Real estate can be an exciting and lucrative way to diversify a portfolio, earn passive income and hedge against inflation. Unfortunately, buying and managing properties can be costly, risky and difficult for the average investor.
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Fortunately, investors can instead buy real estate investment trusts, or REITs. REITs are companies that own and manage diversified portfolios of residential, commercial and specialty real estate. REITs must pay out 90% of taxable income to investors via dividends, and public REITs trade like stocks on major exchanges. Here are 10 of the best REITs to buy in 2026, according to Morningstar analysts:
| REIT | Implied upside* |
| American Tower Corp. (ticker: AMT) | 34% |
| Realty Income Corp. (O) | 20% |
| Crown Castle Inc. (CCI) | 58% |
| AvalonBay Communities Inc. (AVB) | 17% |
| Equity Residential (EQR) | 18% |
| SBA Communications Corp. (SBAC) | 40% |
| Invitation Homes Inc. (INVH) | 25% |
| Healthpeak Properties Inc. (DOC) | 19% |
| Sun Communities Inc. (SUI) | 22% |
| Equity LifeStyle Properties Inc. (ELS) | 20% |
*From Aug. 5 closing price, per Morningstar fair value estimates.
American Tower Corp. (AMT)
American Tower is a specialized REIT that operates the world’s largest independent portfolio of wireless communications and broadcast towers. Analyst Michael Hodel says he isn’t particularly excited about tower growth in the U.S. in the near term, but he expects steady demand and revenue growth in the low-to-mid, single-digit-percentage range for American Tower in the long term. Hodel says the REIT’s data center business has been a bright spot, and data center growth should accelerate once new capacity comes online and becomes leased. Morningstar has a “buy” rating and $225 fair value estimate for AMT stock, which closed at $168.07 on Aug. 5.
Realty Income Corp. (O)
Realty Income is a retail REIT that owns, develops and manages U.S. retail real estate with a focus on single-tenant buildings. It is the largest triple-net REIT in the U.S., meaning tenants pay all property expenses, including real estate taxes, maintenance and building insurance. Realty Income has a 5.2% dividend yield and makes monthly dividend payments, making it an attractive income source. Analyst Kevin Brown says about 80% of Realty’s tenants are retailers, but most operate defensive businesses that are insulated from online disruption. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $62.70 on Aug. 5.
Crown Castle Inc. (CCI)
Crown Castle International is a specialty REIT that owns and operates wireless communications towers. In 2025, Crown Castle agreed to sell its fiber business to Zayo Group for $8.5 billion. Following the divestment, the company cut its dividend by 32%, but Crown Castle still has an attractive 5.8% yield after the cut. The REIT is down 14.9% year to date, the worst performance on this list. However, Hodel says Crown Castle is undervalued as it completes its transformation into a stable U.S. tower infrastructure company. Morningstar has a “buy” rating and $117 fair value estimate for CCI stock, which closed at $73.84 on Aug. 5.
AvalonBay Communities Inc. (AVB)
AvalonBay Communities is a multi-family residential REIT that specializes in upscale apartment communities. In May 2026, AvalonBay and Equity Residential announced a merger of equals deal to create a combined REIT with an enterprise value of approximately $69 billion and a portfolio of more than 180,000 rental apartments. Brown says AvalonBay’s expense growth has surpassed its revenue growth by less than he feared in recent quarters. He says the REIT is undervalued given his outlook for annual same-store net operating income growth of around 3%. Morningstar has a “buy” rating and $221 fair value estimate for AVB stock, which closed at $189.61 on Aug. 5.
Equity Residential (EQR)
Equity Residential is a multi-family residential REIT that owns and operates a diversified portfolio of apartment properties. Once its merger with AvalonBay is completed, Equity Residential shareholders will own 48.8% of the combined company, while AvalonBay investors will own 51.2%. The executive teams of the two REITs estimate the deal will create roughly $125 million in cost savings within 18 months of closing. Brown says Equity shares are undervalued at current levels assuming net operating income growth and interest rates normalize in the long term. Morningstar has a “buy” rating and $80 fair value estimate for EQR stock, which closed at $67.74 on Aug. 5.
[READ: 8 Best Real Estate Stocks to Buy]
SBA Communications Corp. (SBAC)
SBA Communications is a specialized REIT that owns and operates a global wireless communications tower network. Hodel says SBA is probably the most likely of the three public U.S. tower REITs to be taken private, but speculation surrounding a potential acquisition may have ironically pushed the share price above an attractive range for a potential buyer. He says SBA’s discipline in acquiring properties has served the company well by helping it avoid overpriced deals, generate relatively strong returns on capital and prioritize share buybacks. Morningstar has a “buy” rating and $250 fair value estimate for SBAC stock, which closed at $178.40 on Aug. 5.
Invitation Homes Inc. (INVH)
Invitation Homes owns, operates and leases single-family U.S. homes in the starter and move-up categories. The REIT’s portfolio is concentrated largely in the Western U.S. and Florida. Brown is bullish on Invitation Homes’ decision in the most recent quarter to be a net seller of properties and use the proceeds to buy back $100 million in stock and pay down debt. He says the cost of homeownership is higher than the cost of renting in many of Invitation’s major markets, which supports elevated occupancy rates. Morningstar has a “buy” rating and $38 fair value estimate for INVH stock, which closed at $30.50 on Aug. 5.
Healthpeak Properties Inc. (DOC)
Healthpeak Properties is a healthcare REIT that invests in life science and medical office properties and other healthcare facilities throughout the U.S. The company’s $5 billion 2024 acquisition of Physicians Realty Trust added 16 million square feet of high-quality medical office buildings to Healthpeak’s portfolio. In 2026, Healthpeak’s share price is up 40.9%, the best performance on this list. Healthpeak’s dividend yield of 5.6% is also the highest on this list. Brown predicts consistent growth from Healthpeak’s medical office properties. Morningstar has a “buy” rating and $26 fair value estimate for DOC stock, which closed at $21.79 on Aug. 5.
Sun Communities Inc. (SUI)
Sun Communities owns and operates manufactured housing communities, primarily in the U.S. Midwest and Southeast. Nearly 50% of Sun’s portfolio is located in either Michigan or Florida near major bodies of water. Brown says Sun’s manufactured housing net operating income growth has been impressive and has more than offset weakness in the REIT’s recreational vehicle business. He says Sun has grown aggressively in the past 15 years by acquiring properties in attractive locations that are desirable as vacation properties or second homes. Morningstar has a “buy” rating and $148 fair value estimate for SUI stock, which closed at $120.86 on Aug. 5.
Equity LifeStyle Properties Inc. (ELS)
Equity LifeStyle Properties is a residential REIT that specializes in property operations, home sales and rental operations of manufactured homes, recreational vehicle communities and marinas. Brown says Equity LifeStyle targets attractive retirement destinations such as Florida and California, and more than 70% of its properties are either age-restricted or have an average resident age over 55. He says Equity LifeStyle’s average rent-per-site growth has been strong despite pressures on manufactured housing occupancy rates, and the REIT should benefit from an aging U.S. population of baby boomers. Morningstar has a “buy” rating and $78 fair value estimate for ELS stock, which closed at $65 on Aug. 5.
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10 of the Best REITs to Buy for 2026 originally appeared on usnews.com
Update 08/06/26: This story was previously published at an earlier date and has been updated with new information.
