Many investors are holding liquidity right now. Public market volatility, elevated interest rates, and economic uncertainty have created a natural instinct to wait. That caution is understandable. It is also why this period is creating some of the most attractive long-term real estate entry conditions in years.
The housing market is not expected to collapse. It is normalizing after more than a decade of distorted pricing driven by ultra-low interest rates and excess liquidity. Mortgage rates have stabilized in the mid-6% range, home price growth has moderated materially, and inventory is gradually rebuilding from historic lows. These are signs of a healthier, more disciplined market environment — not structural weakness.
Sources:
Freddie Mac Primary Mortgage Market Survey
https://www.freddiemac.com/pmms
Realtor.com 2026 Housing Forecast
https://www.realtor.com/research/2026-national-housing-forecast/
Affordability Remains the Core Driver of Demand
Even with slower price growth, homeownership remains expensive. Financing costs continue to have a meaningful impact on monthly payments, keeping ownership out of reach for many households. In Colorado, the median home value remains approximately $530,000. Even with stable pricing, borrowing costs continue to constrain affordability.
Source:
Zillow Colorado Home Values
https://www.zillow.com/home-values/10/co/
Affordability constraints are not theoretical. The National Association of Realtors Housing Affordability Index shows that purchasing power remains well below long-term averages across much of the country.
Source:
National Association of Realtors Housing Affordability Index
https://www.nar.realtor/research-and-statistics/housing-statistics/housing-affordability-index
The result is delayed homeownership. Many households are renting longer than prior generations, driven by economics rather than preference. That dynamic supports sustained rental demand.
Build-to-Rent Serves a Growing Renter Segment
Build-to-Rent communities are designed for renters who want space, privacy, and stability without the financial commitment of ownership.
Research from Freddie Mac shows that Build-to-Rent has expanded rapidly as households seek single-family living without the balance-sheet burden of ownership.
Source:
Freddie Mac Build-to-Rent Research
https://www.freddiemac.com/research
John Burns Research identifies Build-to-Rent renters as primarily working professionals and families who intend to rent for multiple years rather than short transitional periods.
Source:
John Burns Research & Consulting
https://www.johnburnsresearch.com
This represents durable demand that is less dependent on short-term market cycles.
Colorado’s Supply Imbalance Supports Long-Term Absorption
Colorado continues to face housing supply constraints relative to population and employment growth. New housing production has lagged household formation for years, particularly in high-growth corridors outside major metros.
Sources:
Colorado Department of Local Affairs
https://demography.dola.colorado.gov
Colorado Futures Center
https://coloradofuturescsu.org
Even as resale inventory improves, affordability has not meaningfully reset. Increased choice does not automatically restore purchasing power. Rental housing continues to absorb unmet demand.
Normalization Rewards Discipline, Not Speculation
Speculative strategies perform best when capital is cheap and asset prices rise rapidly. That environment no longer exists. Long-term real estate returns historically come from income generation, operational execution, and holding quality assets through cycles.
Source:
NCREIF Property Index
https://www.ncreif.org
Build-to-Rent aligns with that reality. It emphasizes predictable demand, professional operations, and long-term ownership rather than short-term exit timing.
Liquidity Has a Cost
Holding cash can feel safe during uncertain periods. Over time, idle capital loses purchasing power to inflation and currency erosion. Real assets — particularly land and income-producing housing — have historically preserved value over long periods while generating durable cash flow.
Source:
Federal Reserve Economic Data (FRED)
https://fred.stlouisfed.org
For investors with long-term horizons, waiting for perfect clarity often means missing disciplined entry opportunities created by market normalization.
The Investment Case
Today’s environment supports Build-to-Rent for several reasons:
- Ownership affordability remains constrained
- Renter duration continues to extend
- Housing supply remains structurally tight in growth markets
- Speculative competition has meaningfully reduced
- Institutional execution favors long-term operators
This is not a short-term trade. It is a positioning decision based on housing fundamentals.