The past few years have not been kind to real estate investors. Despite the Federal Reserve cutting interest rates, 30-year mortgage rates remain historically elevated, and major homebuilders are seeing steep declines. The big three—PulteGroup (NYSE: PHM), Lennar (NYSE: LEN), and D.R. Horton (NYSE: DHI)—are down nearly 20%, 20%, and more than 25%, respectively, from their year-to-date (YTD) highs.
At the same time, despite corporate America’s best return-to-office measures, office vacancy rates are approximately 18% to 19%—close to 40-year highs. Companies like Vornado Realty Trust (NYSE: VNO) and Alexandria Real Estate Equities (NYSE: ARE) are down more than 20% and 49%, respectively, in 2025.
