“I skate to where the puck is going” – Wayne Gretzky

As managers of an active Residential REIT ETF, we analyze where people are migrating across the country. The demographic trends and reports are instrumental as we shape the portfolio to try and focus on these key locations.

By combining data from RealPage, Redfin, Zillow, U-Haul, our underlying constitutents, and more, we can exploit migration trends and predict which Residential REITs should benefit from this relocation.

For example, in their press release dated January 3rd, 2023, U-Haul noted that “Texas, Florida and the Carolinas were the preferred destinations of one-way U-Haul® truck customers during 2022, ranking as the top growth states on the annual U-Haul Growth Index.”

The story continues to note that “Texas is the No. 1 growth state for the second consecutive year and the fifth time since 2016. Florida, which ranks second, has been a top-three growth state seven years in a row. South Carolina, North Carolina, Virginia, Tennessee, Arizona, Georgia, Ohio and Idaho round out the top 10 growth states. Virginia and Alabama are the biggest risers, climbing 26 spots from their respective 2021 rankings. New York, Massachusetts, Michigan, Illinois and California are the bottom five states for growth in 2022.”

According to RealPage, “The five states with the largest number of apartments under construction as of 3rd quarter 2022 include Texas, Florida, California, North Carolina and New York. Combined, these markets are building 45% of the nation’s apartments.”

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