Last year was a rough one for the real estate sector. The average real estate investment trust (REIT) shed a quarter of its value as rising interest rates weighed on valuations.
That has several REITs looking like bargains these days. One sector in particular that stands out is residential REITs focused on the fast-growing Sun Belt region, led by Camden Property Trust (NYSE: CPT) , MAA (NYSE: MAA) , and Independence Realty Trust (NYSE: IRT) . With their share prices down more than 25% from their peak, these fast-growing REITs look like screaming buys right now.
There has been a steady population migration from Northern to Southern states over the past few decades, due to the South's warmer weather and more affordable cost of living. In the decade from 2010 to 2019, several Southern states saw population increases of more than 10%. This trend has accelerated since the start of the pandemic as more people have had the flexibility to work remotely, allowing them to work from anywhere.
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Down 25%-Plus From Their Recent High, These Dividend Stocks Look Like a Screaming Buy