What are the largest market challenges and how are you handling them?

For VineBrook, the challenges are related to operating a portfolio of older affordable homes – this presents challenges on the maintenance front as well as occasional challenges on collections. To combat, we focus on the resident experience – provide them with the cleanest, best maintained home we can, be responsive to their needs and that wins the day.

John A. Good, CEO, VineBrook Homes

At this point it's more on the development, ground-up restraint of target markets. Municipalities having restrictions or building strong relationships with developers. We're doing extra due diligence, asking lots of questions and seeking referrals, reviews and insight on projects older than 3-5 years to show developers' strengths.

Ben Bowerman, Vice President of Capital Markets, HPP Equity LLC

Institutional LP capital for new developments and construction costs are major challenges. We combat this by developing in high growth Southeast markets and using our own in-house GC to control timing and costs.

Ken Capenter, Chief Investment Officer, Madison Capital Group, LLC

Steve La Terra, CEO, Terralane Communities

Interest rate volatility and construction costs remain headwinds. We're addressing both through tighter capital structures, more flexible phasing strategies, and long-term partnerships with lenders and contractors who understand the BTR model.

David Shlomi, Principal, Stone View Holdings

Depends on the market but maintain a high leasing velocity has been a challenge. To combat, we're increasing targeted marketing spend, concessions on new leases and in some cases renewals, higher spend on programming.

Ting Qiao, CEO, Wan Bridge

The build-to-rent sector experienced significant headwinds in 2025, driven by a combination of economic uncertainty, shifting renter demand, and oversaturation in certain submarkets. As supply levels increased and competition intensified, maintaining strong occupancy and operational efficiency became more challenging across the industry.

At Wan Bridge, we’ve approached these challenges with discipline and foresight. Our strategy focuses on data-driven market selection, ensuring we build in locations with sustainable long-term demand and strong fundamentals. By leveraging AI and predictive analytics, we’re able to identify emerging growth corridors before they peak — giving us a strategic advantage in land acquisition and development timing.

Additionally, our vertically integrated model allows us to remain agile, controlling quality, costs, and service from construction to property management. This flexibility enables us to adapt quickly to market shifts while continuing to deliver exceptional communities that meet the needs of Texas renters.

Largest market challenges are organic growth, only 55% of SFR management companies grew in 2025. We are also seeing days on market continuing to increase.

James Phillips, Executive Director-Residential & Commercial, Property Management Inc.

John Isakson, CEO, Ark Homes for Rent

More boots on the ground in difficult markets…

John Isaakson, Ark Homes for Rent

Raising funding, especially equity.

Mark W. Pearson, Principal, Texas Oak Capital

There is still a pretty large supply hangover in most markets, whether from regular multifamily or BTR. Demand is softer than expected as well. We are being very selective on deals we acquire and underwriting conservative market and lease up assumptions. Many of our marketing teams have gone “back to basics” and drifted away from reliance on web traffic. We have more boots on the ground in difficult markets and feel like that has helped to combat slow lead traffic and differentiate us with prospects and large employers.

Tim Leber, Vice President, CoreVest Finance

Largely, we are dealing with market conditions outside of our control, but given the (still) higher rate environment, the competitive landscape of lenders competing on deals is extremely aggressive. Deals are won and lost over a few basis points and lender margins are slim as it is. Borrowers see higher interest rates on unique deals and sometimes feel like they may be getting gouged on pricing, but in reality, we are making slimmer margins than the past few years.