The case for residential REITs is becoming hard to ignore. Homeownership may still be the American dream, but data shows that America is still a renter's nation.
And recent data indicates that’s not likely to change anytime soon. Renter households continue to grow faster than homeowner households. According to Barron's:
"With house prices still high, mortgage rates stuck just under 7%, and plenty of economic uncertainty, consumers are once again seeing the virtues of renting. Over a third of respondents, 35%, told Fannie Mae in April that they would rent instead of buy if they had to move, the highest share since October and more than the long-term average of three in 10."
Residential REITs aren’t going to beat the growth opportunities that growth investors can get from stocks that are part of the artificial intelligence (AI) trade. However, they can be a solid choice for income-oriented investors, particularly at at a time when interest rates are coming down, which makes short-term Treasury bills less appealing.
In fact, REITs are required to pay a healthy percentage of their earnings to shareholders. That means the certainty of regular dividends. If you think that real estate investment trusts (REITs) may be right for you, here are three names to consider.
Residential REITS #1: Mid-America Apartment Communities
With a yield of just over 4.54%, Mid-America Apartment Communities (NYSE: MAA) is an attractive, oversold opportunity. The REIT focuses on apartment communities in the Southeast, Southwest and Mid-Atlantic regions of the U.S.
MAA stock is down 13.5% in 2025. However, the stock has risen approximately 5% since its earnings report on October 30. At that time, the company reported strong operating results with 95.6% physical occupancy, a 4.5% increase in renewals, and net delinquency at just 0.3%, indicating resilient demand and collections.
MAA also paid a dividend of $1.515 per share on October 31, July 31, April 30, and January 31. Its next dividend payment should come at the end of January 2026.
Residential REITs #2: Camden Property Trust
With a yield of about 4%, Camden Property Trust (NYSE: CPT) is one of the largest publicly traded multifamily companies in the United States. The company is primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. It also owns and operates 177 properties.
CPT stock is down about 9.8% in 2025. However, it’s up about 7% since October 31. Part of those gains is due to the company’s strong earnings report.
In its most recent earnings report, the company's funds from operations of $1.67 was in-line. Revenue of $395.68 million, up 2.2% year over year, missed by $2.86 million.
Camden Propery Trust has a high-yield dividend of 4.02%. It pays out $4.20 per share on an annual basis. The most recent dividend payment of $1.05 per share came on October 17, 2025.
Residential REITs #3: AvalonBay Communities
With a yield of 3.87%, AvalonBay Communities (NYSE: AVB) invests in apartments. It just declared a dividend of $1.75 per share, which will be paid on January 15 to shareholders of record as of December 31.
AVB stock is down about 18% in 2025, but has climbed about 3% since November 1. That corresponds to its earnings report on October 30. At that time, the company lowered its full-year core FFO guidance by $0.14 to $11.25, reflecting weaker same-store NOI and implied year-over-year earnings growth of about 2.2%.
Most recently, analysts at Barclays, Scotiabank, and Morgan Stanley raised their price targets on the AVB stock. Morgan Stanley raised its price target to $228 with an equal-weight rating on the stock. Scotibank raised its price target from $241 to $251.
