AvalonBay Communities owns a portfolio of 296 apartment communities with more than 90,000 units and is developing 24 additional properties with approximately 8,600 units. The company focuses on owning large, high-quality properties in major metropolitan areas of New England, New York/New Jersey, Washington, D.C., California, and the Pacific Northwest.

AvalonBay Communities Inc. is a real estate investment trust that develops, owns, and operates apartment communities. The company was founded in 1978 and focuses on upper-tier apartments with amenities. In 2Q26, the company announced a proposed merger with rival Equity Residential. AVB's portfolio has a concentration in New England, New York/New Jersey, and California but has assets in 20 markets, 12 states, and Washington, D.C. Apartment communities are varied, with luxury high-rise urban buildings and smaller communities in suburban areas. Of same-store apartments, 40% are located in California, and 16% are located in New York/New Jersey. Revenues in 2025 were about $3.04 billion, of which 99% were from rental income, with the remainder from management fees. Commercial revenues in 2025 were $40 million. At the end of 1H26, the REIT has about 319 communities containing over 98,300 apartments, concentrated in high-wage regions. First-ring suburban assets have performed well, and future expansion is focused on new suburban areas with added ground-floor retail space. AVB shares are a component of the S&P 500, and the company's market cap is about $27 billion.

Earnings season is in full swing, with this week being the biggest, by market cap, week of all. And then there is a Fed rate decision in the mix. Last week, the Dow Jones Industrial Average was flat, the S&P 500 lost 1%, and the Nasdaq shed another 2% (after losing 3% the week before). Year to date, all three indices are in positive territory. The DJIA and the S&P 500 are higher 8%, while the Nasdaq is up 7%. Earnings season is in its third week and nearly 900 companies are on the list to report. Headliners include Visa, Coca Cola, Seagate Technology, Boeing, and UPS on Tuesday; Microsoft, Meta Platforms, SK Hynix, Procter & Gamble, and Starbucks on Wednesday; Apple, Amazon, Mastercard, Anheuser-Busch, and Bristol-Myers Squibb on Thursday; and ExxonMobil and Chevron on Friday. Only 26% of S&P 500 companies had reported as of Friday and earnings so far are up a whopping 39% from last quarter. Energy and Communication Services are leading the charge, while Healthcare is at the low end. On the economic calendar, there are two big reports of note -- both due on Wednesday: GDP and inflation indicator PCE (Personal Consumption Expenditures). Turning to economic data, gas prices ticked up last week, rising 16 cents to an average of $4.00 per gallon for regular gas. Meanwhile, the Atlanta Fed GDPNow calls for GDP growth of 1.7% for 2Q, unchanged from last week but down from 3.0% a few weeks ago. The Cleveland Fed Inflation Nowcast forecasts CPI of 3.4% for July, up one tick from last week. Mortgage rates rose another three basis points last week, with the average 30-year fixed-rate mortgage now at 6.58%, according to FreddieMac. As mentioned above, the Federal Open Market Committee (FOMS) rate decision is on Wednesday. Odds are at 38% for a rate hike, much higher than 17% last week. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 7% year to date, while the leading emerging market ETF (EEM) is up 15%. U.S. growth stocks are down 1% year to date based on ETF IWF, while value stocks (IWD) are up 17%. Crude oil prices continue to be volatile. On Friday, oil closed at $90 per barrel and is up 27% for the year. In other asset classes, AGG bonds are down 3% year to date, gold is down 7%, and Bitcoin is down 28%. The U.S. dollar is up 3%, tracking DXY. The VIX Volatility Index was at about 19 on Friday, below its historical average of 20. Turning to sector performance, the list from first to worst so far in 2026 is Energy (+33%), Information Technology (+24%), Industrials (+17%), Real Estate (+11%), Materials (+11%), Utilities (+8%), Consumer Staples (+7%), Healthcare (+4%), Financials (+2%), Consumer Discretionary (-9%), and Communication Services (-10%).

AvalonBay Communities owns a portfolio of 296 apartment communities with more than 90,000 units and is developing 24 additional properties with approximately 8,600 units. The company focuses on owning large, high-quality properties in major metropolitan areas of New England, New York/New Jersey, Washington, D.C., California, and the Pacific Northwest.