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.
The conversation covered 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.
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 products. Capital markets appetite remains robust, with insurance companies and securitizers providing deep, liquid bids for these products.
CoreVest has seen this activity firsthand, witnessing record periods of distribution activity driven by increased investor demand for its products.
Several structural risks are shaping today’s housing landscape:
These pressures are playing out differently across the country.
Florida has seen housing inventory increase nearly 25% year over year, accompanied by price declines of 4–6%, with Southern Florida hit hardest.
More broadly, the Southern tier of the U.S.—from Southern California through Texas and the Carolinas—has underperformed other regions.
The Midwest is benefiting from constrained supply and affordability advantages. Inventory remains 40% below pre-pandemic levels, while home prices and living costs remain well below national averages.
Starter homes in the $200,000 range—nearly extinct in many Southern markets—remain accessible in states such as Ohio, Michigan, and Missouri.
Certain markets in the Northwest are experiencing a supply-demand imbalance tied to the AI and technology boom.
The Northeast continues to outperform due to severely limited construction activity, which has kept inventory more than 50% below pre-pandemic levels.
When asked whether the industry should brace for tighter liquidity or asset repricing, Michael indicated that repricing is the more likely path forward.
Access to capital remains healthy, with more dollars entering the space rather than fewer. However, asset values are adjusting in response to supply-and-demand shifts, and those adjustments can become self-reinforcing.
With debt costs elevated, the market is seeing a clear increase in risk-sharing structures.
Preferred equity is playing a growing role in today’s capital stacks. Joint ventures are also becoming more common as borrowers look to bridge funding gaps, reduce exposure, and remain agile under uncertain conditions.
Right now, bridge financing is seeing the most activity.
Borrowers are adjusting their strategies in response to evolving regional market conditions. Many are shifting between leasing up full communities in preparation for bulk sales and selling homes individually.
In some regions, developers unable to match the construction efficiencies of national homebuilders are instead purchasing finished inventory—sometimes below their own creation costs—creating compelling investment opportunities.
CoreVest is also seeing strong borrower demand for RTL and DSCR loans. With healthy capital markets momentum, compelling loan pricing is encouraging borrowers to pursue new investment opportunities.
Local supply conditions will continue to dictate near-term rent movement, but several demographic trends support ongoing rental demand.
Homeownership is not necessarily being rejected—it is being delayed. The median age of first-time buyers has reached a record 40 years old. At age 30, only 33% of millennials own a home, compared with 42% of Gen X and 48% of baby boomers at the same age.
High home prices and interest rates play a role, but lifestyle choices are also contributing to this shift, including later marriages, delayed family formation, and more flexible career paths.
These changes are creating a larger, longer-term renter cohort and strengthening demand for SFR and BTR housing.
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, rental-housing demand is structurally supported, and investors who adapt to changing 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.
This article is provided for informational purposes only and does not constitute legal, tax, accounting, investment, financial, real estate, or lending advice. Market conditions and financing availability may change. All loans are subject to underwriting, credit approval, eligibility requirements, and applicable terms and conditions.
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