• Alex Pettee, CFA

Apartment REITs: No Rent Strike, But Fears Of Urban Exodus

Updated: Sep 19, 2020

  • Apartment REITs - along with the broader housing industry - were firing on all cylinders before the pandemic, driven by highly favorable demographic trends and the lingering housing shortage.

  • What Rent Strikes? Apartment REITs reported limit issues with rent collection in April and early-May amid the depths of the pandemic-related shutdowns as more than 95% of rents were collected.

  • The magnitude of job losses resulting from government-mandated economic shutdowns, however, warrants a fundamental revaluation if these tens of millions of "temporary" furloughs become permanent layoffs.

  • Urban exodus? Ultra-dense metros like NYC, Chicago, and San Francisco may see lasting pain as residents flee to lower-cost and “safer” semi-urban and suburban markets, including faster-growing Sunbelt metros.

  • As one of the more defensively-oriented and countercyclical REIT sectors, we remain bullish on long-term rental fundamentals and expect the housing industry to be a leader of the economic rebound.

To continue reading, click here to visit Seeking Alpha!

Glass Buildings

Keepin' It Real 

Economics, Housing, & Commercial Real Estate Analysis

apartment REITs
homebuilders ETFs
single family rental REITs
manufactured housing REITs
student housing REITs
data center REITs
Cell tower REITs
net lease REITs
industrial REITs
storage REITs
office REITs
mall REITs
REIT Preferreds and Bonds
hotel REITs
Timber REITs
healthcare REITs
Billboard REITs
shopping center REIT
High-Yield Real Estate ETFs
Real Estate CEFs
Casino REITs
cannabis REITs
prison REITs
mortgage REITs
real estate crowdfunding
REIT Portfolio Strategy
REITs Taxes
HOMZ_Logo_Just Ticker.png
ETF express.png

Explore our Real Estate Indexes

The Easy Way To Invest in Real Estate

REIT Forum HOYA AD.png