Rents Are Surging Again

Summary

• U.S. equity markets rallied this past week as long-term inflation expectations eased following a lukewarm slate of economic data and as massive new government spending programs face diminishing public support.
• Snapping a two-week skid, the S&P 500 rallied 1.2% on the week. Bitcoin slid as the "crypto crackdown" continued with the digital token facing amplify scrutiny from the SEC.
• Real estate equities - particularly residential REITs and homebuilders - led the gains this week as the Equity REIT Index gained 2.0% with 18-of-19 property sectors in positive territory.
• Driven by an intensifying housing shortage as robust demand clashes with historically low supply, data this week showed that home values and rents are both rising at historic rates.
• Luxury homebuilder Toll Brothers jumped nearly 9% on the week after reporting stellar earnings results with order growth surging 85%. Elsewhere, three more equity REITs boosted their dividends.
• This idea was discussed in more depth with members of my private investing community, Hoya Capital Income Builder. Learn More »

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Analyst’s Disclosure:I am/we are long HOMZ, AMT, ARE, AVB, BXMT, DRE, DLR, EFG, EQIX, FB, FR, MAR, MGP, NLY, NHI, NNN, PLD, REG, ROIC, SBRA, SPG, SRC, STOR, STWD, PSA, EXR, AMH, CUBE, ELS, MAA, UDR, SUI, CPT, NVR, EQR, INVH, ESS, PEAK, LEN, DHI, HST, AIV, MDC, ACC, PHM, TPH, MTH, WELL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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