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- July 2, 2026
- Insights
Over the past six months, the Encore Finance team has spent time with investors, operators, lenders, and capital providers at industry conferences and in conversations with clients across the country. While every market and every deal is different, a few themes have come up consistently.
Here are four things we’ve learned during the first half of 2026, and what they could mean for the second half.
1. The Market Has Adjusted to Higher Rates
Not long ago, most conversations centered around one question: When will rates come down?
That focus has changed significantly in 2026.
Instead, the conversation today is about how to operate in today’s environment rather than waiting for a different one. Investors are underwriting deals based on current financing costs, evaluating opportunities more carefully, and focusing on projects that make sense regardless of what rates do next.
No one knows exactly where rates are headed, but the market appears increasingly comfortable moving forward without waiting for perfect conditions.
2. Execution Has Become the Competitive Advantage
Execution was the buzzword at the last couple of conferences we attended. There was broad consensus that success today depends less on finding cheap capital and more on operating well.
Whether it’s disciplined acquisitions, managing expenses, navigating lease-up, or protecting cash flow, execution has become one of the biggest differentiators between operators.
The investors continuing to grow aren’t necessarily the ones taking the biggest risks, but the ones making thoughtful decisions and executing them consistently.
3. Capital Remains Available for Strong Sponsors
While lending conditions remain selective, it’s clear that capital is still active.
Across both the securitization market and business-purpose lending, liquidity has remained healthy throughout the year. Experienced operators with strong projects continue to find financing opportunities, even as underwriting remains disciplined.
We’ve also noticed borrowers placing greater value on certainty, flexibility, and dependable execution rather than simply chasing the lowest possible rate.
4. Long-Term Fundamentals Continue to Support SFR and BFR
Even as we’re dealing with ongoing economic uncertainty, the long-term outlook for single-family rentals and build-for-rent remains constructive.
Affordability challenges continue to support rental demand in many markets, while many investors remain optimistic about housing segments that offer residents more space and flexibility.
Rather than focusing on short-term headlines, many of the conversations we’ve had this year have centered on long-term fundamentals and building resilient portfolios that can perform across different market conditions.
What We’ll Be Watching in the Second Half
While no one can predict exactly how the remainder of 2026 will unfold, a few areas will continue to be worth watching.
We’ll be paying close attention to things like liquidity across business-purpose lending, how operators continue adapting to today’s environment, and how activity across the SFR and BFR markets evolves throughout the remainder of the year.
If the first half of the year has taught us anything, it’s that today’s market rewards preparation, discipline, and strong execution. Those have always been important qualities, but they matter more than ever in the current environment.
At Encore Finance, we look forward to continuing those conversations with investors throughout the second half of 2026 and helping them identify financing solutions that support their long-term goals.
