Higher household incomes are great news for the apartment business—both for property managers and for residents.
“The demand for housing—particularly among young adults—may be growing,” says Dan McCue, senior research associate for the Joint Center for Housing Studies at Harvard University.
After a very slow start to the year, apartment REITs may buy a few more properties as their stock prices recover.
Case in point: Mid-America Apartment Communities just announced its deal to buy Post Properties for nearly $4 billion. The giant acquisition reverses the trend of the past year, when REITs bought fewer apartment properties and many became net sellers./p>
The market for real estate investment trusts (REITs) has been choppy this year. Let me be more specific: The market for equity REITs has been choppy. Mortgage REITs – at least those inside the portfolios of two exchange-traded funds – have been on a quiet tear. It’s uncertain if that will continue.