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Wwith the diminished desire for renters to turn into new homeowners, the residential REITs sector could continue to find support from renters as many face rising rents that could keep them from becoming buyers, especially if wages remain stagnant.
“Real-estate gains have been slowing, lending standards have tightened, and real estate insiders have become concerned with fundamentals. With Public Real Estate still up nicely year to date, and autumn approaching (typically a volatile time of the year for the class), we favor taking some profits off the table and reallocating to asset classes we believe have better risk/return tradeoffs,” according to Wells Fargo.
For more information on real estate investment trusts, visit our REITs category.