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Three ETFs let you collect rent from hundreds of apartment buildings, warehouses, and data centers without a single maintenance call, and the current housing market may be quietly tilting the odds further in their favor.
Multifamily REITs face a challenging environment, with supply peaking in 2024 and oversupply pressuring lease rates until at least 2027. Private market distress and a looming $160B–$168 billion maturity wall in 2026–2027 may create future acquisition opportunities for REITs, especially the strongest players. Group valuations are tightly packed; balance sheets are generally safe, but risks from higher yields and private market volatility remain material.
According to the Census Bureau, new home sales were at a seasonally adjusted annual rate of 628,000 in June. This represents a 1.6% increase from May's upwardly revised rate of 618,000 but a 5.6% drop from the previous year.
These ETF gainers of June may keep climbing in July as dovish Fed hopes, strong earnings and easing geopolitical risks support markets.
iShares Residential and Multisector Real Estate ETF faces headwinds from persistent inflation and home affordability challenges, potentially limiting near- to medium-term upside. REZ's portfolio is concentrated in healthcare, self-storage, and residential REITs, with healthcare REITs comprising nearly 50%, offering some defensive characteristics. Persistent inflation, stalled housing legislation, and possible Fed rate hikes could pressure REZ and real estate broadly, especially if affordability issues worsen.
According to the Census Bureau, new home sales were at a seasonally adjusted annual rate of 580,000 in May. This represents a 7.3% decline from April's rate of 626,000 and an 6.8% drop from the previous year.
The average short interest in US equity real estate investment trusts grew in May compared with the prior month. US equity REITs' average short interest rose 5 basis points from April to about 5.0% of shares outstanding in May, according to an S&P Global Market Intelligence analysis. Farmland REITs posted the largest month-over-month increase in average short interest in May, rising 89 basis points to 5.6% of shares outstanding.
REITs have refused to break in 2026 despite oil-driven inflation pressure, rising Treasury yields, and a Fed narrative that flipped from multiple rate cuts to potential hikes. The “Rates Up, REITs Down” regime has weakened, with REIT-rate correlations falling sharply as fundamentals, strategy, capital allocation, and valuation catalysts increasingly drive performance. M&A has helped break the rate-driven narrative, validating public-market discounts to NAV and proving that REITs can unlock value through consolidation, privatizations, and strategic alternatives.