Two investments are looking up in today’s real estate market: rental properties and REITs (real estate investment trusts).
Demand for rental apartments is booming due to an uptick in employment, resulting in people relocating to areas with job opportunities, like New York City.
With home ownership at a 12-year low, and few signs of growth anytime soon, investors are looking for the best way to capitalize on the economy’s current boost in earnings.
The investment that is coming up strongest on their radar are apartment-owning REITs, delivering a differentiated pool of property investments in one package. Among many of the favorable attributes of REITs is the hedged risk factor, as compared to single home purchases.
Overall, commercial real estate is becoming more attractive to prospective investors. They are looking more and more at shopping malls, office buildings and storage facilities, which are all showing signs of steady growth, aided by years of almost no new construction, limiting supply, while a strengthening economy increases demand. [The Street]