What REITs Just Told Us About the Apartment Market—and Why It Matters for You

Every quarter, the nation’s largest apartment REITs (real estate investment trusts) give us a snapshot of what’s really happening in multifamily real estate. They manage tens of thousands of units, operate in nearly every U.S. region, and have their finger on the pulse of tenant demand, pricing, and market dynamics.

So what did they say in Q1 2025? The headline is clear:

Fundamentals are strong. Growth is steady. But caution still rules.

If you’ve been on the fence about investing—or wondering whether it’s “safe” to enter the U.S. apartment market right now—this post is for you. Here’s a breakdown of the five biggest takeaways from the REIT calls, and how it all ties back to the two new deals we’re launching next week.

Demand Is Holding Strong—Nationwide

Across urban and suburban markets, REITs reported continued leasing momentum, solid renewal growth, and healthy occupancy rates.

– UDR beat expectations with lower turnover, higher occupancy, and improving rent growth.
– MAA, operating heavily in the Sun Belt, noted solid migration and lease activity.
– Even in high-supply markets, rents were “less negative”—pointing to a stabilizing trend.

Translation: People still need quality rental housing, and demand isn’t showing signs of cracking—even with macroeconomic noise in the background.

Affordability Is Not a Headwind—At Least Not Here

Despite media headlines, REITs consistently reported that renters in their communities are in strong financial shape:

– Rent-to-income ratios are steady at ~21%
– Delinquencies are low
– Credit scores for new renters are actually increasing
– Bad debt levels are near pre-COVID norms

This is particularly true for mid- and high-income renters—the same audience served by well-located Class B and C value-add properties (like ours).

Residents Aren’t Leaving

Turnover is at record lows, and not just because fewer people are buying homes. Residents are choosing to stay put, even when they have other options.

Why?

– Fewer reasons to move (interest rates, tight housing supply)
– Operators are offering better resident experience and renewal processes
– Apartments offer predictability in uncertain times

MAA, EQR, Camden, and AVB all cited historically low turnover, a critical factor in maintaining cash flow and reducing leasing costs.

Tariffs and Layoffs? Minimal Impact So Far

While tariffs and federal job cuts have made headlines, their impact on apartment operations has been negligible—at least for now.

– Builders estimate a 2–4% bump in construction costs
– REITs say their numbers haven’t changed
– In D.C., where federal employment drives housing demand, REITs report 97%+ occupancy and growing rents

We’re watching this closely, but so far, it’s more noise than signal.

REITs (and Private Buyers) Are Back in Acquisition Mode

Despite caution in their forward guidance, REITs are actively buying. Camden, AvalonBay, Essex, and others all made acquisitions last quarter—often facing competitive bidding environments, especially for value-add assets.

What does this mean for you?

– It means the pros are moving—because they understand that uncertainty creates opportunity.

Like the REITs, we’re buying when others hesitate. We’re pursuing deals with strong cash flow, renovation upside, and pricing well below peak market comps.

What This Means for Faris Capital Investors

Our next apartment deal just launched. It is:

✅ Well-located in a high-demand, rent-growth postive market
✅ Acquired with a strong value-add strategy
✅ Already generating cash flow income
✅ Vetted for both U.S. and Canadian investors

We’re seeing what the REITs are seeing—and we’re acting. If you’ve been sitting on the sidelines waiting for a sign, this is it.