Coastal Apartments Beat Sunbelt Apartments in Revenue Growth: A Look at REIT Performance in 2Q22
Markerr looked at REIT performance in 2Q22 and found that Coastal apartments saw better revenue growth than Sunbelt apartments for the first time since the start of the Covid pandemic. Stellar revenue growth of ~12.5% exceeded expectations, which resulted in guidance being raised across the board. Coastal markets benefited from the easier comp period as well as the normalization of bad debt.
In addition, asset values fell ~8% as interest rates increased with REITs generally trading into markets with higher population growth. A ranking of markets with the most affluent renters suggests that Savannah, Cincinnati, Tampa, Chattanooga and Phoenix are good expansion targets.