3 REITs With The Highest Returns Over The Past Year and more

4 Factors Impacting Return To Office Trends Link

• Industry Influence: Certain industries have higher in-person work rates. For instance, in Manhattan, biotech, life sciences, pharma, and healthcare sectors had in-person office visits at 90.9% of their 2019 levels by the end of 2022

• City-Specific Trends: Cities like Manhattan, Fort Lauderdale, Dallas-Fort Worth, and Nashville had higher in-person rates at the end of 2022 than the national average. These rates are influenced by the labor pool and the type of work being carried out in these areas.

• Quality Matters: Higher quality office buildings, such as Class A+ properties, are performing better than Class B properties. This suggests a shift by companies looking to upgrade their work environments, potentially to attract and retain talent.

Nearly 92% of homeowners now have a mortgage rate below 6% Link

• Mortgage Rate Landscape: 91.8% of homeowners with mortgages are paying less than 6% interest, below the current average mortgage rate of 6.71%. This is causing a reluctance among homeowners to list their current homes and reenter the mortgage market.

• Lock-In Effect: High mortgage rates are discouraging both buyers and sellers, leading to a "lock-in effect" where homeowners are hesitant to take on a higher mortgage rate. This effect is expected to persist as mortgage rates are unlikely to drop below 6% before the end of the year.

• Inventory Levels: The reluctance of homeowners to sell due to high mortgage rates has pushed inventory levels to record lows. This has fueled competition among homebuyers in some areas, keeping prices from dropping off too severely despite depressed demand overall.

Why economists say it's a near certainty that housing inflation will soon fall Link

• Housing Inflation Peak: Housing inflation has been high for months, but economists believe it has reached its peak and is on the verge of a reversal. This is due to the CPI's substantial lag in capturing real-time price trends in housing.

• Rent Growth Slowdown: Rent growth has slowed significantly. For instance, rents grew by 4.8% in May from a year earlier, a significant slowdown from 15.7% growth during the prior year.

• CPI Lag: The CPI operates with a substantial lag, meaning it can take six months to a year for a decline or increase in current housing prices to fully feed through to inflation data. This lag is due to the U.S. Bureau of Labor Statistics' method of collecting rent data from sample households every six months.

New Data Reveals Top Challenges and Opportunities in Affordable Housing Link

• Operational Efficiency: The top challenge for affordable housing property management companies is operational efficiency, with 75% of the operators surveyed ranking it as their number one challenge. The study found that employees believe there is significant room to improve operational efficiencyby reducing “busy work" and freeing up teams from labor-intensive processes.

• HR, Staffing, and Recruitment: HR, staffing, and recruitment is another major challenge, with 47% reporting this among their top 3 challenges. The data shows that only 52% of affordable housing property management team members are satisfied with their salary, indicating a need for improved compensation and retention strategies.

• Risk, Compliance, and Regulations: Compliance with regulations is a top challenge, with 58% of respondents citing it as the most challenging activity within this category. Many regulations are complicated and time-consuming, contributing to burnout and further exacerbating HR and staffing challenges.

Top 10 U.S. Counties Most Affected by Housing Market Downturn in Q1 2023 Link

• Western Region Impact: The Western region and other upscale areas are bearing the brunt of the recent U.S. housing market downturn. Almost half of the 50 counties seeing the biggest impact were in the West, with 12 in Oregon and Washington.

• Less Impact in South, Midwest, and Northeast: The South, Midwest, and Northeast, along with lower-priced markets, are seeing less fallout from the housing market downturn. States in these regions, led by Texas, Connecticut, and Illinois, had 18 of the 50 counties showing the smallest effects from the pullback.

• Top 10 Most Affected Counties: The top 10 U.S. counties starting to see an impact from the recent housing market downturn include Spokane County, WA; Cowlitz County, WA; Dona Ana County, NM; Kaufman County, TX; Washington County, PA; Rutherford County, TN; Jackson County, OR; Humboldt County, CA; District Of Columbia County, DC; and Gaston County, NC.

3 REITs With The Highest Returns Over The Past Year Link

• Service Properties Trust: This diversified REIT has reported two excellent quarters in 2023, with hotel occupancy and revenue per available room (RevPAR) increasing. Over the past 52 weeks, it has had a total return of 71.81%.

• Tanger Factory Outlet Centers Inc.: This retail REIT owns 37 shopping centers across 20 states. It recently increased its quarterly dividend by 11.3% and reported first-quarter operating results that beat analysts' estimates. Over the past 52 weeks, it has had a total return of 55.57%.

• Apartment Investment and Management Co. (AIMCO): AIMCO owns, leases, and manages apartment complexes across the U.S. It has seen 10.6% revenue growth and 14.2% growth in net operating income (NOI) in the first quarter of 2023. Over the past 52 weeks, AIMCO has had a total return of 44.54%.