In this article, we will look at the 10 Best Residential REITs to Buy in 2026.
Residential REITs are getting more attention as the housing market remains difficult for buyers but still supportive for landlords. Elevated home prices, limited affordability, and a slower new-supply pipeline are keeping many households in the rental market for longer.
Principal Asset Management labels U.S. residential real estate as “High conviction,” saying “Fundamentals are improving as new supply has fallen to trend and demand is accelerating.” Nuveen makes a similar point, arguing that “Demographic shifts make living sector favorable” and that “U.S. apartment sector fundamentals are strengthening as new supply growth moderates.” In summary, the setup is less about a sudden housing boom and more about supply pressure easing at a time when rental demand remains intact. Janus Henderson adds that “REITs are in early recovery mode,” and “Valuations are at multi-decade lows” despite “consistent earnings growth and attractive dividend yields.” That gives the sector a valuation angle as well, not just a rent-growth story.
Against this backdrop, residential REITs deserve a closer look in 2026. The more interesting names are those with exposure to stronger rental markets, limited new supply, steady occupancy, and room for earnings growth. With that in mind, let’s take a look at the 10 Best Residential REITs to Buy in 2026.
Our Methodology
We used the Finviz screener to identify Residential REITs that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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10. AvalonBay Communities, Inc. (NYSE:AVB)
On May 20, 2026, Bloomberg reported that AvalonBay Communities, Inc. (NYSE:AVB) and Equity Residential are nearing a potential merger agreement that would combine two of the largest REITs by market value. AvalonBay currently has a market capitalization of about $26B, while Equity Residential is valued at roughly $24.8B.
On May 14, 2026, Scotiabank analyst Nicholas Yulico lowered the firm’s price target on AvalonBay Communities, Inc. (NYSE:AVB) to $187 from $190 and maintained a Sector Perform rating on the shares. The firm said it expects a slower recovery across Sunbelt apartment markets, estimating that excess supply from recent overbuilding could take several years to absorb.
Barclays also lowered the firm’s price target on AvalonBay Communities, Inc. (NYSE:AVB) to $203 from $206 while reiterating an Overweight rating. The firm updated its residential REIT models following Q1 earnings reports and said it believes apartment and single-family rental earnings growth could bottom in 2026, with share prices already reflecting much of that weakness.
Last month, AvalonBay Communities, Inc. (NYSE:AVB) reported Q1 core FFO of $2.83 per share, versus the consensus estimate of $2.80. Same-store residential revenue increased 1.6% year over year to $703.98M, while same-store residential operating expenses rose 4.7% to $224.04M. Same-store residential NOI increased 0.2% to $479.94M during the quarter.
AvalonBay Communities, Inc. (NYSE:AVB) is an equity REIT focused on developing, acquiring, redeveloping, and managing apartment communities across major U.S. metropolitan markets.
9. UDR, Inc. (NYSE:UDR)
On May 14, 2026, Scotiabank lowered the firm’s price target on UDR, Inc. (NYSE:UDR) to $38 from $39 and maintained a Sector Perform rating on the shares. The firm said it updated its outlook for U.S. multifamily REITs and continues to expect a slower recovery across Sunbelt apartment markets, where excess supply from recent overbuilding could take several years to absorb.
On May 11, 2026, Barclays lowered the firm’s price target on UDR, Inc. (NYSE:UDR) to $41 from $42 while maintaining an Overweight rating on the shares. The firm updated its residential REIT models following first-quarter earnings reports and said it expects apartment and single-family rental earnings growth to bottom in 2026, adding that REIT share prices may have already largely reflected that slowdown.
Last month, UDR, Inc. (NYSE:UDR) reported Q1 FFO as adjusted of 62c per share, in line with the consensus estimate. Revenue totaled $425.85M, versus the consensus estimate of $426.58M. Chairman, President, and CEO Tom Toomey said first-quarter same-store and FFOA results were generally in line with expectations, while the company continued using its capital allocation strategy to create shareholder value through property sales and stock repurchases. Management also announced that UDR became the first residential REIT to begin offering monthly dividends, a move the company said is intended to broaden investor access and align with growing interest in monthly income distributions.
UDR, Inc. (NYSE:UDR) is a multifamily REIT focused on owning, managing, acquiring, developing, and redeveloping apartment properties across targeted U.S. markets.
8. Essex Property Trust, Inc. (NYSE:ESS)
On May 18, 2026, JPMorgan analyst Anthony Paolone raised the firm’s price target on Essex Property Trust, Inc. (NYSE:ESS) to $275 from $272 while maintaining an Underweight rating on the shares.
Scotiabank also raised the firm’s price target on Essex Property Trust, Inc. (NYSE:ESS) to $282 from $278 and reiterated an Outperform rating. The firm said it continues to expect a slower recovery across Sunbelt apartment markets due to lingering oversupply conditions, but noted that Essex remains one of its preferred multifamily REIT names because of its exposure to Northern California markets.
Cantor Fitzgerald likewise raised the firm’s price target on Essex Property Trust, Inc. (NYSE:ESS) to $291 from $290 and maintained an Overweight rating on the shares. The firm updated its multifamily REIT models following first-quarter earnings reports and said that while new multifamily supply deliveries have started trending lower, elevated supply levels are still limiting landlords’ ability to generate stronger new lease pricing growth.
Last month, Essex Property Trust, Inc. (NYSE:ESS) reported Q1 FFO of $4.06 per share, versus the consensus estimate of $3.96. Same-property revenue and NOI increased 2.9% and 4.1%, respectively, compared to the prior-year quarter. Sequentially, same-property revenue improved 0.7% while NOI increased 1.3%.
Essex Property Trust, Inc. (NYSE:ESS) is a multifamily REIT focused on acquiring, developing, redeveloping, and managing apartment properties across selected West Coast markets.
7. Mid-America Apartment Communities, Inc. (NYSE:MAA)
On May 15, 2026, Morgan Stanley analyst Adam Kramer lowered the firm’s price target on Mid-America Apartment Communities, Inc. (NYSE:MAA) to $150 from $153.50 and maintained an Overweight rating on the shares.
On May 11, 2026, Barclays raised the firm’s price target on Mid-America Apartment Communities, Inc. (NYSE:MAA) to $139 from $137 while keeping an Equal Weight rating on the shares. The firm updated its residential REIT models following Q1 earnings reports and said it believes apartment and single-family rental earnings growth could bottom in 2026, adding that REIT share prices may have already reflected much of that slowdown.
Last month, Mid-America Apartment Communities, Inc. (NYSE:MAA) reported Q1 core FFO of $2.13 per share, versus the consensus estimate of $2.12. Revenue totaled $553.73M, versus the consensus estimate of $555.48M. President and CEO Brad Hill said the company was encouraged by first-quarter results, with core FFO exceeding expectations due in part to expense management efforts and strong resident retention trends. Management also noted that blended lease-over-lease pricing improved year over year for a fifth consecutive quarter, while demand remained solid across its portfolio as absorption continued to outpace new supply deliveries. Hill added that lower move-outs tied to home purchases helped drive resident turnover to the lowest trailing twelve-month level in company history, supporting the company’s outlook for improving supply-demand fundamentals across its markets.
Mid-America Apartment Communities, Inc. (NYSE:MAA) is a multifamily REIT focused on the ownership, development, redevelopment, acquisition, and management of apartment communities across the Southeast, Southwest, and Mid-Atlantic regions of the United States.
6. Invitation Homes Inc. (NYSE:INVH)
On May 18, 2026, Raymond James analyst Buck Horne upgraded Invitation Homes Inc. (NYSE:INVH) to Outperform from Market Perform with a $32 price target. The firm said it is seeing signs of improving leasing demand across the single-family rental market. Raymond James also pointed to a revised version of the 21st Century ROAD to Housing Act released by the House of Representatives, which the firm views as more favorable for the industry. According to the analyst, the updated bill removes a provision from the Senate version that would have required single-family rental operators to dispose of newly acquired build-for-rent homes after seven years, while still allowing operators to continue purchasing rental inventory from homebuilders.
Meanwhile, BofA analyst Jana Galan raised the firm’s price target on Invitation Homes Inc. (NYSE:INVH) to $35 from $34 and maintained a Neutral rating on the shares following quarterly results.
Last month, Invitation Homes Inc. (NYSE:INVH) reported Q1 FFO of 48c per share, in line with the consensus estimate. Revenue totaled $734M, versus the consensus estimate of $687M. Same-store NOI declined 0.3% year over year as 1.6% same-store core revenue growth was offset by a 5.7% increase in same-store core operating expenses. The company said results were also affected by lower same-store average occupancy, which declined to 96.3% from 97.2% a year earlier. CEO Dallas Tanner said the company delivered first-quarter results in line with expectations and entered the peak leasing season with improving occupancy trends and positive new lease rent growth in April. Management also noted that leasing one of its homes remains significantly more affordable than homeownership across its markets.
Invitation Homes Inc. (NYSE:INVH) owns and operates single-family rental homes across major U.S. housing markets.
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