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EQR, AVB & CPT Updates Show Resilience Amid Market Softness
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Key Takeaways
U.S. apartment rents fell 0.2% annually in August, the first decline since March 2021.
Equity Residential reaffirmed full-year same-store revenue growth and high occupancy guidance.
AvalonBay reported NOI growth ahead of projections, with CPT performance tracking expectations.
The U.S. apartment market, which had demonstrated resilience in recent years, is beginning to show signs of softening. Mild rent cuts, easing occupancy and regional disparities highlight a shifting environment for landlords and investors alike.
Yet, the latest third-quarter operating updates from leading residential real estate investment trusts (REITs), such as Equity Residential (EQR - Free Report) , AvalonBay Communities (AVB - Free Report) , and Camden Property Trust (CPT - Free Report) , suggest that well-positioned operators continue to deliver steady performance.
Apartment Market Conditions: First Rent Cuts Since 2021
According to a RealPage report, U.S. apartment occupancy eased slightly in August 2025, dipping 10 basis points month over month to 95.4%. Occupancy was still 130 basis points higher than a year ago, reflecting some stability despite the month-to-month easing.
The trend in pricing is a bit disappointing. For the year ending August 2025, effective asking rents fell by 0.2% across the United States — the first annual rent cuts since March 2021 during the COVID-19 recession. While annual rent growth has been negligible for several quarters, this decline underscores the growing impact of supply pressures and shifting demand patterns.
The South and West regions accounted for much of the weakness, driven by elevated construction pipelines. The South, which has faced years of heavy supply additions, has not registered annual rent growth since mid-2023. The West also saw deeper cuts in August, pulling down national averages.
The RealPage report also noted that tourism-driven markets like Orlando and Las Vegas were hit, as consumers curtailed discretionary travel spending. Meanwhile, supply-heavy metros such as Austin, Denver, Phoenix, Dallas and Charlotte recorded some of the deepest rent reductions.
By contrast, coastal and high-barrier-to-entry markets continued to perform well. Tech-heavy hubs like San Francisco, San Jose and New York saw rents rise between 3% and 7% in the year-ending August. Strong gains also came from Chicago, Pittsburgh and Minneapolis, showing that demand remains healthy in select urban centers.
Operating Updates of Residential REITs
Equity Residential: Strong Retention and Occupancy
Equity Residential, which has an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin, recently reaffirmed that its operations remain within guidance. The REIT reported that its same-store revenue growth is on track, and it continues to expect to generate same-store revenue growth of 2.6% to 3.2% and physical occupancy of 96.4% for full-year 2025.
Additionally, EQR reaffirmed its blended rate growth forecast of 2.2% to 2.8% for the third quarter. The company noted about wrapping up its peak leasing season with sustained high occupancy levels and solid resident retention. EQR currently carries a Zacks Rank #3 (Hold).
AvalonBay Communities: NOI Outpacing Expectations
AvalonBay Communities also provided a constructive update, noting that same-store residential revenue growth for July and August 2025 was in line with expectations set when it published its current outlook. Importantly, same-store net operating income (NOI) is running ahead of projections year to date at 2.6%.
AvalonBay’s portfolio strategy combines established metropolitan markets — New England, New York/New Jersey, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California — with expansion into Raleigh-Durham and Charlotte, NC; Southeast Florida; Dallas and Austin, TX; and Denver, CO. AVB currently has a Zacks Rank# 3.
Camden Property Trust, which has greater exposure to Sun Belt markets, also reported that third-quarter performance through Sept. 3 is consistent with expectations set during its second-quarter earnings release. CPT currently has a Zacks Rank #3.
Here’s how the shares have performed in the past month:
Image Source: Zacks Investment Research
Wrapping Up
Despite signs of cooling in the U.S. apartment market, the latest updates from Equity Residential, AvalonBay and Camden Property Trust highlight the ability of well-positioned REITs to maintain stable growth and occupancy. While regional oversupply and softer demand weigh on rents in parts of the South and West, strength in high-barrier urban markets and disciplined portfolio strategies underscore the resilience of leading operators, suggesting that fundamentals remain intact even in a shifting environment.
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EQR, AVB & CPT Updates Show Resilience Amid Market Softness
Key Takeaways
The U.S. apartment market, which had demonstrated resilience in recent years, is beginning to show signs of softening. Mild rent cuts, easing occupancy and regional disparities highlight a shifting environment for landlords and investors alike.
Yet, the latest third-quarter operating updates from leading residential real estate investment trusts (REITs), such as Equity Residential (EQR - Free Report) , AvalonBay Communities (AVB - Free Report) , and Camden Property Trust (CPT - Free Report) , suggest that well-positioned operators continue to deliver steady performance.
Apartment Market Conditions: First Rent Cuts Since 2021
According to a RealPage report, U.S. apartment occupancy eased slightly in August 2025, dipping 10 basis points month over month to 95.4%. Occupancy was still 130 basis points higher than a year ago, reflecting some stability despite the month-to-month easing.
The trend in pricing is a bit disappointing. For the year ending August 2025, effective asking rents fell by 0.2% across the United States — the first annual rent cuts since March 2021 during the COVID-19 recession. While annual rent growth has been negligible for several quarters, this decline underscores the growing impact of supply pressures and shifting demand patterns.
The South and West regions accounted for much of the weakness, driven by elevated construction pipelines. The South, which has faced years of heavy supply additions, has not registered annual rent growth since mid-2023. The West also saw deeper cuts in August, pulling down national averages.
The RealPage report also noted that tourism-driven markets like Orlando and Las Vegas were hit, as consumers curtailed discretionary travel spending. Meanwhile, supply-heavy metros such as Austin, Denver, Phoenix, Dallas and Charlotte recorded some of the deepest rent reductions.
By contrast, coastal and high-barrier-to-entry markets continued to perform well. Tech-heavy hubs like San Francisco, San Jose and New York saw rents rise between 3% and 7% in the year-ending August. Strong gains also came from Chicago, Pittsburgh and Minneapolis, showing that demand remains healthy in select urban centers.
Operating Updates of Residential REITs
Equity Residential: Strong Retention and Occupancy
Equity Residential, which has an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin, recently reaffirmed that its operations remain within guidance. The REIT reported that its same-store revenue growth is on track, and it continues to expect to generate same-store revenue growth of 2.6% to 3.2% and physical occupancy of 96.4% for full-year 2025.
Additionally, EQR reaffirmed its blended rate growth forecast of 2.2% to 2.8% for the third quarter. The company noted about wrapping up its peak leasing season with sustained high occupancy levels and solid resident retention. EQR currently carries a Zacks Rank #3 (Hold).
AvalonBay Communities: NOI Outpacing Expectations
AvalonBay Communities also provided a constructive update, noting that same-store residential revenue growth for July and August 2025 was in line with expectations set when it published its current outlook. Importantly, same-store net operating income (NOI) is running ahead of projections year to date at 2.6%.
AvalonBay’s portfolio strategy combines established metropolitan markets — New England, New York/New Jersey, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California — with expansion into Raleigh-Durham and Charlotte, NC; Southeast Florida; Dallas and Austin, TX; and Denver, CO. AVB currently has a Zacks Rank# 3.
Camden Property Trust: Performance Tracking Guidance
Camden Property Trust, which has greater exposure to Sun Belt markets, also reported that third-quarter performance through Sept. 3 is consistent with expectations set during its second-quarter earnings release. CPT currently has a Zacks Rank #3.
Here’s how the shares have performed in the past month:
Image Source: Zacks Investment Research
Wrapping Up
Despite signs of cooling in the U.S. apartment market, the latest updates from Equity Residential, AvalonBay and Camden Property Trust highlight the ability of well-positioned REITs to maintain stable growth and occupancy. While regional oversupply and softer demand weigh on rents in parts of the South and West, strength in high-barrier urban markets and disciplined portfolio strategies underscore the resilience of leading operators, suggesting that fundamentals remain intact even in a shifting environment.