Equity Residential Reports Big Increase in Earnings as Apartment Demand Remains Strong
The U.S. has a severe housing shortage. According to some estimates, there is an "underbuilding gap" of anywhere between 5.5 million and 6.8 million units in the country. The current shortages of labor and materials are increasing the costs of new homes, and the rapid rise in mortgage rates since the beginning of the year has had negative effects on affordability.
Many would-be buyers are finding themselves looking at renting as prices and borrowing costs soar. This is good news for apartment real estate investment trusts (REITs), especially Equity Residential (NYSE: EQR), which specializes in luxury apartments in urban areas.
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Source Fool.com
