Real estate investment trusts are betting big on New York apartments. With the city's housing shortage showing no sign of easing, REITs are acquiring residential towers, wagering that scarce supply guarantees steady rents for years.

The fictional trust Empire Residential has assembled a portfolio of buildings across Manhattan and Queens, pitching investors on the reliability of demand. Its managers argue that few markets offer such a dependable floor under rents.

Tenant advocates view the trend warily, worried that large institutional owners prioritize returns over residents. As more of the city's housing falls under corporate ownership, the question of who profits from the shortage grows sharper.