
Residential REITs invest in a variety of properties unlike some REITs, which are constrained within one segment or one type of property. Some residential REITs also invest according to geographical market and offer wider diversification to investors and yield high returns.
Therefore, with the industry’s tailwinds, it could be wise to watch fundamentally sound residential REITs AvalonBay Communities, Inc. (AVB), Equity Residential (EQR), and Invitation Homes Inc. (INVH) amid rising housing demand.