Top 3 Takeaways from IMN SFR East

It was so great to see so many of you this week at the IMN Single Rental Family Forum in Miami. It really has been too long. The overarching themes were palpable in the hallways, at the dinner table and at the sessions. The market is maturing and thriving with one participant more bullish than the next. To be fair, there is some angst over supply chains, material costs and inventory but net positivity is the word.
 

Why? In our opinion it boils down to the top three trends we saw:

Liquidity

The market has never seen so much capital on the equity or debt side. It’s fair to say that with very few investment theses’ yielding decent returns, single family rental, ground up construction and lending on both has caught the institutional eye.
 

Inventory

Unfortunately, inventory is negligible for the renovate to rent strategy that has driven most of the market to date. This lack of inventory is further driving the build to rent segment and other ground up construction and heavy lift rehab. The flipside good news, however, is a lot of great communities are coming on line and leasing faster and better than most proformas indicated.
 

Product

Unsurprisingly given the market dynamics, build for rent is still the product with the most air time. Other than some cost overruns that are being absorbed by rapidly increasing rents, we are only seeing tailwinds in this space. Operators are reporting beauty contests to pick capital sources rather than needing to pitch their projects to get funded!