Goldman Sachs analyst Julien Blouin has initiated coverage of several multifamily and single-family rental REITs, offering insights into the future of the residential real estate sector.
Blouin initiated coverage with a Buy rating for three single-family REITs: Invitation Homes Inc. (INVH) with a price target of $46, Mid-America Apartment Communities, Inc. (MAA) with a price target of $187, and American Homes 4 Rent (AMH) with a price target of $48.
Blouin believes that strong demand, fueled by demographic shifts, affordability concerns, and migratory trends, will drive re-accelerating same-store revenue growth for single-family REITs like AMH and INVH in 2025 and 2026. This growth is anticipated as competitive rental supply pressures ease. In particular, Blouin expects AMH and INVH to experience the highest same-store revenue growth among the stocks covered in 2025. Furthermore, Blouin highlights AMH’s upcoming development projects, which he believes will contribute to superior external growth for the company.
On the other hand, Blouin initiated coverage on Camden Property Trust (CPT), Equity Residential (EQR), and Essex Property Trust, Inc. (ESS) with a Neutral rating, setting price targets of $139, $81, and $318, respectively. Blouin forecasts that rent growth in ESS’s markets will remain strong, driven by improving migration trends in the company’s suburban areas. However, he anticipates a significant supply challenge for EQR in its urban submarkets.
Blouin also initiated coverage on UDR, Inc. (UDR) with a Sell rating and a price target of $42. While Blouin expects strong rent growth for UDR due to improving migration in suburban areas, he anticipates this to be partially offset by outmigration from urban areas. Additionally, Blouin projects that same-store expense growth for UDR will be in the low 4% range, slightly above consensus.
Overall, Blouin believes that the declining supply within the residential REIT sector is creating a favorable growth environment. He anticipates sharper declines in supply for Sunbelt multifamily REITs, driving accelerating same-store revenue growth, despite moderating suburban migration.
