3 Worthwhile Stocks To Consider During a Housing Downturn

The housing market tends to fluctuate a lot, which can make it challenging for investors to predict what will happen next. During times when the market is doing well, it can seem relatively easy to make money by investing in housing-related stocks. However, when the market is struggling, it can be more difficult to turn a profit. Having said this, the housing market tends to recover very quickly during an upswing in the economy. 

On the other hand, if the housing market is struggling, it can be an indication that the economy may soon experience difficulties. This relationship has been demonstrated in the past, with the housing market often serving as an early warning sign for economic downturns.

Although the housing market may experience difficulties at times, there are still opportunities for investors to make money in this sector. Some companies within the housing market may not rely solely on the health of the housing market to generate profits, and may instead offer other products or services that can be attractive to investors. These types of companies may not necessarily be high-growth stocks, but during a downturn in the housing market, they can still provide some level of stability and potentially even growth for investors. 

1. Ventas (NYSE:VTR)

Ventas is a real estate investment trust (REIT) that invests in properties related to senior housing and healthcare. The company owns and operates a portfolio of more than 1,200 properties across the United States and Canada. With the aging of the population and the increasing demand for senior housing and healthcare services, Ventas provides investors with exposure to this growing sector.

Ventas is a company that stands to benefit from the growing demand for senior housing and healthcare services. As the population ages, there will be a need for not only housing, but also for the management of healthcare needs for this demographic group. This means that revenue and earnings for Ventas are likely to be relatively stable, even during times of economic uncertainty.For instance, the company’s revenue did experience some impact during the onset of the Covid-19 pandemic, but it has largely recovered and this is reflected in the company’s stock price, which has only declined by 11% in 2022.

Ventas is a company that is popular among institutional investors, who currently own about 92% of its stock. This means that many investors may own Ventas as part of their mutual funds or exchange-traded funds (ETFs), rather than directly purchasing shares of the company. One reason for this popularity may be the company’s dividend, which currently has a yield of close to 4%.

Concerning Ventas 

Ventas is a publicly-traded company that is listed on the S&P 500 index. The company operates at the intersection of the healthcare and real estate industries, and is known as one of the world’s leading real estate investment trusts (REITs). Ventas uses capital to invest in real estate and partners with providers of care, research institutions, and healthcare organizations to generate value. The company’s success is underpinned by an aging population that has a high demand for products and services directly related to Venta’s portfolio. 

2. Prologis (NYSE:PLD)

Prologis is a real estate investment trust (REIT) that focuses on investing in industrial properties. The company owns a portfolio of more than 1 billion square feet of leased space, including warehouses and distribution centers. In recent years, Prologis has benefited from the increasing demand for industrial real estate as companies have sought to add additional space for storage and distribution purposes. 

Even if the economy experiences a slowdown or recession, the demand for industrial real estate is expected to continue until 2030. This is likely to drive the growth of companies like Prologis, which owns and operates a large portfolio of industrial properties. Revenue for Prologis is forecast to grow by approximately 20% over the next five years, and the company’s stock price has increased by 75% in the last five years.

Concerning Prologis

Prologis is a company that specializes in real estate for logistics purposes, with a focus on markets that have high barriers to entry and strong growth potential. As of at the end of the last decade, the company owned or had invested in around 984 million square feet of real estate across 19 countries. This includes both fully-owned properties and investments made through partnerships.

3. Sun Communities (NYSE:SUI)

Sun Communities is a company that owns and manages manufactured home communities, RV resorts, and marina resorts. These communities often have a mix of homes that are owned by residents and homes that are available for rent. In the past, rent prices in these communities have tended to rise for a period of time after home prices have experienced a significant drop.

Investing in companies that have a significant presence in the rental property market can be a way to diversify your portfolio during a housing market downturn. Sun Communities, a company that owns and operates manufactured home communities and other rental properties, has seen its stock price drop by 30% in 2022. However, over the last five years, the company has consistently performed well, with a 56% gain for investors, not including dividends. Moreover, 10% increases in revenue is expected to be realized over the next half a decade. 

Sun Communities has a dividend yield of approximately 2.5%, which is similar to the average for the S&P 500 index. The company pays an annual dividend of $3.52 per share, which gives investors a reason to consider owning the stock even given a looking, or current, downturn in the housing market. 

Concerning Sun Communities 

Sun Communities is a real estate investment trust (REIT) that owns, operates, and has an interest in a portfolio of manufactured home (MH), marina properties,and recreational vehicle (RV). At the end of March 2022, the portfolio of the company included over 600 developed properties in close to 40 states, Puerto Rico, Canada, and the United Kingdom, with a total of nearly 160,000 developed sites and 60,000 wet slips and dry storage spaces. The properties owned by Sun Communities offer a wide range of storage and housing options.