My Favorite Charts from REITweek

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Camden’s median renter age is among industry’s lowest at 31 years old, and they’re spending just 19% of income toward rent. And half of their renters aren’t even doubling up to shoulder the rent: 50% of residents live alone. Also: More than half are under age 35.

Not a surprise to see Camden’s move-outs to home purchase at lowest level on record. But it IS surprising to see move-outs to single-family rentals or condo rentals also trending downward. Intuitively, you might think more are moving to SFR if they can’t afford to buy a house. But it’s not happening.

Equity Residential’s renters have a median age of 33 and are bringing home incomes of $169k, spending only 20.3% of income toward rent. Nearly half are single. Few have children living in the apartment with them.

EQR announced the acquisition of 2,064 units in Atlanta’s northern suburbs for $535 million at a going-in cap rate in the high 4s – reflecting the reality of the market today for well-located, new-ish vintage apartments. Of course, going-in cap rates are less meaningful for REITs with lower cost of capital and long hold periods. Still: It’s an interesting comp. Scheduled to close later in Q2.

Fascinating charts from EQR on San Francisco. It shows rental revenue in Downtown San Francisco is STILL below pre-COVID levels five years since the pandemic hit. That’s not just nominal rent levels, but presumably also economic occupancy related? Regardless, it also shows upside potential for San Francisco as the market continues its very gradual healing.

Similar to Camden, MAA shows not only a reduction in move-outs to home purchase, but also below-normal move-outs to single-family rentals – again a bit surprising given the challenges of buying a home.

MAA’s renters are spending 21% of income toward rent. Renter household incomes average $91k, and top $100k in Orlando and Tampa. Renter incomes are nearing six-figures in Atlanta and Dallas, as well. On the flip side, MAA’s lowest renter incomes are in Nashville ($75k).

Why do apartment and BTR developers expect tariffs to impact construction costs by only low/mid single digits? This AvalonBay chart helps explain: Materials represent only 20% of construction costs. That’s the chunk potentially impacted by tariffs. By comparison, labor / subcontractors represent half the cost.

Institutional investors on the private side typically want around a 200 bps spread for new development versus acquisitions. But REITs like AvalonBay (and others) are betting on the lower-supplied future, and moving forward with spreads of 100-150 bps. This is an AvalonBay chart but others showing similar numbers, with stabilized yields projected around 6% from most REITs on new development.

UDR shows a steady decline in rent-to-income ratios as wage growth tops rent growth.

UDR’s median renter age is 32. But the distribution by age is even more interesting. You can see clear growth in the 45+ cohort (from 24% pre-COVID to 27% today), with that growth coming at expense of the under-25 cohort. It’s interesting because you might expect to see a bigger increase among 30-somethings, given this is the age of most first-time homebuyers, and many would-be buyers aren’t yet leaving due to affordability challenges of buying. But the growth isn’t there. It’s in the 45+ group, and I wonder how much of that is shaped by the growing number of Boomers returning to the apartment market.

Great chart from Essex showing job postings among Top 20 tech companies. Look at that rebound in 2024-25, and that helps explain rapidly improving fundamentals in Silicon Valley especially (particularly with return-to-work requirements).

Essex median incomes at $131k, with renters spending 22% of income toward rent. In Santa Clara Valley (Silicon Valley), incomes are at $168k.

IRT shows renter incomes ranging from $82k to $92k across their markets, with Dallas on top. Rent-to-income ratios are below 21% everywhere except Tampa and Denver (24%), and even sub-19% in Oklahoma City and Memphis.

Fascinating data from IRT showing 52% of their residents are women. Also: 22% of all IRT’s new residents are moving in from out of state.

Centerspace shows surprisingly high renter incomes even in tertiary markets like North Dakota, Omaha and Rochester (MN). Who would have guessed (besides CSR, of course) apartment renters in Rochester, MN, are bringing in incomes north of $130k? Interesting numbers that once again show strong financial health among renters in institutional grade apartments. Centerspace renters spend 20.7% of income toward rent.

BSR recently made headlines for selling a portfolio of Texas assets to AvalonBay, but BSR remains bullish on Texas, too. They recently acquired two assets in Houston’s northern suburbs in and near Spring.

The single-family rental REITs continue to favor new construction over scattered-site acquisitions. Invitation Homes says they have more than 1,800 homes under construction with targeted yields around 6%.

AMH, too, is heavily focused on new construction. AMH delivered 2,350 homes last year and expects to complete around 2,300 this year. They control another 9,000 lots for potential new development, as well.