Residential REITs own and operate apartment communities, single-family rental homes, and manufactured housing communities. The housing affordability crisis — driven by high mortgage rates and a chronic supply shortage — has kept rental demand elevated as would-be homebuyers remain renters longer. Sunbelt markets (Atlanta, Dallas, Phoenix) have seen both strong demand and significant new supply, pressuring rents, while coastal markets (New York, San Francisco) have tighter supply dynamics.
Same-store revenue growth and new lease vs. renewal lease rate spreads. Watch new supply deliveries in target markets — elevated completions temporarily pressure occupancy. Blended rent growth (new + renewal weighted) is the headline metric. Watch mortgage rate levels as a proxy for rental demand stickiness.