AvalonBay downgraded to Peer Perform from Outperform at Wolfe Research

Wolfe Research analyst Andrew Rosivach downgraded AvalonBay to Peer Perform from Outperform without a price target. The apartment sector is in a “difficult spot” heading into 2024. and AvalonBay has a coastal portfolio that will likely see slower demand due to “several reasons,” the analyst tells investors in a research note. The firm is seeing slowing employment growth, declining demographics for the prime renter cohort, and a wide gap between rent to income.