Best Multifamily Sunbelt REITs in 2024

Best Multifamily Sunbelt REITs in 2024

Even though many Sun Belt markets are seeing higher vacancy rates due to the volume of new developments in the past few years, investing in multifamily Real Estate Investment Trusts (REITs) focused on the Sun Belt region can be successful in the long-term due to the area's robust population growth and economic expansion. The Sun Belt encompasses the southeastern and southwestern United States, including states like Texas, Florida, Georgia, and Arizona. Several REITs have concentrated their portfolios in these high-growth markets:

Mid-America Apartment Communities (MAA)

• ‍Overview: MAA is a leading apartment REIT with a significant presence in the Sun Belt, owning over 100,000 apartment units. The company focuses on high-growth markets such as Florida, Georgia, and Texas.‍
• Investment Highlights: MAA has demonstrated consistent performance, benefiting from strong rental demand and favorable demographic trends in the Sun Belt.

Camden Property Trust (CPT)

• ‍Overview: CPT owns and operates a diversified portfolio of apartment communities, with a substantial portion located in Sun Belt cities like Austin, Houston, Atlanta, Dallas, and Charlotte.‍
• Investment Highlights: CPT has reported robust rental growth, with new and renewal leases experiencing significant year-over-year increases, reflecting the strong demand in its markets.

Independence Realty Trust (IRT)

• ‍Overview: IRT focuses on apartment communities in non-gateway markets, primarily within the Sun Belt. The company expanded its footprint through a strategic merger with Steadfast Apartment REIT, creating a combined portfolio of approximately 38,000 units across 131 communities.‍
• Investment Highlights: The merger enhanced IRT's scale and operational efficiencies, positioning it as a leading multifamily REIT in the Sun Belt region.

Equity Residential (EQR)

1. Overview: While traditionally focused on coastal markets, EQR has increased its exposure to the Sun Belt. In August 2024, the company agreed to purchase 11 apartment complexes with more than 3,500 units in Atlanta, Denver, and Dallas/Fort Worth for $964 million, marking a significant investment in the region.
2. Investment Highlights: This acquisition reflects EQR's strategic shift towards high-growth Sun Belt markets, capitalizing on favorable demographic trends.

These REITs have strategically positioned their portfolios to benefit from the ongoing migration and economic growth in the Sun Belt, offering potential opportunities for investors seeking exposure to this dynamic region.