Residential REIT ETF Could Capitalize on Diminishing Sentiment Toward Home Ownership

On the other hand, almost four of 5 people who own a home, along with those over the age of 55, believed it is a good time to buy. Homeowners have seen their equity increase recently, which may help push them to upgrade.

“Meanwhile, renters interested in buying continue to face minimal choices, strong competition and home prices growing faster than their incomes,” Yun added.

As more have been stuck with renting, residential REITs could continue to find support. For instance, the iShares Residential Real Estate Capped ETF (NYSEArca: REZ), which includes a 45.7% tilt toward residential REITs, along with 33.9% healthcare REITs and 20.3% specialized REITs, has increased 10.5% year-to-date. REZ also offers an attractive 3.89% 12-month yield.

Related: 44 Best REITs ETFs to Generate Yields

Investors can also gain residential REITs exposure with broader REIT ETF options. For example, the Vanguard REIT ETF (NYSEArca: VNQ) includes a 15.8% weight toward residential REITs. VNQ is up 15.7% year-to-date and offers a 3.27% 12-month yield.

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iShares Residential Real Estate Capped ETF