History doesn’t repeat itself, but it sure does rhyme. And that rhyming cadence could mean some hefty income and gains potential for those investors following the pattern. In this case, the drumbeat of recession and apartment REITs.
Residential-focused real estate owners were some of the biggest winners during the last recession as the housing crisis gripped the nation. And while housing has bounced back, it’s still a shadow of what it once was. That’s allowing apartment REITs to see amazing occupancy rates and rental growth. The best part is that this growth is happening across most regions and apartment types. This has already helped on the dividend and funds from operation (FFO) fronts.
The kicker is that rents and demand could surge in another recession scenario.
For investors, the trends propelling apartment REITs make the sector a prime play for the coming quarters.
Read about REIT valuations and how to decipher them here.
