10 Best REIT Stocks to Buy According to Billionaires

8. AvalonBay Communities, Inc. (NYSE:AVB)

Number of Billionaires: 10 

Number of Hedge Fund Holders: 37

Avalonbay Communities, Inc. (NYSE:AVB) is a leading multifamily REIT that develops, redevelops, acquires, and manages distinctive apartment homes in the US. It focuses on metropolitan areas with less housing affordability, a vibrant life quality, and strong employment growth. The REIT owned or held a direct or indirect ownership interest in 306 apartment communities in 12 states and the District of Columbia, as of December 31, 2024.

Avalonbay Communities, Inc. (NYSE:AVB) serves as the largest publicly traded multifamily REIT and has shown 30 years of growth as an industry leader. The REIT is focusing on delivering superior growth by optimizing its portfolio and increasing allocation to suburbs and expansion regions. The REIT advanced its portfolio optimization through a planned acquisition of eight apartment communities located in Texas, a transaction that is expected to double the size of the REIT’s portfolio in its Texas Expansion Regions. AvalonBay’s Chief Investment Officer, Matthew Birenbaum, reiterated the strategic move by saying:

“The assets are suburban garden communities with an average age of 11 years, providing a strong complement to our current and planned development activity with rents at a more affordable price point, and allowing for increased operating synergies as we increase our scale in these high-growth regions.”

The stock was recently downgraded at BMO Capital to Market Perform from Outperform with a price target of $220, on weaker demand in its home market and potentially increased costs. An increase in construction costs has been predicted based on an anticipated increase in lumber tariffs. Furthermore, deportation which can raise labor costs is also expected to affect class B and C rental demand thereby cutting the overall renter net absorption in AVB’s markets.