Investors are increasingly turning their attention to the real estate sector as the Federal Reserve signals a potential shift toward lowering interest rates. Over the past month, five major U.S.-listed real estate ETFs have collectively seen net inflows of $2.2 billion, a figure that accounts for more than half of their total inflows over the last year. 

This surge in capital reflects growing confidence that the real estate sector stands to benefit from anticipated lower borrowing costs and a more favorable economic environment. 

Fed Chair Jerome Powell recently hinted at the Jackson Hole Symposium that rate cuts could be on the horizon, driven by signs of a cooling labor market and progress toward the 2% inflation target. As a result, ETFs like the iShares U.S. Real Estate ETF (IYR) and the Vanguard Real Estate ETF (VNQ) have seen substantial inflows, reinforcing the sector’s strong recovery and positioning it as a key beneficiary of potential monetary easing.

Finsum: Focus on REITs with single family rental performance, because corporate real estate is still dependent on hybrid/work from home policy.