Raymond James Lifts Essex Property (ESS) from Market Perform to Outperform

Essex Property Trust, Inc. (NYSE:ESS) is one of the best residential REITs to buy. On June 24, Raymond James upgraded Essex Property from Market Perform to Outperform, while lowering the rating for Mid-America Apartment Communities, Inc. (NYSE:MAA) to Market Perform from Outperform. Raymond James attributed these changes to persistent softening in rent growth and current valuation differentials.

Essex benefits from its strong presence in tech-focused West Coast markets, which continue to lead national rent growth. Analysts noted that as of mid-June 2025, asking rents in San Francisco, San Jose, and Seattle had increased by 4.2%, 4.2%, and 2.5%, respectively.

An exterior view of a modern retail property, embodying a landlord’s real estate investment.

Analysts consider Essex relatively safe from supply pressures impacting Sun Belt markets and suggest its conservative guidance allows room for upside. The firm noted improved cash delinquencies and early signs of rent growth recovery in Oakland, adding that Essex’s cost of capital advantage could be a key asset in the second half of the year if attractive investment opportunities emerge.

Overall, Raymond James adopts a neutral to cautious outlook on most multifamily REITs, citing irregular seasonal leasing softness and unsteady rent growth across markets as factors limiting short-term visibility.

Essex Property Trust, Inc. (NYSE:ESS) is an REIT specializing in the acquisition, development, and management of multifamily residential properties in select West Coast markets.

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