5 Best Residential REITs to Buy in 2026

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1. Equity Residential (NYSE:EQR)

On May 14, 2026, UBS raised the firm’s price target on Equity Residential (NYSE:EQR) to $73 from $71 and maintained a Buy rating on the shares.

On May 20, 2026, Bloomberg reported that Equity Residential (NYSE:EQR) and AvalonBay Communities are nearing a potential merger agreement that would combine two of the largest REITs by market value. According to the report, a deal announcement could come as soon as Thursday. Equity Residential currently has a market capitalization of approximately $24.8B, while AvalonBay is valued at around $26B.

Last month, Equity Residential (NYSE:EQR) reported Q1 normalized FFO of 99c per share, versus the consensus estimate of 95c. Revenue totaled $779.85M, versus the consensus estimate of $784.24M. President and CEO Mark J. Parrell said the company entered 2026 with solid momentum, supported by stronger-than-expected operating performance in San Francisco and New York, where demand from higher-income renters and limited new apartment supply continued to support leasing trends. Management also said concession activity has continued to decline across its markets as new apartment supply is expected to moderate further over time, potentially setting up improved pricing power later in the year. Parrell added that broader housing shortages, stable rental demand, and a resilient U.S. economy continue to support the apartment market backdrop.

Equity Residential (NYSE:EQR) owns and manages apartment communities across major metropolitan markets in the United States.

While we acknowledge the potential of EQR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EQR and that has 100x upside potential, check out our report about the cheapest AI stock.

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