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The gap between home and apartment-rental costs is going to narrow, which means rents will keep rising. Apartment REITs let you profit without the hassle of being a landlord. It looks like the axiom that says, "For every action, there's a reaction," applies to the housing market. Although new home sales appear to be falling off a cliff, the apartment-rental market is booming. Many investors are profiting from the action via real-estate investment trusts (REITs) that specialize in that market. Is it too late to participate? Probably not. I'll show you how to pinpoint the best candidates in a minute, but first some background. According to a recent report published by RealFacts, a research outfit that focuses on the apartment industry, occupancy rates and rents are rising all across the United State. Nationwide, rents are up 4% over the past year and occupancy levels are running at 94%. In San Jose, Calif., where the action is the hottest, apartment rents rose 9% on average. All this is new. When the economy faltered in 2001, apartment rents dropped and continued falling until last year, when they bottomed out and began to turn around. What's behind the upsurge in apartment rentals? It's simple: In 2005, prices of single-family homes skyrocketed, dramatically shifting the rent vs. own equation Submitted By: F Jaydon
References: MSN Money | 
