AvalonBay Communities builds and rents apartment buildings in the U.S. The company focuses on developing upscale housing for higher-income families in 10 states and the District of Columbia. AvalonBay owns around 43,000 units and enjoys an average rent per unit of around $1,400 per month compared to $650 on average in the U.S.
AvalonBay is intricately tied to interest rate tides, which have several important effects:
AvalonBay attempts to mitigate these effects by appealing to a higher-income consumer base that is less likely to be affected by macro-economic shifts. The company also tries to build a competitive advantage by limiting development to urban and suburban geographic regions with high barriers-to-entry, either because land is in scarce or zoning laws are especially difficult to navigate.
Below are several metrics of operating performance for the company. The company has been able to steadily increase its rental revenue per apartment unit over time, fighting inflation and driving organic growth. It has also increased its apartment unit base as shown in the chart below. 
The company competes against a wide array of other apartment rental owner/operators. The National Multi Housing Council estimates that around 17 million apartment units exist nationwide. The median rental income per unit is around $650 per month.
The market for multi-family housing is highly fragmented geographically as well as within any given region. To the left are industry statistics for each of the major markets of publicly traded apartment REITs. The company’s real estate portfolio is highly diversified across geographic region, and operates in nearly every state. Based on data compiled by the National Multi Housing Council, the company was the largest operator of apartment units across the nation.
Furthermore, below is a table of relevant competitive data as compared to rival or comparable companies:
|Company||Apt. Units (2006)||Addressable Market (Units)||Local Market Share||National Market Share||Occupancy Rate (2006)||Operating Margin||Revenue/unit|