How Does Working from Home Affect Apartment REITs?
Covid-19 has radically changed how Americans work.
According to Morningstar, an American financial services firm headquartered in Chicago, it’s estimated that 45% of US workers were teleworking at the peak of the pandemic.
So how does this WFH (work at home) affect single-family REITs?
Not that much by all accounts.
“While we do expect increased work-from-home uptake to cause some urban renters to move to the suburbs and lower-cost metros, the magnitude of this shift is overstated,” Morningstar writes. “We certainly don’t expect cities to become ghost towns in the long run, as some of the more hyperbolic commentary suggests.”
Despite the pandemic, apartment REITs have had collections between 97% and 98% since the start of the pandemic, which is only a slight decrease over normal patterns.
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Mr. Willig engages and coordinates a professional team of real estate brokers, general contractors, leasing agents, and property managers in order to rehabilitate, lease and maintain the properties he acquires for SpringView Investments. He has over 20 years of finance and accounting experience.