Top REITs to Invest in During a Housing Boom: Maximize Your Real Estate Gains in 2025

City skyline with residential and commercial buildings

Investing in Real Estate Investment Trusts (REITs) during a housing boom can be a smart way to capture gains from rising property values and rental demand without owning physical property. In 2025, several REIT sectors and individual stocks stand out as prime candidates to maximize returns amid the booming housing market.

Why Invest in REITs During a Housing Boom?

REITs offer a unique opportunity to invest in real estate with liquidity similar to stocks, plus attractive dividend yields. A housing boom generally means increased demand for residential properties, driving rents and occupancy rates higher. This environment benefits Residential REITs, especially those focused on apartments and single-family rentals, as affordability challenges push more people to rent rather than buy.

Moreover, REITs diversify your portfolio across property types and geographies while providing exposure to commercial, healthcare, industrial, and specialty real estate sectors benefiting from broader economic trends.

Top REIT Sectors to Watch in 2025’s Housing Boom

1. Residential REITs: Capitalizing on Rental Demand

Residential REITs, including apartment complexes, manufactured housing, and single-family rentals, thrive when home affordability is low and population/job growth is strong. The U.S. housing market's current affordability crunch is pushing many to rent, keeping occupancy rates high and rents rising.

These REITs offer stable cash flow and potential capital appreciation. Examples include REITs focusing on urban apartment communities and suburban single-family homes, which are gaining popularity as remote work reshapes living preferences.

2. Industrial and Logistics REITs: Riding the E-Commerce Wave

The explosive growth of e-commerce fuels demand for warehouses, distribution centers, and last-mile delivery hubs. Industrial and logistics REITs own and lease these critical assets, locking in long-term tenants and benefiting from rising rents.

REITs like Industrial Logistics Properties Trust (ILPT) and Empirical Logistics are positioned to profit from supply chain innovations and the continued expansion of online retail.

3. Healthcare REITs: A Demographic-Driven Opportunity

An aging population drives demand for healthcare facilities, including hospitals, medical centers, nursing homes, and senior living communities. Healthcare REITs provide exposure to this recession-resistant sector, offering both defensive qualities and growth potential.

Top performers like Diversified Healthcare Trust (DHC) and Welltower (WELL) have posted impressive returns recently, reflecting strong market demand for healthcare real estate.

4. Specialty REITs: Tech Infrastructure and More

Specialty REITs such as data centers and cell tower operators tap into the booming tech economy. Data center REITs benefit from growing cloud computing, AI, and digital infrastructure demands, while cell tower REITs like Crown Castle (CCI) earn steady income from wireless carriers.

These sectors offer unique risk-return profiles and diversification benefits, complementing traditional real estate investments.

Top REIT Stocks to Consider in 2025

Here are some of the most compelling REIT stocks to invest in during the housing boom, based on valuation, dividend yields, sector strength, and recent performance.

REIT Name	Ticker	Sector	Forward Dividend Yield	Notes
Diversified Healthcare Trust	DHC	Healthcare	~N/A	80%+ annual return, strong healthcare real estate focus
Welltower	WELL	Healthcare	~N/A	47%+ annual return, senior housing and medical facilities
Industrial Logistics Properties Trust	ILPT	Industrial/Logistics	~N/A	46%+ annual return, benefits from e-commerce and supply chain demand
Crown Castle International	CCI	Specialty (Cell Towers)	4.63%	Undervalued, strong position in US wireless infrastructure
Federal Realty Investment Trust	FRT	Retail	4.67%	Shopping centers in top metros, undervalued with solid dividend
Pebblebrook Hotel Trust	PEB	Hotel & Motel	0.35%	Luxury hotel portfolio, trading below fair value, higher risk due to sector volatility
iShares Residential and Multisector Real Estate ETF	REZ	Residential/Multisector	N/A	Top residential REIT ETF, diversified exposure to housing-related REITs

Note: Dividend yields and returns fluctuate, so always check current data before investing.

How to Choose the Best REIT for You

When selecting REITs during a housing boom, consider these factors:

Sector fit: Residential REITs are prime picks for housing booms, but diversification into healthcare, industrial, and specialty REITs can balance risk.
Valuation: Look for REITs trading below their fair value, indicating potential upside.
Dividend yield: Higher yields provide income but be wary of unsustainably high payouts.
Occupancy and rent growth: Strong metrics indicate healthy demand.
Geographic focus: REITs in high-growth markets with job and population increases tend to perform better.

Tips for Investing Successfully in REITs

Diversify across sectors and geographies to reduce risk.
Monitor interest rates since rising rates can pressure REIT valuations.
Focus on REITs with strong management teams and tenant diversity.
Consider ETFs for instant diversification if you prefer a hands-off approach.
Stay updated on housing market trends and economic indicators influencing rent and occupancy rates.

Hands holding model house with upward graph overlay

Final Thoughts

The 2025 housing boom presents a compelling backdrop for investing in REITs, particularly residential, industrial, healthcare, and specialty sectors. By choosing quality REITs with strong fundamentals and growth prospects, investors can harness the benefits of real estate appreciation and steady income while avoiding the complexities of direct property ownership.

Whether you are new to REIT investing or looking to rebalance your portfolio, focusing on these top sectors and stocks can help you capitalize on the evolving real estate landscape and secure long-term returns in this dynamic market.