Authors: Randy I. Anderson, Richard McLemore, Philip Conner, and Youguo Liang

Start Page: 113
End Page: 132
Volume: 25
Issue Number: 02
Year: 2003
Publication: Journal of Real Estate Research

 
Abstract: In this article, we examine the portfolio implications of apartment investing.  In particular, we explore the sector?s relative stability, liquidity, and current market outlook. In general, we find support for many of the advantages attributed to apartments relative to other property types. The apartment sector has historically offered high risk-adjusted returns and a relatively low correlation with other property sectors. These features, combined with the attractive demographics and stable space market fundamentals, suggest that the current environment should be favorable for apartment investing. However, the popularity of the sector, aggressive rent growth assumptions, and potential limitations on future immigration provide sources of performance risk.