Avalon: Announces Pricing of Preferred Stock


Avalon Bay Communities, Inc. 
For Immediate Release - October 8, 1998



AvalonBay Announces Pricing of $100 Million Series H Cumulative Redeemable
                            Preferred Stock 

AvalonBay Communities, Inc. (NYSE/PCX Symbol: AVB) announced today that it
priced a public offering of 4,000,000 shares of 8.7% Series H Cumulative
Redeemable Preferred Stock at $25 per share. The preferred stock, which may be
redeemed by the company at $25 per share, plus accrued and unpaid dividends, on
or after October 15, 2008 has no stated maturity, sinking fund or mandatory
redemption and is not convertible into any other securities of the Company.  
The preferred stock, which has been rated BBB by Standard & Poor's and "baa2"
by Moody's Investors Service, will be listed on the New York Stock Exchange and
the Pacific Exchange.  Settlement is scheduled for October 15, 1998.  The
Company granted the underwriters an over-allotment option for up to 600,000
shares.
Net proceeds to the Company from this offering, after all anticipated issuance
costs but before any exercise of the underwriters' over-allotment option, are
estimated to be approximately $96.6 million.  Net proceeds will be used to
reduce borrowings under the Company's unsecured credit facility.
This press release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of these securities in any state
in which such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such state.
AvalonBay is an equity REIT operating in high barrier-to-entry markets of the
United States.  The Company owns 146 communities totaling 42,563 apartment
homes in 29 distinct markets, of which 16 communities are under construction
and 23 are or will be under redevelopment.  In addition, the Company holds
future development rights for 20 communities.  For more information on
AvalonBay, visit the Company's website at http://www.avalonbay.com.  For
additional information, please contact Richard L. Michaux, CEO, at (703)
317-4602 or Thomas J. Sargeant, CFO, at (703) 317-4635.
This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The forward-looking statements
contained in this release are statements that involve risks and uncertainties,
including, but not limited to, market demand, the effect of economic
conditions, the impact of competition and competitive pricing, changes in
construction scope or costs, the result of financing efforts, actual purchases
under agreement, the effect of the Company's accounting policies and other
risks detailed in the Company's Securities and Exchange Commission filings.







Ends.