• Alex Pettee, CFA

Real Estate Weekly: REIT Rally Resumes As Earnings Season Heats Up

  • For full report, click here to visit Seeking Alpha!

  • Following the worst week of the year for REITs, the sector bounced-back on a busy week of economic data. REITs have climbed in fourteen of the seventeen weeks of 2019.

  • GDP data smashed through estimates in the first quarter, silencing concerns that economic growth may be stalling out following the 2018 reacceleration. A true “Goldilocks” report, inflation pressures remained muted.

  • GDP growth is even more impressive considering the recent drag from residential fixed investment and non-residential construction. A tailwind for REITs, supply growth has cooled even as demand remains robust.

  • New Home Sales topped estimates, climbing to a sixteen-month high as lower mortgage rates are translating into stronger demand. Homebuilder earnings, however, have been mixed so far this quarter.

  • Household formations are growing at the strongest rate since 1985, powered by rising wages and solid job growth. More households are renting, however, as the homeownership rate stalled-out in Q1.

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