On-site insights: Single Family Rental West

A summary of panelist insights at IMN's SFR West, Dec 2-4, 2025 at Scottsdale AZ

The Single-Family Rental (SFR) and Build-to-Rent (BTR) sectors are navigating a complex landscape shaped by macroeconomic uncertainty, shifting capital flows, and evolving regulatory dynamics. Industry leaders gathered to discuss the current state of the market, highlighting the resilience of the asset class despite challenges such as higher interest rates, fluctuating valuations, and policy changes. While equity capital has been slower to return, debt markets are showing signs of recovery, with securitization and life pool activity gaining momentum. Investor sentiment remains cautiously optimistic, buoyed by the strong fundamentals of the housing market, including persistent supply shortages and robust demand. The panel emphasized the importance of disciplined investment strategies, creative capital structures, and a long-term perspective to weather volatility and capitalize on emerging opportunities.

Looking ahead, the SFR sector is poised for growth, supported by favorable demographic trends and the enduring appeal of rental housing as an asset class. The optionality of exit strategies, whether selling to homeowners or investors, adds a layer of flexibility that enhances the sector's attractiveness. As the industry continues to adapt to challenges such as housing stock obsolescence and urban infill needs, innovative approaches like Residential Transitional Loans (RTL) are stepping in to address supply gaps. With a projected need for 18 million housing units by 2034, the SFR sector is expected to play a pivotal role in meeting demand, offering a compelling investment opportunity for those willing to navigate the complexities of the current environment.

Discussion also highlighted concerns about unemployment, particularly its impact on housing markets, with fears of job losses due to AI and economic shifts. Despite these challenges, housing remains a necessity, and rental properties, especially single-family homes, are seen as resilient investments. The conversation also touches on the use of AI in business operations, with some leveraging it for efficiency in areas like accounting and marketing, while others remain skeptical about its transformative potential. The panelists emphasize the importance of adaptability in the housing industry, with strategies like pivoting to new business models, such as acquiring existing assets below replacement costs, or exploring unique housing designs like larger townhomes to cater to evolving demographics. Regulatory challenges, particularly at the local level, are noted as obstacles to development, with some municipalities actively resisting new housing projects. Despite these hurdles, there is optimism about future opportunities in housing, driven by the enduring demand for homes and the ability to innovate and pivot in response to market conditions.

Registration open for SFR East, May 18-20, 2026 - Register with early bird savings