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U.S. Real Estate Sector Analysis

UpdatedJan 13, 2026
DataAggregated Company Financials
Companies287
  • 7D0.9%
  • 3M-0.2%
  • 1Y3.7%
  • YTD1.5%

The Real Estate is pretty flat in the last 7 days, but Public Storage has stood out, gaining 7.0%. The past year has been better, since the industry has gained 3.7% in that time. As for the next few years, earnings are expected to grow by 11% per annum.

Sector Valuation and Performance

Has the U.S. Real Estate Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 14 Jan 2026US$1.5tUS$333.2bUS$32.5b29.2x46.9x4.6x
Fri, 12 Dec 2025US$1.5tUS$338.2bUS$32.8b29.6x46.4x4.5x
Sun, 09 Nov 2025US$1.5tUS$338.2bUS$32.9b28.4x46.7x4.5x
Tue, 07 Oct 2025US$1.6tUS$331.8bUS$31.0b28.4x50.3x4.7x
Thu, 04 Sep 2025US$1.5tUS$331.5bUS$30.9b29.6x49.3x4.6x
Sat, 02 Aug 2025US$1.5tUS$329.9bUS$30.1b28.9x49.5x4.5x
Mon, 30 Jun 2025US$1.4tUS$326.1bUS$29.7b29.6x48.5x4.4x
Wed, 28 May 2025US$1.5tUS$326.6bUS$29.8b28.1x49x4.5x
Fri, 25 Apr 2025US$1.5tUS$321.6bUS$28.6b29.3x51x4.5x
Sun, 23 Mar 2025US$1.5tUS$321.4bUS$29.0b31.5x52x4.7x
Tue, 18 Feb 2025US$1.6tUS$323.1bUS$28.0b32.4x56.4x4.9x
Thu, 16 Jan 2025US$1.5tUS$320.0bUS$27.4b30.9x54.6x4.7x
Sat, 14 Dec 2024US$1.6tUS$320.0bUS$27.4b33.8x58.5x5x
Mon, 11 Nov 2024US$1.6tUS$319.6bUS$27.3b34.9x59.9x5.1x
Wed, 09 Oct 2024US$1.6tUS$314.7bUS$26.7b33x60.1x5.1x
Fri, 06 Sep 2024US$1.6tUS$314.8bUS$27.1b34.4x59.1x5.1x
Sun, 04 Aug 2024US$1.5tUS$312.9bUS$27.0b33x56.9x4.9x
Tue, 02 Jul 2024US$1.4tUS$305.7bUS$27.1b30.8x51.5x4.6x
Thu, 30 May 2024US$1.4tUS$306.4bUS$27.6b29.5x49.2x4.4x
Sat, 27 Apr 2024US$1.3tUS$307.1bUS$28.0b29.1x47.6x4.3x
Mon, 25 Mar 2024US$1.4tUS$306.1bUS$28.0b30.6x49.9x4.6x
Wed, 21 Feb 2024US$1.4tUS$306.0bUS$27.8b29.8x50.1x4.5x
Fri, 19 Jan 2024US$1.4tUS$323.1bUS$26.7b30.4x54.4x4.5x
Sun, 17 Dec 2023US$1.5tUS$323.1bUS$26.5b30.9x56.7x4.7x
Tue, 14 Nov 2023US$1.3tUS$323.0bUS$26.5b26.9x48.8x4x
Thu, 12 Oct 2023US$1.3tUS$325.2bUS$31.5b26.9x42x4.1x
Sat, 09 Sep 2023US$1.4tUS$323.9bUS$31.7b28.5x44.1x4.3x
Mon, 07 Aug 2023US$1.4tUS$323.7bUS$32.4b29.4x43.5x4.4x
Wed, 05 Jul 2023US$1.5tUS$325.1bUS$34.4b24.8x43.1x4.6x
Fri, 02 Jun 2023US$1.3tUS$314.7bUS$35.5b23.3x36.9x4.2x
Sun, 30 Apr 2023US$1.4tUS$316.5bUS$35.9b23.9x37.8x4.3x
Tue, 28 Mar 2023US$1.3tUS$315.6bUS$38.2b23x33.8x4.1x
Thu, 23 Feb 2023US$1.4tUS$307.2bUS$41.8b24.2x33.7x4.6x
Sat, 21 Jan 2023US$1.4tUS$311.3bUS$44.4b25x31.9x4.5x
Price to Earnings Ratio

31.9x


Total Market Cap: US$1.4tTotal Earnings: US$44.4bTotal Revenue: US$311.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Real Estate Sector Price to Earnings3Y Average 49.2x202420252026
Current Industry PE
  • Investors are relatively neutral on the American Real Estate industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 49.2x.
  • The industry is trading close to its 3-year average PS ratio of 4.5x.
Past Earnings Growth
  • The earnings for companies in the Real Estate industry have declined 10% per year over the last three years.
  • Meanwhile revenues for these companies have grown 2.3% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.S. Real Estate sector?

US Market0.88%
Real Estate0.89%
REITS2.57%
Office REITs1.86%
Specialized REITs1.79%
Hotel and Resort REITs1.63%
Health Care REITs1.37%
Retail REITs1.07%
Industrial REITs0.31%
Real Estate0.22%
Residential REITs-1.44%
Industry PE
  • Investors are most optimistic about the Health Care REITs industry which is trading above its 3-year average PE ratio of 328x.
    • Analysts are expecting annual earnings growth of 28.4%, which is lower than the prior year's growth of 33.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Real Estate industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings growth rate of 16% per year.
  • In contrast, the Office REITs industry is expected to see its earnings decline by 14% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
PLD PrologisUS$130.222.2%
+US$2.6b		20.4%PB2.3x
IRM Iron MountainUS$92.138.5%
+US$2.1b		-11.4%PE171x
WELL WelltowerUS$188.251.4%
+US$1.8b		48.4%PB3.3x
PSA Public StorageUS$279.833.5%
+US$1.7b		-3.5%PB9.9x
O Realty IncomeUS$59.233.2%
+US$1.7b		11.4%PB1.4x

Latest News

EQR
US$60.19
Equity Residential
7D
-3.6%
1Y
-13.9%
O
US$59.23
Realty Income
7D
3.2%
1Y
11.4%
CBRE
US$164.71
CBRE Group
7D
-1.3%
1Y
31.9%
PLD
US$130.22
Prologis
7D
2.2%
1Y
20.4%

PLD: Fair Valuation Balances Earnings Guidance With Industrial Leasing Fundamentals

Narrative Update on Prologis The analyst price target underpinning our Prologis narrative has edged higher by about $1.50 to $133.40, reflecting analysts' generally higher targets and their focus on modestly stronger margin and valuation assumptions for industrial REITs after recent sector research. Analyst Commentary Recent research on Prologis presents a mix of optimism and caution, with several firms adjusting price targets higher while also flagging valuation and growth expectations as key swing factors for returns from here.
EXR
US$140.50
Extra Space Storage
7D
3.7%
1Y
-5.6%

EXR: Slower Recovery And New Partnership Shape Balanced Future Prospects

The analyst price target for Extra Space Storage has shifted slightly lower to about $151.85 from $154.15, as analysts factor in softer projected revenue growth, a modestly lower profit margin profile, and expectations that its P/E multiple could align more closely with peers following recent sector downgrades and target cuts. Analyst Commentary Recent research reflects a mixed but generally more cautious stance on Extra Space Storage, with target prices trimmed and expectations reset around revenue growth and valuation multiples relative to key peers.
ELME
US$2.86
Elme Communities
7D
-83.6%
1Y
-80.6%

ELME: Liquidation Plan And $14.67 Distribution Will Drive Future Cash Returns

Analysts have maintained their fair value estimate for Elme Communities at $18.00. They cite a higher discount rate of 10.73%, slightly stronger profit margin assumptions at 17.23%, and a very high forward P/E of about 252x as key factors behind the unchanged price target.
AVB
US$178.81
AvalonBay Communities
7D
-2.7%
1Y
-18.1%

AVB: Share Repurchases And 2026 REIT Turnaround Expectations Will Support Returns

Analysts have trimmed their price targets on AvalonBay Communities by a few dollars, with recent cuts to about $190 to $197 reflecting softer leasing trends and higher operating expenses, even as they continue to highlight the potential for REITs to benefit from improving macro conditions into 2026. Analyst Commentary Recent research updates on AvalonBay Communities point to a mixed setup, with modestly lower price targets clustered around the low to high $190s and a consistent message of Neutral or similar ratings.
PSA
US$279.83
Public Storage
7D
3.5%
1Y
-3.5%

PSA: Higher Net Operating Income Run Rate Will Drive Future Multiple Expansion

Narrative Update on Public Storage The analyst price target for Public Storage has been trimmed by about $4 to reflect slightly lower modeled fair value, revenue growth, profit margin, and future P/E assumptions, as analysts factor in more muted self storage growth expectations and recent Street price target cuts. Analyst Commentary Recent research on Public Storage and its peers points to a more mixed setup for the self storage group, with price targets coming down but earnings inputs and valuation views staying relatively constructive in some cases.
CSGP
US$61.82
CoStar Group
7D
-8.0%
1Y
-11.2%

CSGP: New Buyback And Reduced Rival Pressure Will Drive Future Upside

Analysts have trimmed their price targets on CoStar Group, reducing fair value estimates from about $91.94 to $84.82 as they factor in lower long term guidance, a slightly higher discount rate, slower projected revenue growth, and a lower future P/E multiple, partly offset by a modestly higher expected profit margin and the new $1.5b buyback plan. Analyst Commentary Recent research paints a mixed picture for CoStar Group, with analysts splitting between confidence in the long term and concern about execution risk and valuation after the updated 2026 and medium term outlook.
SPG
US$184.38
Simon Property Group
7D
-1.0%
1Y
6.2%

SPG: Future Returns Will Reflect Redevelopment Progress And Anticipated 2026 REIT Turnaround

Narrative Update Our analyst price target framework for Simon Property Group now points to a fair value of US$194.05, a modest US$0.60 adjustment. This reflects analysts factoring in updated REIT models and recent target increases from several firms, which are tied to expectations for a sector turnaround and solid Q3 earnings season commentary.
IRM
US$92.13
Iron Mountain
7D
8.5%
1Y
-11.4%

IRM: Short Seller Accounting Allegations Will Drive Bearish Repricing Ahead

Analysts have lifted their Iron Mountain price target to US$123 from US$122, citing updated company modeling and confidence that recent short-seller concerns are already well understood and unlikely to alter the long term growth narrative. Analyst Commentary Recent research comments around Iron Mountain have centered on how much weight to place on the short report and what it means for long term execution and growth risks.
DLR
US$160.71
Digital Realty Trust
7D
2.5%
1Y
-7.6%
WELL
US$188.25
Welltower
7D
1.4%
1Y
48.4%
INVH
US$26.23
Invitation Homes
7D
-6.7%
1Y
-15.2%

INVH: Softer Near Term Rent Trends Will Set Up Stronger 2026 Demand

Analysts have trimmed their fair value estimate for Invitation Homes slightly to about $34.48, in line with recent Street price target cuts of US$3 at Oppenheimer and US$1 at Evercore ISI, as they factor in a more conservative near term outlook for rent, occupancy, and blended rate growth. Analyst Commentary Recent research updates point to a more cautious stance in the near term, even as analysts maintain generally constructive views on Invitation Homes over a longer horizon.
AMT
US$173.96
American Tower
7D
-1.1%
1Y
-2.7%
EQIX
US$801.31
Equinix
7D
1.7%
1Y
-10.8%