Apartment REITs: Rents Are Soaring
After lagging early in the pandemic, Apartment REITs have surged nearly 40% this year as rental operators across the country have been "passed the torch" of the flaming-hot housing market.
Apartment rents are rising at the fastest rate on record as the pandemic-driven boom in household formations - including 1.6 million new renters - has clashed with the record-low housing supply.
Demographics suggested the 2020s were already poised to see historic housing demand, but the Work From Home era has begun to unleash millions of extra "deferred" formations among adult children.
Apartment REITs reported that new lease rates soared 15% in July - the highest on record - as rents are now rising by double-digit rates across half of the major markets.
While there are few "bargains" left across any asset class, residential REITs appear to be at the genesis of a multi-year growth phase and have historically been quintessential inflation hedges.
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