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3 Best Stocks For The Housing Slowdown

REITs

The rate of home purchases has slowed dramatically. Since the start of the year, mortgage rates have doubled from around 3% to more than 6%. The affordability of homes has plummeted, as have sales. Yet individuals and families still have to live somewhere, so slowing home sales will benefit companies with residential rentals.

If they can’t afford to buy a home, they will need to rent. Rental choices include multi-family residences, such as apartments, and rental single-family homes (SFRs).

While apartment/multi-family REITs have been around for decades, SFR ownership was primarily in the hands of individual or private company investors.

The rise of SFR REITs occurred over the last decade, with their home acquisitions ramping up dramatically over the last few years. Currently, investors can invest in single-family rental homes through three REITs.

The post 3 Best Stocks For The Housing Slowdown originally appeared at Investors Alley.