Best Residential REITs to Buy
Best Residential REITs to Buy
Residential real estate is particularly attractive to investors during periods of stock market volatility. Real estate classes like multifamily and single-family rental property provide stable cash flow because quality housing is always in demand.
Housing is not a luxury, it's a basic human need. While other sectors like technology and consumer discretionary can see large revenue swings during turbulent times, residential real estate generates consistent rental income. People need somewhere to live regardless of what the stock market or the economy is doing.
One of the best and most cost-effective ways to get exposure to that valuable asset class is by buying real estate investment trusts, or REITs, that specialize in residential rental property. Residential REITs are professionally managed by seasoned industry experts who have specialized knowledge in the field. Individual REITs can own hundreds of properties over a wide geographic area, providing retail investors with a level of diversification they couldn't otherwise achieve. REITs are convenient as well, trading on all the major stock market exchanges.
Shares of REITs can appreciate over time as their cash flow and the value of the properties they hold goes up. But, in addition to the very real potential for capital appreciation, REITs consistently pay attractive dividend yields. A REIT is required to distribute at least 90% of its taxable income back to shareholders as a dividend. That means a reliable income stream that can be very appealing, especially when interest rates are low or declining.
Also, REITs can be an excellent hedge against inflation. Inflation is down from its highs but is still a concern in 2025. A REIT can adjust its leases annually or sometimes more frequently, effectively passing on inflationary costs to its tenants. In some markets, that can mean annual rent increases of 3% to 5% or more. Income increases like that can come in handy when prices are rising.
Adding residential real estate REITs to your portfolio might be a very good idea right now. Here are seven of the best residential REITs to buy today:
REIT
Essex Property Trust Inc. (ticker:ESS)
AvalonBay Communities Inc. (AVB)
Invitation Homes Inc. (INVH)
UDR Inc. (UDR)
Mid-America Apartment Communities Inc. (MAA)
Camden Property Trust (CPT)
Sun Communities Inc. (SUI)
Housing is not a luxury, it's a basic human need. While other sectors like technology and consumer discretionary can see large revenue swings during turbulent times, residential real estate generates consistent rental income. People need somewhere to live regardless of what the stock market or the economy is doing.
One of the best and most cost-effective ways to get exposure to that valuable asset class is by buying real estate investment trusts, or REITs, that specialize in residential rental property. Residential REITs are professionally managed by seasoned industry experts who have specialized knowledge in the field. Individual REITs can own hundreds of properties over a wide geographic area, providing retail investors with a level of diversification they couldn't otherwise achieve. REITs are convenient as well, trading on all the major stock market exchanges.
Shares of REITs can appreciate over time as their cash flow and the value of the properties they hold goes up. But, in addition to the very real potential for capital appreciation, REITs consistently pay attractive dividend yields. A REIT is required to distribute at least 90% of its taxable income back to shareholders as a dividend. That means a reliable income stream that can be very appealing, especially when interest rates are low or declining.
Also, REITs can be an excellent hedge against inflation. Inflation is down from its highs but is still a concern in 2025. A REIT can adjust its leases annually or sometimes more frequently, effectively passing on inflationary costs to its tenants. In some markets, that can mean annual rent increases of 3% to 5% or more. Income increases like that can come in handy when prices are rising.
Adding residential real estate REITs to your portfolio might be a very good idea right now. Here are seven of the best residential REITs to buy today:
REIT
Essex Property Trust Inc. (ticker:ESS)
AvalonBay Communities Inc. (AVB)
Invitation Homes Inc. (INVH)
UDR Inc. (UDR)
Mid-America Apartment Communities Inc. (MAA)
Camden Property Trust (CPT)
Sun Communities Inc. (SUI)
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Re: Best Residential REITs to Buy
Essex Property Trust Inc. (ESS)
Essex Property Trust is a residential REIT that's a component stock of the S&P 500. The company is a fully integrated REIT, meaning all its business operations – from property selection to building management – are handled in-house.
ESS has a market cap of more than $20 billion. It buys and manages apartment buildings and develops large-scale multifamily projects from the ground up. Currently, the company has an equity interest in about 250 properties with about 62,000 individual units.
The company is based in San Mateo, California. Most of its properties are located in and around Los Angeles and in the Bay Area of California. ESS also has a significant presence in Seattle.
ESS concentrates on high-income renters working in the booming tech industry. Its strong financial fundamentals and high occupancy rates – above 95% – give it an enviable position in the industry.
Current yield: 3.4%
Essex Property Trust is a residential REIT that's a component stock of the S&P 500. The company is a fully integrated REIT, meaning all its business operations – from property selection to building management – are handled in-house.
ESS has a market cap of more than $20 billion. It buys and manages apartment buildings and develops large-scale multifamily projects from the ground up. Currently, the company has an equity interest in about 250 properties with about 62,000 individual units.
The company is based in San Mateo, California. Most of its properties are located in and around Los Angeles and in the Bay Area of California. ESS also has a significant presence in Seattle.
ESS concentrates on high-income renters working in the booming tech industry. Its strong financial fundamentals and high occupancy rates – above 95% – give it an enviable position in the industry.
Current yield: 3.4%
Re: Best Residential REITs to Buy
AvalonBay Communities Inc. (AVB)
AVB is a $31 billion residential REIT that owns and operates upscale apartment communities in major metro areas across the U.S. The company has a particular focus on New York, Boston and San Francisco, but also owns property in New England, the Mid-Atlantic states and the Pacific Northwest.
AvalonBay emphasizes high-quality properties with ample amenities in areas where rental demand is high and growing fast. This REIT builds communities, not just apartment buildings. It's known for offering new, clean units with premium features like fitness centers, pools, smart technology and open community spaces.
Income investors will be happy to know that AVB has been a reliable dividend stock, having consistently increased its income distributions over time.
Current yield: 3.2%
AVB is a $31 billion residential REIT that owns and operates upscale apartment communities in major metro areas across the U.S. The company has a particular focus on New York, Boston and San Francisco, but also owns property in New England, the Mid-Atlantic states and the Pacific Northwest.
AvalonBay emphasizes high-quality properties with ample amenities in areas where rental demand is high and growing fast. This REIT builds communities, not just apartment buildings. It's known for offering new, clean units with premium features like fitness centers, pools, smart technology and open community spaces.
Income investors will be happy to know that AVB has been a reliable dividend stock, having consistently increased its income distributions over time.
Current yield: 3.2%
Re: Best Residential REITs to Buy
Invitation Homes Inc. (INVH)
INVH is unique among residential REITs. It doesn't own or build apartment buildings; instead, it buys detached single-family homes, rehabs them and then rents them out at premium rates. INVH is, in fact, the largest single-family rental REIT in the country.
This REIT owns close to 85,000 houses in 16 major markets around the U.S. It targets suburban neighborhoods. The company's ideal tenants are small families who want the single-family home experience but have been priced out of the homeownership market.
INVH is a component of the S&P 500. The business plan of the company includes providing high-quality, completely updated homes in prime locations near schools, jobs and entertainment.
Current yield: 3.4%
INVH is unique among residential REITs. It doesn't own or build apartment buildings; instead, it buys detached single-family homes, rehabs them and then rents them out at premium rates. INVH is, in fact, the largest single-family rental REIT in the country.
This REIT owns close to 85,000 houses in 16 major markets around the U.S. It targets suburban neighborhoods. The company's ideal tenants are small families who want the single-family home experience but have been priced out of the homeownership market.
INVH is a component of the S&P 500. The business plan of the company includes providing high-quality, completely updated homes in prime locations near schools, jobs and entertainment.
Current yield: 3.4%
Re: Best Residential REITs to Buy
UDR Inc. (UDR)
UDR was founded in 1972 and went public as a REIT in 1986. This $16 billion company makes its headquarters in Highlands Ranch, Colorado.
The company's focus is developing and operating class-A multifamily apartment communities in growing population centers on the East and West coasts, the Sun Belt states and the greater Philadelphia area. These areas present high barriers to entry for real estate developers. UDR's established presence there gives them a strong competitive advantage.
UDR is the right residential REIT for investors looking for a good mix of yield and moderate growth potential. This company has less exposure to the sometimes volatile luxury market than some of its peers. The equity research division of Wells Fargo has an "overweight" rating on the stock based on its operational efficiency and its recent success in the Sun Belt.
Current yield: 3.8%
UDR was founded in 1972 and went public as a REIT in 1986. This $16 billion company makes its headquarters in Highlands Ranch, Colorado.
The company's focus is developing and operating class-A multifamily apartment communities in growing population centers on the East and West coasts, the Sun Belt states and the greater Philadelphia area. These areas present high barriers to entry for real estate developers. UDR's established presence there gives them a strong competitive advantage.
UDR is the right residential REIT for investors looking for a good mix of yield and moderate growth potential. This company has less exposure to the sometimes volatile luxury market than some of its peers. The equity research division of Wells Fargo has an "overweight" rating on the stock based on its operational efficiency and its recent success in the Sun Belt.
Current yield: 3.8%
Re: Best Residential REITs to Buy
Mid-America Apartment Communities Inc. (MAA)
MAA is a leading residential REIT with a strong and growing presence in America's Sun Belt region. The company stands out for its local expertise, superior execution, operational excellence and its history of consistent financial performance.
This $20 billion REIT focuses on multifamily properties in Dallas, Houston, Austin, Atlanta, Charlotte, Nashville, Orlando, Phoenix, Raleigh and Tampa. Concentrating on these fast-growing cities allows MAA to capitalize on demographic and economic trends that feature young adults moving from the coasts to more affordable locales.
MAA has equity interest in about 300 properties that include over 104,000 apartment units. In 2006, it launched its Interior Redevelopment Program, which involves renovating and modernizing its older, outdated units. Every year it rehabs thousands of units. The updated apartments can command significantly higher rents, resulting in sustainably higher cash flows.
Current yield: 3.6%
MAA is a leading residential REIT with a strong and growing presence in America's Sun Belt region. The company stands out for its local expertise, superior execution, operational excellence and its history of consistent financial performance.
This $20 billion REIT focuses on multifamily properties in Dallas, Houston, Austin, Atlanta, Charlotte, Nashville, Orlando, Phoenix, Raleigh and Tampa. Concentrating on these fast-growing cities allows MAA to capitalize on demographic and economic trends that feature young adults moving from the coasts to more affordable locales.
MAA has equity interest in about 300 properties that include over 104,000 apartment units. In 2006, it launched its Interior Redevelopment Program, which involves renovating and modernizing its older, outdated units. Every year it rehabs thousands of units. The updated apartments can command significantly higher rents, resulting in sustainably higher cash flows.
Current yield: 3.6%
Re: Best Residential REITs to Buy
Camden Property Trust (CPT)
Camden Property Trust is a $13 billion multifamily REIT that owns and operates about 175 properties with close to 60,000 rentable apartment units.
Camden has grown by developing apartment communities and by acquiring other real estate firms. Its most prominent acquisitions included Paragon Group and Oasis Residential. In recent years, it's been growing its portfolio by between 500 and 1,000 units annually.
Another thing that makes this company attractive is its development and construction pipeline. CPT has four properties under construction which, when completed, will add about 1,200 units to its inventory.
Current yield: 3.5%
Camden Property Trust is a $13 billion multifamily REIT that owns and operates about 175 properties with close to 60,000 rentable apartment units.
Camden has grown by developing apartment communities and by acquiring other real estate firms. Its most prominent acquisitions included Paragon Group and Oasis Residential. In recent years, it's been growing its portfolio by between 500 and 1,000 units annually.
Another thing that makes this company attractive is its development and construction pipeline. CPT has four properties under construction which, when completed, will add about 1,200 units to its inventory.
Current yield: 3.5%
Re: Best Residential REITs to Buy
Sun Communities Inc. (SUI)
When most investors think about residential real estate REITs, they think about single-family rentals or multifamily properties. SUI is a very different kind of company.
SUI operates manufactured home communities and RV parks and resorts. This $17 billion company owns more than 600 properties with over 140,000 mobile home sites and RV pads. SUI caters to older Americans looking for very affordable permanent housing or seasonal RV sites.
Sun Communities operates primarily in the U.S., but owns properties in Canada and the U.K. as well. Its core business centers around RVs and manufactured mobile homes, but the company also generates significant revenue in the boating and marina space. SUI owns about 48,000 wet slips, docks and dry boat storage spaces along popular lakes and waterways.
Owning SUI is an innovative way to participate in the residential real estate market while also diversifying away from traditional real estate asset classes.
Current yield: 2.9%
When most investors think about residential real estate REITs, they think about single-family rentals or multifamily properties. SUI is a very different kind of company.
SUI operates manufactured home communities and RV parks and resorts. This $17 billion company owns more than 600 properties with over 140,000 mobile home sites and RV pads. SUI caters to older Americans looking for very affordable permanent housing or seasonal RV sites.
Sun Communities operates primarily in the U.S., but owns properties in Canada and the U.K. as well. Its core business centers around RVs and manufactured mobile homes, but the company also generates significant revenue in the boating and marina space. SUI owns about 48,000 wet slips, docks and dry boat storage spaces along popular lakes and waterways.
Owning SUI is an innovative way to participate in the residential real estate market while also diversifying away from traditional real estate asset classes.
Current yield: 2.9%