HAUZ - Apartment REITs: Happy Landlords Unhappy Renters

• No more "Free Rent." Renters will receive an unwelcome surprise with the next renewal offer as rents across the country are suddenly surging at the fastest rate in a half-decade.
• The demographic and pandemic-driven boom in household formations has clashed with record-low housing supply to push housing costs higher across the ownership and rental markets.
• The vaccine rollout has halted the "urban exodus" and stabilized rental rates in coastal markets. Sunbelt and suburban markets, meanwhile, are reporting record-high rates of rent growth.
• After lagging in 2020, Apartment REITs have gained nearly 30% this year, boosted by a strong slate of Q1 earnings results with seven of ten apartment REITs raising their full-year earnings guidance.
• Apartment REITs aren't the bargains that they were in late 2020, but valuations still appear compelling as rent growth "catches up" with home values amid a backdrop of persistently low housing supply and robust demand.

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