Will Declining Rents Impact Equity Residential's Earnings?
After a couple of years of scorching growth, the fire is finally starting to burn out for the housing market. The Federal Housing Finance Agency (FHFA) House Price Index reported a decline in prices during July, and apartment rents fell marginally in August according to an analysis by Apartments.com.
This decline in housing and rental prices is somewhat normal and relates to seasonality as prices generally peak during the spring shopping season and early summer. But some of it could be tied to a tightening economy and actions by the Federal Reserve. The Fed would like to see home price appreciation cool, which will help affordability. So where does this leave apartment real estate investment trusts (REITs) like Equity Residential (NYSE: EQR)?
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Source Fool.com
