Residential REITs benefit from strong demand for apartments, despite mixed economic conditions.

From Zacks Investment Research: 2025-04-04 16:02:00

The first quarter of 2025 saw a surge in apartment demand, with over 138,000 units absorbed nationally, marking a record high. This is good news for residential REIT investors like AvalonBay Communities, Equity Residential, Essex Property Trust, and UDR. Occupancy rose to 95.2% in March, while rent growth increased by 1.1% year-over-year to reach $1,848. However, economic conditions present a mixed picture, with concerns around employment growth and consumer confidence. Despite short-term volatility, long-term demand drivers for multifamily housing remain strong. Residential REITs are well-positioned to benefit from improving fundamentals.



Read more at Zacks Investment Research: Can Residential REITs Bounce Back on Solid Demand in Early ’25? – April 4, 2025