- A year ago, we wrote about a Q3 2020 acquisition in suburban Seattle and argued it provided evidence that Equity Residential would soon direct capital to new markets.
- A year later, we believe the shift is clearly evident, but admittedly the shift is less about urbanicity and more about targeting a specific demographic and geo-diversification.
- Equity Residential remains mostly bi-coastal and the most "Urban" REIT in the MultiFamily REIT space. Omicron variant could slow down recovery in these markets for the near term.
- Equity Residential's suburban markets, especially in California, remain healthy and are tailwinds for its same-store growth in core markets.
- Equity Residential's leadership has clear demographic and geographic requirements for its portfolio. Investors should care about the interplay of demographics/geo-diversification and the financials of the REIT's portfolio.
For further details see:
Demography Is Destiny: Equity Residential's Evolving Portfolio