The Federal Reserve’s decision to raise interest rates multiple times this year to combat high inflation and the Russia-Ukraine crisis could keep the stock market under pressure in the near term. Amid this environment, investors could turn toward residential REIT stocks to hedge their portfolios, as they offer a steady income stream through dividends.
Moreover, the need to move to a bigger and better living and remote-working space is creating a severe supply and demand imbalance in the housing market, leading to solid price gains. This should benefit residential REITs. In addition, the multifamily vacancy rates are meager, and rents are on the rise, which could be a boon for the residential REIT industry.
