10 Best Residential Real Estate Stocks To Buy

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

Number of Hedge Fund Holders: 34

Avalonbay Communities, Inc. (NYSE:AVB) is a leading multifamily real estate investment trust that develops, redevelops, acquires, and manages apartment homes across 12 US states and Washington, DC. The company focuses on metropolitan areas that boast a vibrant quality of life, higher home prices, and strong employment growth.

Avalonbay Communities, Inc. (NYSE:AVB) operates its apartment communities under four core brands including Avalon which focuses on upscale apartment living and high-end amenities, eaves by Avalon for the cost-conscious segment, Kanso which offers simplicity with moderate pricing, and AVA which is targeted at those in high energy, transit-served neighborhoods. Hence, the firm uses strong brand differentiation to target multiple customer groups within its extensive geographic footprint.

The firm occupies a leadership position in the multifamily housing sector. It owns a well-established portfolio of 281 apartment communities with more than 87,000 units. This portfolio is focused on coastal markets that have delivered solid same-store net operating income growth.  While Avalonbay Communities, Inc. (NYSE:AVB) has an irreplaceable portfolio in established regions including New England, metro NY/NJ, Mid-Atlantic, Seattle, Northern, and Southern California, it is growing in other regions such as Raleigh-Durham, Southeast Florida, Denver, Dallas and Austin.

The company has also been benefitting from market conditions such as the strong inclination towards renting rather than buying a home and the low new supply in the firm’s suburban coastal markets. The company is also leveraging development capabilities to drive differentiated growth. Its development activity remains robust as it completed the development of 3 communities comprising 901 apartment homes during the three months ended June 30.

The unparalleled suburban coastal portfolio, superior competitive position among other multifamily residential REITs, and prevailing market dynamics make Avalonbay Communities, Inc. (NYSE:AVB) a good option to be considered among the best residential real estate stocks to buy. As of 2024’s second quarter, the stock is held by 34 hedge funds.