The New American Dream: How Millennials and Gen Z Are Shaping the Future of Housing for These REITs

Exploring the landscape of real estate investments, particularly through Real Estate Investment Trusts (REITs), reveals a sector rich with opportunities for investors. Each of these REITs carves out its niche within the broader market, responding adeptly to the nuanced demands of today's renters, who range from millennials seeking flexibility to professionals valuing convenience and luxury. We'll unpack the distinctive strategies and offerings of these REITs, shedding light on how they're each positioned to thrive in a market where the preference for renting is increasingly pronounced, influenced by shifting lifestyle priorities and economic factors.

American Homes 4 Rent

American Homes 4 Rent AMH, boasting a solid dividend yield of 3%, stands out as an attractive option for investors exploring the real estate market. The company aligns closely with the current trends in housing preferences, particularly among Millennials and Gen Z. As home prices escalate and lifestyle priorities evolve, an increasing number of individuals from these generations opt for renting over buying, driven by economic challenges and a preference for flexible living arrangements. American Homes 4 Rent is at the forefront of this trend, offering high-quality rental properties and positioning itself as a pivotal player in the evolving market landscape.

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 

Invitation Homes

Similarly, Invitation Homes Inc. INVH, offering a comparable dividend yield of 3%, is a prominent figure in the single-family rental sector, paralleling American Homes 4 Rent in market focus. This REIT has leveraged the burgeoning trend of single-family rentals, especially notable in suburban locales post-pandemic, where there’s a marked preference for more spacious living arrangements. With a substantial portfolio in the Sunbelt region, known for its robust population growth and appealing business climate, Invitation Homes excels in acquiring, renovating, and leasing properties, thus delivering both capital appreciation and consistent rental income. Their effective operational strategy has resulted in strong occupancy rates and rent growth, affirming its appeal to long-term growth-focused investors.

Camden Property Trust

Shifting focus, Camden Property Trust CPT, which specializes in multifamily residential apartment communities and offers a higher dividend yield of 4%, serves a different market niche compared to American Homes 4 Rent. Esteemed for its upscale apartment communities, Camden caters to a diverse demographic, including Millennials and Gen Z, who prefer the urban lifestyle yet value community and high-end amenities. Strategically situated in vibrant metropolitan areas characterized by significant employment growth and diversity, Camden's properties are designed to attract and retain residents, distinguishing it in the multifamily sector.

Read Next:

• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.

Image credit: Shutterstock

Start generating passive income through real estate

Check out these featured investments from Benzinga's Real Estate Offerings Screener.