic recovery. Homebuilders were slammed at the outset of the pandemic on fears that a coronavirus-induced recession could inflame a repeat of the Great Financial Crisis for the critical U.S. housing. Instead, the U.S. housing industry has roared back to life in recent months. New Home Sales, Existing Home Sales, and Home Prices have all seen a substantial reacceleration this year. The sharp rebound in housing market activity has been aided by longer-term macroeconomic trends of favorable millennial-led demographics, historically low housing supply, and record low mortgage rates.

Homebuilder earnings have been impressive nearly across-the-board since the start of the pandemic as most of the largest builders entered this period of uncertainty with a full head of steam. Commentary on earnings calls has been decidedly positive as recently-reporting builders - KB Home and Lennar - remarked that momentum has continued and even accelerated in late August and into early September, bucking the normal seasonal demand trends. Despite a weak start to Q2 in April and into May, homebuilders still reported a stellar 20% jump in net order growth, the most closely watched earnings metric, and a leading indicator of future revenue and home deliveries.

Housing remains an “unloved” sector despite the compelling long-term tailwinds at its back. Homebuilders trade at deeply discounted valuations to the S&P 500 despite their stellar growth rates. Despite leading the early stages of the post-pandemic economic rebound, homebuilders remain a relatively unloved sector, still trading at deep discounts to historical and market multiples. Homebuilders currently trade at an average trailing twelve-month Price to Earnings ratio of 12.1x, far below the roughly 28x trailing P/E multiple on the S&P 500. That valuation gap extends further when looking at forward P/E multiples, which reflect the particularly strong rebound in EPS expected over the next year for homebuilders.

Commercial Equity REITs

It was a slow 24 hours of REIT newsflow as the sector gears up for the start of Q3 earnings season in mid-October. NAREIT released its monthly Rent Collection Survey yesterday which showed continued improvement across the surveyed sectors. Rent collection among net lease REITs has improved from around 70% in April to 95% in September. Collection rates among shopping center REITs have improved from below 50% in April to 82% by September. Apartment REITs continue to report rent collection around 96%. Apartment deferrals and forbearance continue to be minimal. Both retail subsectors show a fairly steady downward trend in deferrals from May to just over 5% in September for free standing and roughly 4% for shopping centers.

Skilled nursing REIT Omega Healthcare (OHI) finished marginally lower today after it announced yesterday afternoon that it is revising its method of accounting for lease-related revenue for tenants that have notified the company of potential bankruptcy risks. This change will result in "meaningfully lower" revenue in Q3, but cash rents, funds available for distribution, and cash flows won't be affected. OHI expects to write down straight-line receivables and lease inducements of roughly $140M in the September quarter, representing $65M for Genesis and $75M for Agemo. As we discussed in Healthcare REITs: Don't Pull The Plug Yet, the pandemic further exasperates issues that skilled nursing REITs are facing with their troubled operators, but these operators have also been significant beneficiaries of government relief programs.

Earlier this week, we published Industrial REITs: Virus Exposes Frail Supply Chains. The "hub of e-commerce" and the hottest property sector of the last half-decade, Industrial REITs have been unfazed by the coronavirus-induced pain that has encumbered much of the REIT sector. The dramatic acceleration in e-commerce adoption has pulled forward the "retail apocalypse" trends as retailers divert more of their capital away from malls and into distribution supply chains. While much of the REIT sector was slashing dividends this year, nearly half of industrial REITs have raised dividends in 2020. Rent collection among industrial REITs has averaged more than 97% since April. With the pandemic exposing deficiencies in supply chains, we believe the logistics-boom is back in the early-innings.

Mortgage REITs

As tracked in our Mortgage REIT Tracker available to iREIT on Alpha subscribers, residential mREITs finished higher by 2.6% today but ended the week lower by 4.0%. Commercial mREITs gained 2.4% today but finished the week lower by 3.9%. We saw a flurry of dividend announcements this week including a dividend boost from New Residential Investment (NRZ). Out of the 41 mREITs in our coverage, 31 reduced or suspended dividends, 8 have maintained, and 2 have raised. Last month, we published our Mortgage REIT Earnings Recap where we discussed some of the broader trends in the mREIT industry.

REIT Preferreds & Bonds

As tracked in our all-new REIT Preferred Stock & Bond Tracker available to iREIT on Alpha subscribers, REIT Preferred stocks finished higher by 1.30% today, on average, but underperformed their respective common stock issues by an average of 1.26%. Among REITs that offer preferred shares, the performance of these securities has been an average of 21.84% higher in 2020 than their respective common shares. Preferred stocks generally offer more downside protection, but in exchange, these securities offer relatively limited upside potential outside of the limited number of “participating” preferred offerings that can be converted into common shares.

This Week's Economic Calendar

We'll have a full analysis of this week's busy slate of economic data in our Real Estate Weekly Outlook report published on Saturday morning.

Join our Mailing List on our Website

iREIT on Alpha is the exclusive home to Hoya Capital premium research. Visit our website and join our email list for quick access to our real estate research library: HoyaCapital.com where we have links all of our real estate sector reports and daily recaps. You can also follow our real-time commentary on Twitter, LinkedIn, and Facebook.

Disclosure: A complete list of holdings and Real Estate and Housing Index definitions and holdings are available at HoyaCapital.com. Hoya Capital Real Estate advises an Exchange Traded Fund listed on the NYSE. Hoya Capital is long all components in the Hoya Capital Housing 100 Index.

Additional Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.

  • Alex Pettee, CFA
  • An antihero of the prior financial crisis, Homebuilders have seemingly been on a vendetta over the last six months, asserting themselves as the unexpected leader of the early post-pandemic recovery.

  • Homebuilders were slammed at the outset of the pandemic on fears that a coronavirus-induced recession could inflame a repeat of the Great Financial Crisis for the critical U.S. housing.

  • Instead, the U.S. housing industry has roared back to life in recent months. New Home Sales, Existing Home Sales, and Home Prices have all seen a substantial reacceleration this year.

  • The sharp rebound in housing market activity has been aided by longer-term macroeconomic trends of favorable millennial-led demographics, historically low housing supply, and near-record low mortgage rates.

  • Housing remains an “unloved” sector despite the compelling long-term tailwinds at its back. Homebuilders trade at deeply discounted valuations to the S&P 500 despite their stellar growth rates.

(This report was also featured on Seeking Alpha. Click Here to Read.)


Homebuilders: A V-Shaped Vendetta

An antihero of the prior financial crisis, publicly-traded homebuilders have seemingly been on a vendetta over the last six months, asserting themselves as the unexpected leader of the early post-pandemic recovery. After being slammed at the outset of the pandemic on fears that a coronavirus-induced recession could inflame a repeat of the Great Financial Crisis for the critical U.S. housing sector, homebuilders have roared back to life in recent months, leading the early stages of the post-pandemic recovery. In the Hoya Capital Homebuilder Index, we track the 15 largest homebuilders, which account for roughly $100 billion in market value. Together, these 15 firms constructed approximately a quarter of total single-family homes built last year.

As we discussed since the dark days of mid-March, while the "Housing Crash 2.0" narrative was certainly a clickable headline, macroeconomic fundamentals indicated that the U.S. housing industry was likely to be an unexpected leader of the post-pandemic recovery, a far cry from their role as a primary provocateur during the prior financial crisis. The U.S. housing sector foretold an emerging consumer-led rebound, which continues to catch analysts and economists by surprise, underscored by record-high readings on the Citi Economic Surprise Index. Perhaps the sharpest "V" of all economic data points has been seen in Homebuilder Sentiment itself, which jumped to the strongest levels on record in September, driven by a record surge in Home Buyer Traffic.

Even before we began to see the rebound in Homebuilder Sentiment, the early signs of the unexpected rebound in housing market activity were seen prominently in the Mortgage Bankers Association's weekly mortgage data as well as in Redfin's (RDFN) homebuying demand index, which formed the contours of a sharp V-shaped bounce amid the depths of the lockdowns in April. Bottoming on the week ending April 15th with year-over-year declines of 35%, the rebound over the last five months has been swift and unrelenting, and has yet to show any significant signs of cooling. The MBA reported this week that mortgage applications to purchase a single-family home are now higher by 25% from last year, the 18th straight week in positive territory. Mortgage refinance activity, meanwhile, is higher by 86% from last year.

While mortgage demand data and sentiment indicators were initially dismissed as "outliers," or as simply reflecting several months of deferred demand, a preponderance of other housing market data points has confirmed the broad-based rebound that has sustained - and even built steam - into the back-half of the year. This week, the Census Bureau reported that New Home Sales surged 43% in August from last year to the highest annual rate since 2006 at more than 1 million units. Not to be outdone, the National Association of Realtors reported that sales of Existing Homes rose by 10.5% from last year to the strongest sales pace in 14 years since December 2006. Meanwhile, Pending Home Sales in July were higher by 15.5% from last year.

A confluence of near-term factors and long-term tailwinds converged over the last five months that have generated a highly favorable environment for the U.S. housing industry, particularly single-family homebuilders. WWII-levels of fiscal stimulus more-than-offset the pandemic-related income losses, leading to a record-high surge in personal incomes over the last quarter. Meanwhile, unprecedented levels of monetary support from the Federal Reserve and other central banks helped to drive-down mortgage rates to record-low levels. Meanwhile, suburban markets in the periphery of the coastal shutdown cities have been seeing a sudden surge in demand amid an ongoing urban exodus. The "cherry on top" has been the dawn of the "work-from-home" era, which fundamentally changes the economics of suburban living.

As we've discussed with readers for many years, even without these short-term factors, the 2020s were already poised to be a very strong decade for the U.S. housing industry. New home construction has seen a slow, grinding recovery since plunging during the prior recession - a period in which roughly half of privately-held homebuilding firms in the United States went out of business. By nearly every metric, the US has been significantly under-building homes - particularly single-family homes - over the last decade, and the record-low inventory levels of both new and existing homes are clear effects of this underbuilding and resulting housing shortage. Residential fixed investment as a share of US GDP remains near historically low levels, a function of underinvestment in both new home construction and existing homes.

Meanwhile, this underbuilding comes ahead a decade in which the largest generation in American history - the millennials - will enter the housing markets in full-force, peaking around 2028. Harvard University's Joint Center for Housing Studies (JCHS) projects that annual household growth from 2018 to 2028 will average 1.2 million households per year, which is 20% higher than the prior five-year average. As JCHS points out, over the next 10 years, the population in key demographic groups will swell - particularly in the critical 35-45-year-old associated with incremental single-family housing demand. The largest of this cohort - those born between 1989 and 1993 - are just now on the cusp of entering this prime first-time homebuying age.

Confirming these trends, the U.S. Census Bureau reported last month that the homeownership rate jumped to the highest level since 2008 at 67.9%, driven by a continued rise in the household formation rate, which sent vacancy rates of both owned and rented housing units to multi-decade lows. Consistent with the demographic trends we've discussed, we forecast a steady uptick in the homeownership rate over the next decade as millennials and recent gains in the homeownership rate over the last three years have indeed been due primarily to a recovery in the younger age cohorts tracked by the Census Bureau. The 35- to 45-year-old cohort saw homeownership rates climb more than one percentage point to 64.3%, the highest in more than ten years.

Gains in the homeownership rate - and declines in the vacancy rates of both rented and owned households - came as a result of gains in total household formations. The homeowner vacancy rate ticked lower to 0.9% which was the lowest level on record. The rental vacancy fell sharply lower to 5.7% which was the lowest vacancy rate since 1981. Total household formations have increased by 1.9% over the last twelve months, which is the strongest twelve months of growth in household formations since 1985. There are roughly 20 million more U.S. households now than there were at the start of 2000 and we believe that the household formation rate will see continued gradual increases over the next five years as this "mini-generation" enters prime first-time homebuying age which we expect to provide a very positive fundamental backdrop for housing-related industries.

Homebuilder Performance and Sector Overview

Left for dead in late-March with the single-family homebuilder ETFs lower by more than 50% from their recent highs, homebuilders have sprung back over the last five months, as has the broader U.S. housing industry. The homebuilder segment of the Hoya Capital Housing Index has more than doubled from its late-March lows and is now higher by more than 20% this year, significantly outpacing the flat performance on S&P 500 ETF (SPY) and the 21.9% decline on the Equity REIT ETF (VNQ).


We should note, however, that homebuilding stocks tend to be extremely volatile and pay a relatively low dividend yield, so we believe that owning a diversified basket of housing-related companies on both the ownership and rental side of the market may be a prudent option for most investors seeking to gain exposure to housing.

A major theme in the homebuilding sector last year was the significant outperformance from builders focused on the lower-priced entry-level segment with strong demand coming from older millennials and from institutional rental operators including single-family rental REITs, which we discussed in a recent piece: Single Family Rentals: The Burbs Are Back. We've seen that trend continue this year with four of the five best-performing homebuilders targeting the entry-level segment including Meritage Homes (MTH), LGI Homes (LGIH) Century Communities (CCS), and D.R. Horton (DHI). Builders targeting the highest price points, as well as builders with higher exposure to the Northeast and West Coast markets, have generally underperformed this year including Taylor Morrison (TMHC), NVR Inc. (NVR), and New Home Communities (NWHM).

Deeper Dive: Homebuilding Economics

Taking a step back, the US single-family homebuilding sector is a cyclical, competitive, and fragmented industry, while also being one of the slowest sectors to recover from the Great Financial Crisis. Homebuilding can be broken down into two distinct businesses, each with different risk/return characteristics: 1) Land Development, and 2) Home Construction. Historically, homebuilders have been overweight in the land development business, but large public builders have increased their use of land options, offloading the land development responsibilities onto residential lot development companies (most of which are privately-owned), allowing these firms to focus on construction and reduce balance sheet risk.

As construction and regulatory costs had risen over the past decade, homebuilders had been shifting their focus towards higher-end units which commanded high enough margins to offset these increased costs. Recently, however, we've seen that trend reverse with homebuilders increasingly shifting their focus into entry-level segments where this projected demand growth is strongest. That shift is still in the early innings as these builders are still skewed towards the move-up and luxury segments. According to the Census Bureau, the median new home price for a newly-built home was $330,600 in July, while the median public builder in our 15-company coverage is $398,000. On the high-end, Toll Brothers and New Home Company have the highest average selling price while D.R. Horton has the lowest ASP.

Record-low inventory levels combined with robust levels of homebuying activity have put substantial upward pressure on home values since the start of the pandemic. All of the major home price indexes are now showing a reacceleration in price appreciation over the last five months, underscored by the 11.4% jump in Existing Home prices recorded by the NAR in August. Meanwhile, the FHFA Index showed home prices rising 6.5% on a year-over-year basis in July while the Case Shiller National Home Price Index recorded a 4.3% year-over-year rise in national home prices in its most recent report in June. Absent a significant "second wave" of economic lockdowns, we expect continued upward pressure on home values for at least the next two years.

If affordability - or lack thereof - is the primary headwind for homebuilders, there may be good news. The presence of institutional single-family rental operators has supported demand for affordable "built-for-rent" homes. Consistent with our view that the "institutionalization" of the single-family housing sector is a trend in the early innings, we expect built-to-rent buyers including American Homes 4 Rent (AMH), Invitation Homes (INVH), and Front Yard Residential (RESI) to account for a growing percentage of new home sales and single-family housing starts over the next decade, giving these builders a sales avenue even if individual homebuyers continue to have affordability difficulties.

For homebuilders, it's all about the "5 Ls": lending, lumber, labor, land, and legislation. The slowdown in the housing industry in 2018 - a year of strong economic growth - caught many investors by surprise and underscored the theme that housing can often diverge from the broader economy over the short and medium term. In 2018, all five of these factors were stiff headwinds, but started to ease in the back half of 2019 and into early 2020 as interest rates and construction cost inflation both cooled. Looking ahead, while the lending environment remains favorable, construction materials cost inflation (and the ability to source materials) has suddenly become a headwind to gross margins amid this single-family construction boom and supply chain issues.

As discussed in Timber REITs: Literally On Fire, the emerging constraint on further upside for the flourishing housing sector is surging lumber prices, the single most important commodity in single-family home construction and remodeling. Lumber prices have soared to record-highs from the combination of insatiable demand and reduced supply resulting from pandemic-related production shutdowns and forest fires raging in the Pacific Northwest.

Timber REITs were caught off-guard by the velocity of the rebound in lumber demand from single-family homebuilding and remodeling activity and have struggled to meet customer demand. Prices of random-length lumber futures (LB1:COM) briefly topped $1,000 in late August before pulling back to around $600, which is still roughly double the average price from 2000-2019.

Naturally, housing-related retail categories have seen a similar resurgence in recent months as the homebuilders themselves as the Building Materials category is second only to e-commerce as the top-performing retail category with a 15.4% higher sales rate than last year. The building materials category, which includes Home Depot (HD) and Lowe's (LOW), as well as the home furnishings category which includes companies like Restoration Hardware (NYSE:RH) and Whirlpool (WHR) have been positive standouts throughout the pandemic, reflecting the continued resilience of the housing sector and the fact that households have exhibited a propensity to prioritize investments in home improvement amid the "work-from-home" era.

Finally, you can't discuss the housing sector without mentioning the enormous impact of real estate technology in fueling the future growth of the sector over the next decade. The "prop-tech" industry includes data and technology companies including Zillow (Z), Redfin (RDFN), CoreLogic (CLGX), and RealPage (RP), as well as the tech-focused brokerage firms like Realogy (RLGY) and RE/MAX (RMAX), all of which have helped to streamline the buying, selling, and renting process of housing properties. The availability of technologies like virtual house tours and the increased adoption of entirely digital relationships between renters/homebuyers and landlords/brokers have proven to be especially critical amid the CV-19 disruptions.

Homebuilder Earnings Showed Robust Strength

Homebuilder earnings have been impressive nearly across-the-board since the start of the pandemic as most of the largest builders entered this period of uncertainty with a full head of steam. Commentary on earnings calls has been decidedly positive as recently-reporting builders - KB Home and Lennar - remarked that momentum has continued and even accelerated in late August and into early September, bucking the normal seasonal demand trends. Despite a weak start to Q2 in April and into May, homebuilders still reported a stellar 20% jump in net order growth, the most closely watched earnings metric, and a leading indicator of future revenue and home deliveries.

Homebuilding is a capital-intensive business with tight margins and a high degree of operating leverage, so gross homebuilding margins are generally the other most closely-watched performance metric. After reporting a pullback in Q1, homebuilders generally reported a solid rebound in gross and operating margins in the most recent quarter. Within our coverage, which only includes the largest builders in the country out of a pool of more than 20,000 total single-family builders, the critical importance of scale becomes clear through the wide gap in operating margins, which declines linearly with size. We continue to believe that an increasing share of starts will accrue to the publicly traded homebuilders with the scale necessary to achieve an adequate return.

Homebuilder Valuations Appear Highly Attractive

Despite leading the early stages of the post-pandemic economic rebound, homebuilders remain a relatively unloved sector, still trading at deep discounts to historical and market multiples. Homebuilders currently trade at an average trailing twelve-month Price to Earnings ratio of 12.1x, far below the roughly 28x trailing P/E multiple on the S&P 500. That valuation gap extends further when looking at forward P/E multiples, which reflect the particularly strong rebound in EPS expected over the next year for homebuilders.

Homebuilders have delivered EPS growth of nearly 30% per year since 2017, more than double the 13% annual EPS growth by S&P 500 components during that time. Within the sector, we note that investors generally award premium multiples to the large-cap builders like D.R. Horton and Lennar, as well as to builders with more "land-lite" options-heavy strategies including NVR. Investors looking for yield aren't likely to find much of it in the homebuilding sector, however. Only six of the fifteen homebuilders pay a dividend, led by MDC Holdings with a 3.0% yield while PulteGroup, D.R. Horton, KB Home, Toll Brothers, and Lennar pay yields of around 1%.

Key Takeaways: Homebuilders on a Vendetta

A confluence of near-term factors and long-term tailwinds converged over the last five months that have generated a highly favorable environment for the U.S. housing industry, particularly single-family homebuilders. Americans have been spending more time than ever in their homes and it's become abundantly clear that housing is perhaps the "ultimate essential service." The sharp rebound in housing market activity has been aided by longer-term macroeconomic trends of favorable millennial-led demographics and historically low housing supply, factors that should remain tailwinds well into the 2020s as the housing industry continues to play catch-up after a "lost decade" of accumulated underinvestment in residential fixed investment.

Housing remains an “unloved” sector despite the compelling long-term tailwinds at its back. Homebuilders trade at deeply discounted valuations to the S&P 500 despite their stellar growth rates. Homebuilding stocks remain extremely volatile and pay a relatively low dividend yield, however, so we believe that owning a diversified basket of housing-related companies on both the ownership and rental side of the market may be a prudent option for most investors seeking to gain exposure to the U.S. housing sector.


If you enjoyed this report, be sure to "Follow" our page to stay up to date on the latest developments in the housing and commercial real estate sectors. For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Apartments, Homebuilders, Manufactured Housing, Student Housing, Single-Family Rentals, Cell Towers, Casinos, Industrial, Data Center, Malls, Healthcare, Net Lease, Shopping Centers, Hotels, Billboards, Office, Storage, Timber, Prisons, Real Estate Crowdfunding, High-Yield ETFs & CEFs, REIT Preferreds.


Disclosure: Hoya Capital Real Estate advises an Exchange-Traded Fund listed on the NYSE. In addition to any long positions listed below, Hoya Capital is long all components in the Hoya Capital Housing 100 Index. Index definitions and a complete list of holdings are available on our website.


iREit on alpha.png
  • Facebook Social Icon
  • Twitter Social Icon
  • LinkedIn Social Icon

Hoya Capital Real Estate, LLC

Invest@HoyaCapital.com

(833) HOYA-CAP

Hoya Capital Real Estate ("Hoya Capital") is an SEC-registered investment advisory firm that provides investment management services to ETFs, individuals, and institutions, focusing on portfolio and index management of publicly traded securities in the real estate industry. It is not possible to invest directly in an index. Index performance cited in this website or commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Nothing on this site nor any published commentary by Hoya Capital is intended to be investment, tax, or legal advice or an offer to buy or sell securities. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and should not be considered a complete discussion of all factors and risks. Data quoted represents past performance, which is no guarantee of future results. Investing involves risk. Loss of principal is possible. Investments in companies involved in the real estate and housing industries involve unique risks, as do investments in ETFs, mutual funds, and other securities. Hoya Capital has no business relationship with any company discussed/mentioned. Hoya Capital never receives compensation from any company discussed/mentioned. Hoya Capital, its affiliate, and/or its clients and/or its employees may hold positions in securities or funds discussed on this website and our published commentary. A complete list of holdings and other important disclosures and definitions are available by clicking the links below.

Privacy Policy 

 Client Relationship Summary 

Hoya Capital's ADV Part 2

Important Disclosures, Definitions, & List of Holdings 

Seeking-Alpha-Logo.png

The Easy Way To Invest In Real Estate