I decided years ago that owning a house wasn’t for me. I don’t want to be tied to the same place for too long. I bought my first house in 2012 and turned it into a rental property when I relocated from Baltimore to Delray Beach in 2015. I sold it during COVID after my long-time tenant trashed it after turning to drugs.

The second house I owned was in Florida. My boyfriend at the time convinced me it was an investment in our future. I have since lost quite a bit of money… and I don’t spend much time in Florida anymore.

I’m done with owning a house for the foreseeable future. Maybe a condo someday, but for now, I’m happy with being a rolling stone. That doesn’t mean I don’t follow what’s going on in the real estate market.

I have many friends who are real estate agents, and others who are actively looking to buy. The supply of single-family homes now stands at 4.6 months, its highest since July 2016. This 21% year over year rise in inventory has exposed a glaring divide between buyer and seller perspectives.

Sellers still think they can list at 2022 market highs, while buyers are looking for 2012 deals.

If you’ve figured out how to generate income from rental properties, more power to you. I hope you find the best tenants who sign multi-year leases and that your appliances last 10+ years.

If you’re like me and that doesn’t interest you, here’s how to end-run this market. Invest in publicly-traded companies that pass through most of their real estate income to shareholders like me and you.

A Better Option

Real estate investment trusts (REITs) are an essential tool for income investors. They were created as part of the Cigar Excise Tax Extension of 1960 to give the average investor access to real estate.

Instead of dropping big money on one rental you have to manage, you can buy shares of a REIT for a fraction of the cost and own a slice of a portfolio of high-quality real estate.

You can find them across all kinds of real estate: shopping centers, office buildings, medical centers, and the cannabis industry are just a few examples. You can even find residential REITs!

Your income won’t be held prisoner by a single tenant that can’t pay their rent. In most cases, the tenants have deeper pockets than you and I. Walmart isn’t likely to miss a rent payment to the shopping center owner. And its leases tend to run for 20+ years.

The best part is that REITs are required to pass through almost all of their income to shareholders in exchange for tax advantages. This results in above-average income without adding more risk.

This approach makes much more sense than owning real estate in one location. The risk is spread out and the reward is above average.

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My Favorite Trends Right Now

I still look at overall market trends when researching REITs. Right now, I wouldn’t recommend office REITs. At the start of 2025, about 20% of US office space was sitting empty. That’s 900 million square feet!

Yes, news of giant companies forcing workers back to the office are in the headlines, but remote work isn’t headed for the dust bin of history.

Here are three real estate trends I like instead:

• Experiences Over Stuff

Gen Z and Millennials make up a large part of this trend, but they are not alone. Americans have spent decades accumulating stuff, but experiences are now winning the battle for disposable income. VICI Properties (VICI) is one of the REITs profiting from this trend.

The company owns property leased by 54 casino destinations (including some of the Vegas strip), championship golf courses, bowling alleys, and Great Wolf Lodge locations. It was one of the few companies that can tout 100% rent collection in 2020. Even at the height of the pandemic, its tenants didn’t want to risk their prime locations.

VICI currently yields 5.2% and continues to find innovative partnerships in the experiential industry.

• Extra Space Is Not a Problem

Americans have too much stuff. In both good and bad economic times, people use self-storage as a solution for having more stuff than space. CubeSmart (CUBE) and Public Storage (PSA) are in fact REITs that pay 5% and 4.2% yields, respectively.

I’ve liked both companies for several years, but my official recommendation is any of the Public Storage preferred stock offerings.

• Logstics Make the World Go Round

From ships to trucks to trains, all the stuff we consume needs to be packed, stored, and sorted. This happens at warehouses and logistics properties all over the country. I’m incredibly bullish on industrial REITs right now, and that includes manufacturing properties as well.

My favorite is STAG Industrial (STAG) which owns 597 buildings across 41 states. It currently yields 4.1% and pays monthly instead of quarterly dividends.

Even if you don’t agree with my favorites, you 100% should have some real estate exposure in your portfolio, and REITs are the best way to lock in income.

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For more income, now and in the future,

Kelly Green

• CubeSmart
• Public Storage
• REITs
• STAG Industrial
• VICI Properties