"A decline in home ownership is good for companies who have apartments to rent," notes The Dave Dyer Newsletter. To benefit from this trend, he looks at Avalon Bay (NYSE: AVB)." Here is his review.
"After a 10 year period of consistent increases from 1995 to 2005, the trend toward increasing home ownership has reversed and is now clearly in decline. The subprime problems and tighter credit policies will only serve to increase the decline.
"One of the easiest ways to invest in this trend is to buy shares in a REIT that owns apartment properties. Avalon Bay (NYSE: AVB.) is a REIT that manages high quality apartment communities in the high barrier-to-entry markets like California, the Pacific Northwest, the Northeast and Mid-Atlantic.
"In some cases, they develop their own properties; in others, they buy and remodel existing apartment complexes. They currently own 182 properties with about 52,000 apartments in total. AVB has 19 more properties under constructions and development rights for another 52.
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