Since the COVID-19 pandemic, residential real estate has been one of the best-performing asset classes. Landlords were earning rental income and seeing their assets appreciate at levels in the mid-teen percentages. In some hot markets, like Phoenix and Austin, home prices rose 50% or more.
This increase in home prices translated into rising rental rates. But now that home-price appreciation is flattening out, we're seeing decreases in rents, as well. Does this present a problem for apartment real estate investment trusts (REITs) like Equity Residential (NYSE: EQR) ?
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For further details see:
Rents Are Falling -- Is This a Problem for Equity Residential?