Here's Why Rising Home Prices Help Avalon Bay
Apartment real estate investment trusts (REITs) had a rough go of it during the past couple of years as COVID-19 caused a surge in delinquencies, and companies were often forced to make concessions to keep tenants in their apartments. Many states imposed no-eviction policies, which caused an increase in non-collectible accounts. As the U.S. emerged from the pandemic, real estate prices took off. These rising prices are providing the basis for rent increases which will help drive earnings.
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Avalon Bay (NYSE: AVB) is an apartment REIT that operates in 12 states and had 81,803 units as of the end of 2021. Avalon Bay is concentrated in urban areas, primarily in the Northeast, the Mid-Atlantic, Southern and Northern California, and the Pacific Northwest. It is also expanding into the Southeast, Southwest, and the Mountain states. Avalon Bay is developing new properties in its expansion markets and looking to reduce some of its footprint in established markets like the Northeast and California.
Source Fool.com
