The Rent Roll with Jay Parsons EP#35 Branden Lombardi | SFR REIT's Update + BTR Opportunities
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May 22, 2025 Branden Lombardi, President of BB Living and a key player in build-to-rent (BTR) strategies, discusses the latest trends in suburban infill development. He shares insights on the shift from exurban to suburban opportunities in the BTR market, alongside evolving construction strategies. Lombardi highlights the resilience of the single-family rental (SFR) market and the advantages of new constructions as an alternative to traditional home purchases. The conversation unveils the growing importance of marketing rental living as a practical option for many.
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SFR Leasing Gains Momentum in Q1
- SFR REITs saw improved Q1 leasing momentum despite economic noise, with positive new lease rate growth returning after Q4's decline.
- Strong occupancy rates and low turnover highlight resilient demand in the SFR market even as rent growth normalizes below peak levels.
SFR REITs Pivot to New Construction
- SFR REITs continue shifting from buying individual resale homes to acquiring new construction and building in-house, seeing more deals directly from builders.
- Build-to-rent starts dropped 60% year-over-year, indicating a future supply slowdown despite high volume completions today.
Low Turnover and Healthy Renters
- Resident turnover in SFR is at historic lows driven by low home purchase move-outs and affordability challenges.
- Renters remain financially healthy with high retention rates and strong leasing activity despite economic uncertainty.