Impact of Real Estate Investment Trusts on Housing Prices in the U.S.

This paper examines the impact of real estate investment trusts (REIT), that invest in residential properties, on U.S. housing prices. Using a U.S. monthly time-series dataset, from February 2012 to December 2023 with data on home prices as a function of REIT performance, and other national macroeconomic control variables the results of a two-stage least squares (2SLS) model support a positive and statistically significant causal relationship between the growth of Equity Residential REITs and single-family home prices in the United States.