AVBNEUTRAL

Gross Margin

67.7%

Higher than 17% of Real Estate sector peers

Updated 1928h ago

Sector Performance

17th percentile

AVB

67.7%

Sector Median

72.5%

Sector Avg

70.2%

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Deep Analysis

AvalonBay Communities’ gross margin of 67.7% means that after subtracting the direct costs of operating its apartment properties (such as maintenance and utilities), the company keeps about 67.7 cents of every dollar in revenue as gross profit.

This figure sits slightly above the Real Estate sector median of 66.6%, placing the company at the 62nd percentile among its peers — a moderately better-than-average position. The metric has been completely stable over the past eight quarters, with year-over-year and quarter-over-quarter changes both at exactly +0.0%. The combination of a high, stable gross margin indicates consistent cost control and pricing power, which reduces the risk of earnings surprises from operating expenses. However, such stability also means there is no upward momentum to drive a more bullish outlook. This performance supports the overall NEUTRAL verdict, as the solid but unchanging margin offers neither a clear advantage nor a downside risk relative to the sector.

Frequently Asked Questions

What does the Gross Margin tell investors about AVB?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AVB's Gross Margin compare to its sector?

AVB's Gross Margin of 67.7% compares to a Real Estate sector median of 72.5%, placing it in the 17th percentile.

Who are AVB's closest peers by Gross Margin?

The closest Real Estate peers by Gross Margin include: FR (72.5%), PSA (72.1%), AMT (73.9%), TRNO (74.4%), REG (69.8%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.