Although SF REITs are still relatively small in the overall housing market, their rapid growth, particularly in certain locations, has raised concerns regarding their potential impact on individual homeownership. These concerns arise because SF REITs often acquire properties with cash, which makes it challenging for individuals to compete with them in the housing market. However, SF REITs also provide benefits to both investors and renters. Understanding the full impact of SF REITs will allow policymakers to develop appropriate strategies to ensure a balanced housing market.
This article appeared in the Third Quarter 2023 issue of Economic Insights. Download and read the full issue.