The U.S. residential rental market has demonstrated remarkable strength since the pandemic. All types of housing — including traditional multifamily, single-family rental and manufactured housing — have exhibited strong occupancies, collections and rent growth. Furthermore, all price points, from luxury to lower end, and locations, both urban and suburban, are experiencing success in these key operating metrics.

Since second quarter 2021, publicly traded multifamily REITs have exhibited portfolio occupancy above 96 percent and collections over 98 percent. Since third quarter 2021, REITs’ annual rent growth has exceeded 10 percent — and the market continues to expect reasonably strong adjusted funds from operations (AFFO) and same-store net operating income (NOI) growth. Accordingly, the broader sector has benefited from the collective tailwinds of exceptional demand from strong household formation and more muted supply.

While these last two years have indeed be