CHICAGO and ARLINGTON, VA. — Equity Residential (NYSE: EQR) and AvalonBay Communities (NYSE: AVB) have agreed to merge, creating the largest publicly traded apartment REIT in the United States with a combined portfolio of more than 180,000 rental apartments. The deal is expected to close in the second half of 2026, at which time the company’s new name and stock symbol will be announced.
Based on the National Multifamily Housing Council’s 2026 Top 50 Owners rankings, the owned portfolio of the newly combined AvalonBay and Equity Residential entity will exceed that of the current No. 1 owner, Greystar by more than 53,000 units.
The new REIT’s pro forma equity market capitalization will be approximately $52 billion with a total enterprise value of approximately $69 billion.
AvalonBay shareholders are expected to own 51.2 percent of the combined company, while Equity Residential shareholders will own 48.8 percent. AvalonBay President and CEO Benjamin Schall will serve as president and CEO of the combined company, which will maintain dual headquarters in Arlington, AvalonBay’s home office, and Chicago, where Equity Residential is based.
Affordable housing development and preservation will be a core focus of the new company. Affordable units currently are available in 30 percent of existing communities within the combined portfolio, representing about 7,200 affordable units.
The combined company plans to expand its affordable housing capabilities by establishing an affordable housing bridge loan facility for nonprofit developers, broadening nonprofit partnerships and launching a naturally occurring affordable housing preservation program designed to protect long-term affordability.
According to AvalonBay, the merger will maximize operational efficiencies bycombining investments in, for example, AI, automation and centralized-operations models. The merger also will accelerate development. Combined, the companies are backing approximately $4.4 billion in development for about 32 communities. According to a statement, the new company is expected to “meaningfully increase annual new development start activity.
Given the large scale of the two firms, the merger is expected to result in significant cost reductions. According to The Wall Street Journal (WSJ), AvalonBay and Equity Residential could save about $175 million in costs within 18 months after the transaction closes.
High development costs and slowing rent growth were two factors that led to the megamerger, according to the WSJ. Yardi Matrix data shows national apartment asking rents remained flat in 2025, at a zero percent year-over-year growth rate. AvalonBay Communities’ stock closed at $185.65 per share on May 22, compared with $192.36 one year prior. Equity Residential’s stock value was $66.20 at the close of business on May 22, compared with $65.37 on May 22, 2025.