Node.js is preferred for REST APIs because of its lightweight nature, high performance, and ability to handle multiple requests efficiently. Its ecosystem offers various tools for building APIs quickly.

Representational State Transfer (REST) APIs have become a standard in web development, allowing different software applications to communicate with each other over the internet. Node.js has emerged as a popular choice for building REST APIs due to several compelling reasons. Here’s an extensive look at why Node.js is favored for REST API development:

1. Lightweight Framework: Node.js is lightweight, allowing developers to create APIs with minimal overhead. This characteristic is particularly beneficial in REST API development, where efficiency is crucial. A lightweight framework means faster request processing and lower resource consumption, resulting in better performance and scalability.

2. High Performance: Node.js operates on a non-blocking, event-driven architecture, which allows it to handle many simultaneous requests without degrading performance. This is essential for REST APIs, which often need to serve multiple clients simultaneously. The ability to process requests asynchronously ensures that applications remain responsive, even under heavy load.

3. JSON as the Standard Data Format: Node.js natively uses JavaScript, which makes it seamless to work with JSON, the most widely used data format in REST APIs. The straightforward parsing and manipulation of JSON data in Node.js simplify the process of sending and receiving data between clients and servers.

4. Express.js Framework: The Express framework, built on top of Node.js, streamlines REST API development. It provides a simple and intuitive way to define routes, handle requests, and manage middleware. Developers can set up a REST API quickly and efficiently, reducing development time significantly.

5. Middleware Support: Express.js allows the use of middleware functions, which can be leveraged to add features to REST APIs. Middleware can handle tasks such as authentication, logging, and data validation, ensuring that APIs are secure and maintainable.

6. NPM Ecosystem: The Node Package Manager (NPM) provides a vast array of libraries and modules that can enhance REST API development. Developers can find packages for various functionalities, such as ORM libraries for database interactions, validation libraries, and tools for creating documentation, allowing them to build robust APIs quickly.

7. Scalability: REST APIs often experience varying levels of traffic, requiring the underlying architecture to scale accordingly. Node.js's ability to handle asynchronous requests and its support for clustering and load balancing enable developers to scale their APIs effortlessly. This ensures that applications can accommodate increased loads without compromising performance.

8. Real-Time Capabilities: Many modern applications require real-time capabilities, and Node.js excels in this area. Integrating real-time features like notifications or updates into REST APIs is straightforward, allowing developers to create dynamic applications that respond to user interactions immediately.

9. Error Handling and Debugging: Node.js provides robust error handling capabilities, essential for building reliable APIs. The ability to define error-handling middleware in Express simplifies the management of errors, ensuring that developers can catch and respond to issues effectively.

10. Cross-Platform Compatibility: Node.js runs on various platforms, making it easy to develop and deploy REST APIs across different environments. This flexibility allows teams to maintain consistent development workflows and utilize Node.js across various projects and teams.

In conclusion, Node.js's lightweight nature, high performance, and extensive ecosystem make it an ideal choice for building REST APIs. By leveraging its capabilities, developers can create efficient, scalable, and maintainable APIs that meet the demands of modern applications.