Why Is Everyone Talking About Mid-America Apartment Communities?
Mid-America Apartment Communities (NYSE: MAA), one of the premier real estate investment trusts (REITs) specializing in leasing apartments, has had an impressive run over the past year. Share prices are up 72% year over year, nearly triple the S&P 500's growth. The market is definitely paying attention to this stock, but it's not the only reason people are talking about MAA. Here's a closer look at what makes this company an exciting investment today.
The pandemic has changed nearly every facet of life as we know it. But the ability to work from home remains one of the most significant changes we're navigating through. This newfound freedom of remote work has allowed countless families to reassess where and how they live, seeking alternative housing in warmer, more affordable climates. This migration toward the Sun Belt, which is the southern region of the United States, is a major reason Mid-America Apartment Communities is thriving.
Nearly all of Mid-America Apartments' portfolio is located in the Sun Belt, putting it in a prime position to profit from this inward migration. Blended rental growth in October 2021 was up over 16%, and occupancy is sitting at 95.6%. This strong performance is undoubtedly fueled by record demand from rental real estate in the markets MAA operates in, which isn't likely to subside any time soon.
Source Fool.com
