REITs: March MSA-Level Jobs Data Shows Relative Sunbelt Strength and DC Weakness

Research evidence excerpt

REITs: March MSA-Level Jobs Data Shows Relative Sunbelt Strength and DC Weakness

Truist Securities

Equity Research Report May 20, 2026

REAL ESTATE INVESTMENT TRUSTS

REITs: March MSA-Level Jobs Data

Shows Relative Sunbelt Strength and DC Michael Lewis, CFA

212-319-5659 Weakness Michael.R.Lewis@truist.com

What’s Incremental to Our View: The BLS released March MSA level employment

data yesterday. This note organizes some of it for the 40 largest MSAs and explores

Anthony Hau which REITs were experiencing the most/least favorable labor conditions in their

212-303-4176 markets. Figures 1 and 9 reflect continued Sunbelt job growth and generally improving Anthony.Hau@truist.com

California results. The REITs with the weakest YOY job growth in their footprints

have high DC Metro concentration (or Boston/New York exposure). Leading indicators

Kyle Bonci suggest a potentially low-hire/low-fire employment backdrop this summer.

914-419-9491

Kyle.Bonci@truist.com

Deniz Gunaydin

212-326-6074

Deniz.Gunaydin@truist.com

Alex Murphy

212-319-2173

Alex.Murphy@truist.com

16 Page Document

Reasons for this report

✓ Sector Update

✓ BLS released MSA-level employment Three Texas markets (Dallas, Austin, Houston), along with Orlando, Nashville, and

statistics for March 2026 San Diego, each ranked in the top 10 among the nation’s 40 largest markets in

terms of both YOY and MOM job growth as of March. Dallas remains a particularly

notable job creator, leading the top 40 largest markets in month-over-month growth,

ranking 6th in YOY growth, and adding 507K jobs since February 2020 when the

COVID-19 pandemic began in the U.S. in earnest. Houston added the second-most

jobs over that period at 297K.

Washington DC again lost the most jobs YoY, despite adding a small number

MoM.