AvalonBay Communities

Pricing power is healthy but not absolute, reflecting the nature of residential housing and regulatory overlays. In Q2 2025, same‑store residential revenue rose 3.0% and same‑store NOI 2.7% on roughly 96% economic occupancy, indicating stable demand and manageable concessions.

That said, expense growth (opex up 3.6% in Q2 and property taxes trending higher) tempers net pricing gains. Regulatory headwinds in certain coastal markets can limit rent increases on older assets, and new supply in select expansion markets can pressure renewal and new lease trade‑outs cyclically.

We view pricing power as resilient in the core coastal barbell of the portfolio, with less pricing power in recent expansion markets until supply normalizes.