The home price appreciation since the COVID-19 pandemic began has been staggering. Over the past year, the Federal Housing Finance Agency (FHFA) House Price Index has risen 17.5%, and that is an average number. In some of the hottest markets like Phoenix, prices have been rising up to 38%.
Recently, developer Marvy Finger, who has over 5 decades of developing luxury real estate properties sold half of his Sunbelt apartments, as he considers the recent price appreciation to be unsustainable. He warns of an upcoming glut of apartments. Does this mean trouble for apartment real estate investment trusts (REITs) like Equity Residential (NYSE: EQR) ?
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For further details see:
Apartment Rents Will Start to Tumble, Says Powerful Real Estate Billionaire