Last year was extremely difficult for real estate investment trusts (REITs) that focused on apartments. The COVID-19 pandemic caused many tenants to lose their jobs, while eviction moratoriums prevented landlords from removing non-paying tenants. Vacancy rates rose as renters left for the suburbs and many apartment REITs turned to price concessions in order to maintain occupancy numbers.
Equity Residential (NYSE: EQR) was in that position. But it's looking like things are improving for the whole sector, and Equity Residential's stock has been a strong performer this year as part of the reopening trade. Investors are betting that people will rediscover the allure of the cities, and rents will appreciate.
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Investing in Residential REITs? Start With This One