Residential REITs are gaining focus as high home prices, affordability limits, and slower new supply keep more households renting longer in 2026.
Experts describe US residential Real Estate as high conviction, with improving fundamentals, lower new supply, accelerating demand, and stronger apartment-sector conditions in 2026.
The setup centers on easing supply pressure, intact rental demand, early REIT recovery, low valuations, steady earnings growth, and attractive dividends for investors.
A potential merger between two major residential REITs was reported on May 20, combining firms valued near $26B and ~$24.8B by market value.
Analysts expect Sunbelt oversupply to take years to absorb, while apartment and single-family rental earnings growth could bottom during 2026 across REITs.
