Rents at the major apartment-owning REITs increased in the second quarter by an average of 1.82% when compared with a year ago. Companies with holdings in major markets generally posted far better rent numbers than those with holdings in the Sunbelt.
The major REITs are 11 companies that collectively own 526,347 units. That’s 2.3% of the roughly 23 million units in the entire country, according to the National Multifamily Housing Council, which compiles its data from U.S. Census Bureau numbers. However, REITs tend to own large properties. The overwhelming bulk – two-thirds – of the country’s inventory is in properties with fewer than 49 units each.
While properties in the Sunbelt had enjoyed outsized rent growth after the Covid lockdowns, that’s been all but eliminated, thanks to the near glut of new construction that resulted from the hefty demand.
Now, the winners, in terms of rent growth, are properties in major markets.
Source: Major Apartment REITs See Marginal Rent Growth in Q2 2024
