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- May 26, 2026
- Insights
The Encore Finance team was down in Miami recently for IMN SFR East, talking with investors, operators, lenders, and groups active across the SFR and BFR space.
Overall, the tone felt much more pragmatic than fearful, and a few key themes kept coming up.
Here are a few of our biggest takeaways from the event.
Higher Rates Are No Longer the Headline
A year or two ago, rate conversations were all about which way rates would go and whether the market would “normalize.” That wasn’t really the tone this year.
Most groups seem to have accepted that higher financing costs are simply part of the operating environment now. There was plenty of discussion around tighter spreads, insurance costs, and softer rent growth in some markets, but the focus has shifted toward adapting rather than waiting for conditions to change.
The mood wasn’t euphoric, but it also wasn’t overly cautious. Most operators we spoke with were focused on underwriting more carefully, protecting cash flow, and operating more efficiently.
Execution Matters More Than Ever
One of the clearest shifts from prior years was an emphasis on operations.
The market increasingly feels operator-led rather than capital-constrained. Capital is still available, but the groups continuing to grow tend to be the ones with stronger systems, local market knowledge, and better execution.
That showed up in the makeup of the conference itself. The room skewed toward larger, active operators, with noticeably fewer smaller players than in prior years.
Instead of talking about who can scale the fastest, many groups are now focused on who can operate best through volatility. In part, that means controlling expenses, managing turnover, and staying disciplined on acquisitions.
Capital Is Still Active for Strong Sponsors
The lending environment is more selective, but capital remains active for experienced operators and well-located SFR and BFR assets.
One topic that came up repeatedly was sponsorship quality. Lenders are placing more emphasis on operational track record and execution capability, particularly on lease-up and transitional deals.
Borrowers, meanwhile, are increasingly prioritizing certainty and flexibility over simply chasing the absolute lowest rate.
Long-Term BFR Sentiment Remains Positive
The long-term outlook around BFR remained positive and pragmatic. In particular, there was notably less policy speculation than in recent months. Instead, most of the talk was focused on underlying demand fundamentals.
Affordability pressures in many markets continue supporting renter demand, particularly for lower-density housing options that offer more space and flexibility than traditional multifamily. That bodes well for the future of BFR.
Final Thoughts
The biggest takeaway from IMN this year was that the SFR and BFR markets continue maturing into a more operationally driven business. Groups with disciplined underwriting, strong execution, and a clear operational strategy still appear well-positioned to find opportunities in today’s environment.
Encore Finance remains active across SFR and BFR lending, including bridge, term, and our newly launched DSCR program for individual properties.
If you’re evaluating opportunities or looking for financing solutions in today’s market, we’d be happy to connect. Contact us here to start the conversation.
