Essex Property Trust

Essex demonstrated mid‑single‑digit same‑property revenue and NOI growth in 2025 (3.3% and 3.2% respectively), with 2026 same‑property revenue guidance at a 2.4% midpoint. Regulatory caps limit outsized rent increases in California (AB 1482 restricts annual increases to 5% plus CPI, up to a 10% ceiling).

These factors constrain peak‑cycle pricing but stable demand, improving delinquency, and lower concessions in late 2025 support moderate pricing power. Pricing upside should improve as new supply fades in 2026–2027, especially in Northern California. Overall we see solid but bounded pricing power due to regulation and affordability dynamics.