AMH Stock Forecast & Price Target

American Homes 4 Rent has demonstrated a positive occupancy trend, with rates increasing sequentially to 95.6% throughout the quarter, which is atypical for this season. The company anticipates core revenue growth of 2.5% to 4.5% accompanied by net operating income growth of 2.25% to 4.25%, indicating a stable financial outlook despite rising operating expenses. Additionally, the firm has observed a 15% year-over-year increase in foot traffic, alongside a blended rent growth of 3.3%, driven by significant renewals, which further supports the strength of its rental income strategy.

American Homes 4 Rent has experienced a decline in expected development yields, now projected in the mid-5% range, impacting overall revenue prospects amid weaker lease rate growth. The company's initial core FFO guidance for 2025 suggests stagnation, with estimates holding steady at $1.83 per share while the 2026 outlook has been reduced due to anticipated challenges. Additionally, an oversupply of single-family rental units, driven by increased competition from private operators, may further suppress returns and complicate revenue growth as the firm navigates current rent softness and inflationary pressures in labor and materials.