The COVID-19 crisis has accelerated some trends that were already in place, and one of the biggest has been the exit out of urban areas and the newfound appeal of suburban environments. As a result, apartment real estate investment trusts (REITs) with heavy urban exposure, like Equity Residential , have seen declining earnings driven by weakness in their core New York City, Boston, and San Francisco markets.
On the other side of that equation, American Homes 4 Rent (NYSE: AMH) is seeing massive demand, which is translating into pricing power.
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American Homes 4 Rent Is Benefiting From Strong Demand and Rising Real Estate Prices