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Jay Parsons highlights that the ongoing reduction in the number of sizable apartment real estate investment trusts (REITs) is part of a long-standing trend rather than the start of a new one.
Parsons points out that the sector has contracted from more than 30 sizable apartment REITs to just 6.
Parsons previously discussed the merger between AvalonBay and Equity Residential, noting that the combined company's 180,000 units represent only 0.5% of the market. In a separate analysis, he argued that limiting institutional investors in U.S. housing could reduce supply and impact families seeking rental options. These comments have come as consolidation continues across the apartment REIT sector.