Avalon: News Release


For Immediate Release
April 7, 1998
AVALON ANNOUNCES THE PURCHASE OF
TWO DEVELOPMENT SITES IN DANBURY, CONNECTICUT



Avalon Properties, Inc. (NYSE: AVN) announced today that it has purchased
development sites for two new communities in the City of Danbury, Connecticut,
for the development of 403 luxury apartment homes.  Danbury, located in
Western Fairfield County, is within 30 minutes of lower Fairfield County, and
15 minutes of the New York State border and Westchester County.  The two new
communities, Avalon Lake and Avalon Valley, are both located within 3/4 of a
mile of Interstate 84, the region's major East-West highway.  

The average and median household income in the City of Danbury is $78,238 and
$65,676, respectively.  The Danbury submarket does not currently contain Class
A Residential Communities, and lacks additional zoned land for multifamily
development.  In the last fifteen years, no rental communities have been
constructed. 

Avalon Valley will consist of 268 apartment homes in ten, three story
buildings situated on 17.1 acres of land.  The community is designed around
existing wetlands and open space to create an opportunity for passive and
active recreation.  The average size of each apartment home is 1,070 net
square feet of living space.  Avalon Valley is budgeted to cost $26.1 million.
 Construction began during the First Quarter of 1998, and is expected to be
completed by the Third Quarter of 1999.  Leasing is expected to commence
within 12 months of the start of construction with stabilized operations
achieved by the Third Quarter of 1999.

Avalon Lake, will offer 135 direct entry apartment homes in six buildings
situated on 32 acres of land.  The average size of each apartment home is
1,184 net square feet of living space.  Avalon Lake is budgeted to cost $17
million.  Construction is expected to commence during the Second Quarter of
1998 and is expected to be completed the Third Quarter of 1999.  Leasing is
expected to commence within 12 months of the start of construction with
stabilized operations achieved by the Third Quarter of 1999.

The combined projected stabilized yield for these communities is 10.1%.

This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.  The words "expect", "anticipate," "estimate",
"projected", "budgeted" and other similar expressions which are predictions of
or indicate future events and trends and which do not relate solely to
historical matters, including information concerning the Company's future FFO
estimates, identify forward-looking statements.  Reliance should not be placed
on forward-looking statements because they involve known and unknown risks,
uncertainties and other factors, which are in some cases beyond the control of
the Company and may cause the actual results, performance or achievements of
the Company to differ materially from anticipated future results.  Factors
that impact the Company's ability to meet these forward-looking statements
include, but are not limited to, the market acceptance of the Company's new
developments, local market conditions, the ability to achieve projected costs
and other factors discussed periodically in the Company's reports filed with
the Securities and Exchange Commission.

Avalon, named the NAHB Property Management Company of the Year for 1996/1997,
owns or holds an ownership interest in 66 stabilized apartment communities
containing 19,724 apartment homes in twelve states and the District of
Columbia.  Eleven communities with 2,825 apartments homes are presently under
construction.  Avalon Properties, Inc. is an equity REIT in the business of
developing, acquiring and managing multifamily communities in the high
barrier-to-entry markets of the United States.  More information on Avalon
Properties may be found on Avalon's Web site at http://www.avalonprop.com. 

For more information, please contact Richard L. Michaux, Chairman, at (703)
317-4602 or Bryce Blair, Senior Vice President - Development & Acquisitions at
(781) 356-7101.



Ends.