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With interest rates now as low as 1.75%, the robust dividend yields on real estate investment trusts (REITs) are looking very attractive to investors.
That's why we're bringing you the best REIT to buy for 2020.
Of course, low interest rates aren't the only things working in favor of the best REITs. Just look at the U.S. economy as we head into 2020.
The U.S. GDP grew 2.2% from $20.49 trillion in 2018 to $21.35 trillion in 2019. And another 2% growth is expected for 2020.
The November 2019 U.S. jobs report also soared above analyst expectations. Originally, it had forecast 187,000 for new jobs in November, but jobs actually grew by 266,000.
Beyond that, the unemployment rate fell to 3.5%, a half-century low, while wages were reportedly 3% higher than they were the previous year.
That's not just great news for the stock market, it's great news for real estate. With Americans doing as well as they ever have, they have more money to spend on homes.
For folks interested in the best REITs to buy, it's going to be even better.
The best REIT to invest in is in a hotly demanded sector that can help you add income to your portfolio in a low interest rate environment: multifamily housing.
In 2019, multifamily housing was a great performer thanks to soaring housing prices, with 8% growth to $336 billion, according to FreddieMac Multifamily.
Now, the kind of housing owned by multifamily REITs is in big demand. It provides both savings and simplicity. Hot demand has spurred a boom in the building of multifamily units as well.
And because the newly built supply is still too low to meet rising demands, apartment building prices are continuing to climb.
So, with high tenant demand and increasing real estate prices, there's strong consumer confidence within the sector. If you own an apartment REIT, you don't have to worry about the income you'll receive from dividends.
We see multifamily REITs and real estate booming well into 2020. In fact, at Money Morning, we're betting on the market for multifamily housing to push the best REITs for 2020 to greater heights.
Check out our Top REIT for 2020, below…