Strong Second Quarter Performance: Equity Residential reported exceeding expectations in its second quarter results, reflecting sustained demand and a solid resident retention rate of 60%. The average household income of new residents increased 8.5% year-over-year, while rent as a percentage of income remains low at 20%. Blended rate growth was up 3%, driven by a robust renewal rate of 5.2%.

Positive Outlook for Urban Markets: The company is optimistic about the performance in urban markets like New York City and San Francisco, where supply has diminished and has resulted in strong revenue results. High occupancy rates in New York and significant rental growth in San Francisco (blended rate growth of 5.8%) indicate a recovery that could continue into 2026 as competitive supply remains manageable.

Reduced Acquisition Expectations: Equity Residential has lowered its acquisition guidance for the year from $1.5 billion to $1 billion, citing a competitive transaction market. The company anticipates matching sales and acquisitions this year, reflecting challenges in pricing with cap rates typically lower than expected relative to the cost of debt.