More Americans are renting again.
“The difference between mortgage payments and rental costs poses a substantial challenge for individuals and families trying to transition from renting to homeownership,” said Matt Vance, Americas Head of Multifamily Research at CBRE. “Many are finding that renting not only offers financial advantages, but also provides the flexibility and lifestyle benefits they value, allowing them to adapt to changing circumstances and priorities.”
CBRE is also forecasting annual growth of 3.1% in multifamily rents over the next five years, which is above the pre-pandemic high of 2.7%.
The best part – we can profit from the trend and collect dividends with real estate investment trusts (REITs). In fact, here are three to consider.
AvalonBay Communities (SYM: AVB)
With a yield of 2.98%, AVB is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California.
As of September 30, 2024, the Company owned or held a direct or indirect ownership interest in 305 apartment communities containing 92,908 apartment homes in 12 states and the District of Columbia, of which 19 communities were under development.
Equity Residential (SYM: EQR)
With a yield of 3.7%, EQR is focused on the acquisition, development and management of residential properties located in and around cities that attract affluent long-term renters.
It owns or has investments in 314 properties consisting of 84,584 apartment units, in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin.
The company also declared quarterly dividends on the Company’s common and preferred shares. A regular common share dividend for the fourth quarter of $0.675 per share will be paid on January 17, 2025 to shareholders of record on January 2, 2025.
UMH Properties (SYM: UMH)
With a yield of 4.38%, UMH owns and operates a portfolio of 139 manufactured home communities with approximately 26,200 developed homesites, of which 10,300 contain rental homes, and over 1,000 self-storage units.
These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina and Georgia.
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