13 Best Housing Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 40

AvalonBay Communities, Inc. (NYSE:AVB) is one of the Best Housing Stocks to Buy According to Hedge Funds. On September 11, Truist upgraded the company’s stock to “Buy” from “Hold” with a price objective of $218, down from the prior target of $224, as reported by The Fly. As per the firm’s analyst, the shares are undervalued, as they are currently trading at a historically low funds from operations multiple. Furthermore, the analyst believes that AvalonBay Communities, Inc. (NYSE:AVB) will see healthy earnings growth with little new supply in its markets that can help in mitigating potentially soft national job growth.

Regarding the development activity, during the three and six months ended June 30, 2025, AvalonBay Communities, Inc. (NYSE: AVB) completed the development of Avalon Princeton on Harrison, located in Princeton, NJ. Avalon Princeton on Harrison has 200 apartment homes and was constructed for a total capital cost of $79,000,000. During the 3 months ended June 30, 2025, AvalonBay Communities, Inc. (NYSE:AVB) sold Avalon Wesmont Station I & II, 2 wholly-owned communities with 406 apartment homes as well as 18,000 square feet of commercial space, located in Wood-Ridge, NJ. The communities were sold for $161,500,000, leading to a gain in accordance with GAAP of $99,636,000 and economic gain of $71,648,000.