AvalonBay (AVB) and Equity Residential Near Merger Agreement

AvalonBay Communities, Inc. (NYSE:AVB) is one of the 10 Best Residential REITs to Buy in 2026.

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.

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