The apartment sector has been one of the best performing segments of the REIT market as the mortgage crisis has channeled millions of households from single family homeownership to rental housing.
Apartment REIT price returns are up 225 percent through February 2012 since the REIT market’s trough in March 2009.
The surge in apartment REIT share prices has caused some investors to question whether apartment REIT stocks are fully valued. However, new research from the National Association of Real Estate Investment Trusts (NAREIT) shows a dearth of new apartment construction, coupled with a record level of pent‐up demand for apartment space, have created an approximately 2.5‐million unit supply‐demand imbalance in apartment inventory – an imbalance likely to support strong financial performance by apartment REITs in 2012 and well beyond.
Read more...New Multifamily Housing Construction at 20-Year Low via REIT.com
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