Key Insights from IMN West: CoreVest President Michael Peerson on the State of SFR/BTR industry

This week at IMN West in Scottsdale, Arizona, CoreVest President, Michael Peerson joined the opening panel, “State of the SFR/BTR Industry” to discuss what CoreVest is seeing in the market today, touching on the current economic landscape, industry headwinds, pockets of opportunity, and how investors are adapting to shifting conditions. Below is a recap of Michael’s perspectives from the session.

Green Shoots: Where Momentum Is Building

CoreVest is witnessing increased demand for its Bridge LOC product. Builders looking to refinance construction loans — and buyers seeking to aggregate and stabilize rental communities — are turning to bridge solutions as markets recalibrate.

In certain markets facing oversupply, national homebuilders are pursuing bulk sales, opening a window of opportunity for well-positioned borrowers to acquire completed homes and communities at attractive pricing.

On the distribution side, there is strong and rising demand for loans, particularly DSCR and RTL. Capital Markets’ appetite remains robust, with insurance companies and securitizers providing deep, liquid bids for the product. CoreVest has seen this activity firsthand, witnessing record periods of distribution activity driven by increased demand from investors for our products.

Macro Risks: Distress vs. Repositioning

There are several structural risks shaping today’s housing landscape worth noting:

• Higher-for-longer interest rates continue to strain affordability.
• Inflation and tariff policies are adding pressure to costs across the supply chain.
• Job uncertainty is rising, with hiring rates falling to pre-pandemic lows and job openings at their weakest level since early 2021.
• Regional imbalances are becoming increasingly pronounced and are playing out as the U.S. is experiencing an estimated shortage of 2–5 million units.

On the topic of regional imbalances, Florida, for example, has seen housing inventory jump nearly 25% year-over-year, accompanied by 4–6% price declines, with Southern Florida hit hardest. Broadly, the Southern tier of the U.S. — from Southern California across to the Carolinas and Texas — has underperformed other regions.

Conversely, the Midwest is benefiting from constrained supply and affordability advantages. Inventory remains 40% below pre-pandemic levels, while home prices and living costs sit well below national averages. Starter homes in the $200,000 range, nearly extinct in many southern markets, remain accessible in states like Ohio, Michigan, and Missouri.

Certain markets, such as the Northwest, are experiencing a demand supply imbalance tied to the AI and tech boom, while the Northeast continues to outperform due to severely limited construction activity that have kept inventory more than 50% below pre-pandemic levels.

Liquidity or Repricing: What Comes Next?

When asked whether the industry should brace for liquidity tightening or asset repricing, the view is that repricing is the more likely path forward.

Access to capital remains healthy, with more dollars entering the space, not fewer. But asset values are adjusting in response to supply-and-demand shifts, and these adjustments can become self-reinforcing.

Creative Capital Structures on the Rise

With debt costs elevated, there is a clear uptick in risk-sharing structures.

Preferred equity is playing a growing role in today’s capital stacks, and joint ventures are also becoming more common as borrowers look to bridge funding gaps, reduce exposure, and stay agile in uncertain conditions.

Where Deal Flow Is Strongest

Right now, bridge financing is seeing the most activity . Borrowers are adjusting strategies in response to evolving regional market conditions, with many evolving strategies between leasing up full communities in preparation for bulk sales and selling homes individually.

In some regions, developers unable to match national homebuilders’ construction efficiencies are opting to purchase finished inventory — sometimes below their own creation costs — creating compelling investment opportunities.

In addition, we are seeing strong demand for RTL and DSCR loans from our borrowers. With healthy capital markets momentum, loan pricing is compelling and encouraging borrowers to engage in new investment opportunities.

Rent Growth: Still Going?

Local supply conditions will continue to dictate near-term rent movement, but several demographic trends support ongoing rental demand.

Homeownership isn’t being rejected — it’s being delayed. The median age of first-time buyers has reached a record of 40 years old. At age 30, only 33% of millennials own a home, compared to 42% of Gen X and 48% of baby boomers at the same age.

High home prices and interest rates play a role, but so do lifestyle choices: later marriages, delayed family formation, and more flexible career paths. These shifts create a larger, longer-term renter cohort, strengthening demand for SFR and BTR housing.

Final Thoughts

From shifting regional performance to creative financing solutions and changing demographic patterns, the SFR/BTR industry is navigating a complex but opportunity-rich environment. As noted throughout the panel, capital remains readily available, demand for rental housing is structurally supported, and investors who adapt to market dynamics — particularly around supply, pricing, and regional trends — are well positioned for the next phase of growth. In this environment, CoreVest is increasingly serving as a strategic partner to investors navigating lease-up strategies, bulk acquisitions, and capital-stack adjustments, helping them reposition portfolios without sacrificing momentum.