Millennials and REITs: A Smart Investment Move in the Face of Housing Unaffordability

As the dream of homeownership becomes more elusive for millennials in the current real estate landscape, savvy investors are turning their attention to alternative avenues. Apartment real estate investment trusts (REITs) emerge as a strategic option, providing a gateway to real estate exposure and wealth accumulation. 

Here's two apartment REITs you could buy today.

Apartment Income REIT Corp.

Apartment Income REIT AIRC, also known as AIR Communities, owns and operates a portfolio of 75 communities containing 26,623 apartment homes across 10 U.S. states and the District of Columbia.

AIR currently pays a quarterly dividend of $0.45 per share, equating to $1.80 per share annually, which gives it a yield of about 5.5% today. It's also worth noting that the company has raised its quarterly dividend twice since it became a publicly-traded entity in December 2020, and its strong financial performance in 2023 could support another increase in the near future.

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 

Independence Realty Trust, Inc.

Independence Realty Trust IRT owns and operates a portfolio of 120 communities containing 35,427 apartment units across non-gateway U.S. markets, including Atlanta, Columbus, Dallas, Denver, Houston, Indianapolis, Memphis, Nashville, Oklahoma City, Raleigh, and Tampa.

Independence Realty currently pays a quarterly dividend of $0.16 per share, equating to $0.64 per share annually, which gives it a yield of about 4.2% today. The company has also raised its dividend each of the last two years following a 33% reduction to its rate in 2020 as a result of uncertainty caused by the COVID-19 pandemic.

Arrived Homes

You can also gain exposure to the benefits of homeownership through Arrived Homes.

Arrived is an alternative investment platform, backed by Jeff Bezos and Dara Khosrowshahi, that allows individuals to easily invest in real estate by purchasing shares of rental properties. Investors on the platform earn passive income through the rental revenue while waiting for the properties they invest in to appreciate in value over time.

Read Next:

• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.

Image Credit: Shutterstock