The 2025 PCBC Conference delivered another dynamic and insightful experience. IHP Capital Partners’ Jeff Enes was in the mix, contributing to key conversations on the shifting landscape of residential real estate, particularly across high-growth Western markets.

Here are Jeff’s three major takeaways influencing our outlook moving forward:

1.     Public Builders Doubling Down on Land Banking: To preserve capital and reduce balance sheet exposure, public homebuilders are accelerating their use of land banking and option agreements. These structures allow builders to control land without owning it, enhancing return on equity while reducing risk and carrying costs.

2.     Home Prices Remain Resilient Despite Headwinds: Although affordability constraints and interest rate volatility are contributing to modest price softening, the fundamental supply-demand imbalance continues to support housing values, particularly in underserved entry-level and move-up segments. In-migration to key Western metros is reinforcing this long-term structural demand.

3.     Deal Structures Evolve for Downside Protection: In today’s uncertain environment, developers and capital partners are shifting toward more defensive deal terms. We’re seeing a rise in preferred equity and participating debt structures, along with greater use of phased takedowns, contingent closings, and built-in downside protections.

IHP remains committed to deploying capital with conviction, while structuring deals that reflect today’s realities and tomorrow’s opportunities.