Sectors & IndustriesReal EstateREIT - Residential

Best Residential REIT Stocks to Buy Now (2025)

Top residential reit stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best residential reit stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best residential reit stocks to buy right now are:

Invitation Homes (NYSE:INVH) is the #1 top residential reit stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Invitation Homes (NYSE:INVH) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Invitation Homes (NYSE:INVH) has a Due Diligence Score of 36, which is 13 points higher than the residential reit industry average of 23.

INVH passed 13 out of 38 due diligence checks and has average fundamentals. Invitation Homes has seen its stock lose -2.12% over the past year, underperforming other residential reit stocks by -18 percentage points.

Invitation Homes has an average 1 year price target of $35.86, an upside of 4.97% from Invitation Homes's current stock price of $34.16.

Invitation Homes stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Invitation Homes, 14.29% have issued a Strong Buy rating, 28.57% have issued a Buy, 57.14% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Apartment Investment & Management Co (NYSE:AIV) is the #2 top residential reit stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Apartment Investment & Management Co (NYSE:AIV) is: Value: D, Growth: C, Momentum: C, Sentiment: C, Safety: D, Financials: C, and AI: C.

Apartment Investment & Management Co (NYSE:AIV) has a Due Diligence Score of 4, which is -19 points lower than the residential reit industry average of 23.

AIV passed 2 out of 38 due diligence checks and has weak fundamentals. Apartment Investment & Management Co has seen its stock return 6.53% over the past year, underperforming other residential reit stocks by -10 percentage points.

Equity Lifestyle Properties (NYSE:ELS) is the #3 top residential reit stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Equity Lifestyle Properties (NYSE:ELS) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: C.

Equity Lifestyle Properties (NYSE:ELS) has a Due Diligence Score of 34, which is 11 points higher than the residential reit industry average of 23.

ELS passed 15 out of 38 due diligence checks and has average fundamentals. Equity Lifestyle Properties has seen its stock return 2.22% over the past year, underperforming other residential reit stocks by -14 percentage points.

Equity Lifestyle Properties has an average 1 year price target of $72.86, an upside of 10.79% from Equity Lifestyle Properties's current stock price of $65.76.

Equity Lifestyle Properties stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Equity Lifestyle Properties, 28.57% have issued a Strong Buy rating, 14.29% have issued a Buy, 57.14% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 11 residential reit stocks that have issued dividends in the past year, the 3 residential reit stocks with the highest dividend yields are:

Clipper Realty (NYSE:CLPR) has an annual dividend yield of 9.55%, which is 7 percentage points higher than the residential reit industry average of 3.03%. Clipper Realty's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Clipper Realty's dividend has shown consistent growth over the last 10 years.

Clipper Realty's dividend payout ratio of -152% indicates that its high dividend yield might not be sustainable for the long-term.

Brt Apartments (NYSE:BRT) has an annual dividend yield of 5.69%, which is 3 percentage points higher than the residential reit industry average of 3.03%. Brt Apartments's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Brt Apartments's dividend has shown consistent growth over the last 10 years.

Brt Apartments's dividend payout ratio of -192.3% indicates that its high dividend yield might not be sustainable for the long-term.

Nexpoint Residential Trust (NYSE:NXRT) has an annual dividend yield of 5.01%, which is 2 percentage points higher than the residential reit industry average of 3.03%. Nexpoint Residential Trust's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Nexpoint Residential Trust's dividend has shown consistent growth over the last 10 years.

Nexpoint Residential Trust's dividend payout ratio of 4,742.5% indicates that its high dividend yield might not be sustainable for the long-term.

Residential reit stocks were down -0.38% in the last day, and up 0.45% over the last week.

We couldn't find a catalyst for why residential reit stocks are down.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued residential reit stocks right now are:

Avalonbay Communities (NYSE:AVB) is the most undervalued residential reit stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Avalonbay Communities has a valuation score of 43, which is 26 points higher than the residential reit industry average of 17. It passed 3 out of 7 valuation due diligence checks.

Avalonbay Communities's stock has gained 16.03% in the past year. It has performed in line with other stocks in the residential reit industry.

Equity Lifestyle Properties (NYSE:ELS) is the second most undervalued residential reit stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Equity Lifestyle Properties has a valuation score of 14, which is -3 points higher than the residential reit industry average of 17. It passed 1 out of 7 valuation due diligence checks.

Equity Lifestyle Properties's stock has gained 2.22% in the past year. It has underperformed other stocks in the residential reit industry by -14 percentage points.

Essex Property Trust (NYSE:ESS) is the third most undervalued residential reit stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Essex Property Trust has a valuation score of 29, which is 12 points higher than the residential reit industry average of 17. It passed 2 out of 7 valuation due diligence checks.

Essex Property Trust's stock has gained 26.26% in the past year. It has overperformed other stocks in the residential reit industry by 10 percentage points.

64.71% of residential reit stocks rated by analysts are a buy right now. On average, analysts expect residential reit stocks to rise by 6.11% over the next year.

0% of residential reit stocks have a Zen Rating of A (Strong Buy), 0% of residential reit stocks are rated B (Buy), 68.42% are rated C (Hold), 26.32% are rated D (Sell), and 5.26% are rated F (Strong Sell).