U.S. REITs were created by Congress in 1960 with the aim of providing all investors, particularly small ones, with the opportunity to invest in income-producing real estate. Since then, the U.S. REIT model has thrived and has become a blueprint for approximately 40 countries worldwide.

On September 14, 1960, President Dwight D. Eisenhower signed legislation introducing a new approach to investing in income-producing real estate. This approach combined the favorable aspects of real estate and stock-based investments.

For the first time, REITs made the advantages of commercial real estate investment accessible to ordinary Americans, benefits that were previously only accessible through large financial institutions and wealthy individuals. The groundwork for the Modern REIT Era was laid with the Tax Reform Act of 1986, which granted REITs the ability to manage and operate real estate, rather than solely owning or financing it.

Over the years, the REIT approach to real estate investment has evolved and improved.

The original intention behind the legislation was to create an inclusive investment approach, allowing all Americans to benefit from investing in top-notch commercial real estate. While the REIT model has seen refinement and enhancement since its inception, the goal of inclusivity remains fundamental to its framework. Research conducted by Nareit demonstrates that REITs have successfully fulfilled this objective. Today, approximately 170 million Americans are part of the nearly 50% of American households that own REIT stocks, either directly or indirectly through mutual funds, ETFs, or target date funds.

REITs have gained traction globally, with 40 countries, including all G-7 nations and nearly two-thirds of OECD countries, implementing a REIT regime. This expansion means that investors worldwide now have opportunities to invest in portfolios of income-producing real estate.

Furthermore, the REIT industry is evolving to become more diverse and inclusive, with an increasing number of women and diverse individuals serving on boards. Nareit is dedicated to advancing this progress by educating and informing its members about these important issues through initiatives like the Dividends Through Diversity & Inclusion (DDI) Initiative.