Apartment stocks topping most other REITs sectors as tough housing market spurs demand for rentals
Stocks in companies that own apartment buildings are holding up better than most other real estate investment trusts, as a tough U.S. housing market keeps demand for rental housing healthy and tenant turnover low
LOS ANGELES (AP) — Stocks in companies that own apartment buildings are holding up better than most other real estate investment trusts, as a tough U.S. housing market keeps demand for rental housing healthy and tenant turnover low.
The FTSE NAREIT Equity REITs index, which includes owners of apartments, office, retail and other commercial property types, is down 2.9% through the first five months of this year.
The 14-company apartment segment of the index, meanwhile, had a total return of 5.2% in the same period. One of the nation's largest apartment REITs, Virginia-based AvalonBay Communities, is up about 22% since last October. It owns and manages over 90,000 apartments across the U.S.
That performance trails only malls and health care property owners.
