AvalonBay discussing merger with Equity Residential, Bloomberg reports

Arlington-based AvalonBay Communities is in early discussions about a potential merger with Chicago-based rival Equity Residential, Bloomberg has reported, citing people familiar with the matter.

The two companies are among the largest U.S. apartment REITs. If completed, the merger could reshape the U.S. apartment market, as the combined companies would control more than 180,000 apartment units nationwide.

According to Bloomberg, the merger talks are described as preliminary and may not result in a transaction. Given the size of the potential merger, the deal would likely face antitrust scrutiny.

Representatives for both companies did not respond to requests for comment Friday.

AvalonBay acquires, develops and manages multifamily communities across the country, primarily in metropolitan areas in New England, the Mid-Atlantic, the Pacific Northwest, and California. The company reported revenue of over $3.04 billion in 2025 and total assets of more than $22.19 billion.

As of Dec. 31, 2025, AvalonBay owned or held interests in 320 communities totaling nearly 99,000 apartment homes across 11 states and Washington, D.C. The company also had 24 communities under development, representing nearly 8,600 units.

On AvalonBay’s April 28 Q1 earnings call, President and CEO Benjamin W. Schall reported a positive first quarter of the year, including lower expenses and higher development net operating income. He noted that the company anticipates $47 million in development NOI this year and an increase to $120 million in 2027.

Meanwhile, Equity Residential owns and manages 312 rental properties totaling about 85,200 apartment units across major U.S. metro areas, with a primary focus on coastal markets and a growing presence in cities such as Atlanta, Austin, Dallas-Fort Worth and Denver. The company reported approximately $3.09 billion in revenue in 2025 and about $20.7 billion in total assets as of Dec. 31, 2025.

The two companies previously partnered in 2013 to acquire Archstone from Lehman Brothers in a deal valued at approximately $16 billion.