Now we didn’t see that in €˜21. We really didn’t see much of that in 2020. But in 2022, it did come back. And so we did see some sequential declines as we went from September to October to November to December with regards to where overall rate was. And so that’s why the combination of those two things have brought loss to lease down. If you take that all into consideration and our expectations around what leasing activity is going to look like for renewal and new in this year in 2023, you get to our guidance range that we had provided with regards to where we thought same-store core revenues will go out. We feel optimistic that we have an opportunity to maybe do a little bit better, and we’re certainly going to try hard to do that. But we want to make sure we set the ground the right way at the beginning of the year.
And hopefully, we have a year like we’ve had in the past where we have underpromised and overdelivered, but we’ll just have to see how that plays out.
Operator: We now have Sam Choe with Credit Suisse. Your line is open.
Sam Choe: Hi, guys. Just was wondering if you could provide an update on your general thoughts on utilizing concessions and what that might look like during peak leasing season.
Charles Young: Yes. We have no concessions running at all. I think we talked about on our last call, we had a short-term kind of small concessions going into the holiday to try to push up on the occupancy as we saw seasonality come back. That’s typical that we run in that time of year, given the seasonal curve. But as of December, we had no concessions, and we don’t see any need to do it, given our current occupancy and the demand that we’re seeing right now.
Operator: Thank you. We now have Steve Sakwa with Evercore ISI.
Steve Sakwa: Yes, thanks. Good morning. Dallas, I was just wondering if you could comment a little bit more on some of the builder relationships. And given the challenges that they’re facing in actual home sales, I just didn’t know if bulk sales and a bigger commitment from you to them to take down homes was more in the offering here and how those discussions have maybe unfolded.
Dallas Tanner: Steve, first of all, our pipeline today sits at about 2,300 homes that we have in contract with our different builder partners. And we’re working right now with five to 10 builders, kind of, nationally and regionally across a variety of opportunities. Obviously, everybody is familiar with our strategic structure with Pulte. We’d like to build as many homes with them. They’ve been a terrific partner, and they have a great team. It’s interesting, Steve. We sort of — there was a lot of unknowns going into summer last year around kind of volatility of what was going to happen with rate. I think what we’ve seen most builders, as I mentioned before, do really well is kind of navigate the mortgage and the payment side of things without having to discount pricing too much.
There’s certainly kind of quarter-end stuff where we’ve had some small opportunities. But I think time will tell, and it’s largely dependent on what happens with the labor market. If things continue to slow down, I would view that as a very good opportunity for Invitation Homes in terms of building out a much wider and longer pipeline across purpose-built construction that will come into our portfolio. We are now coming out of the ground with some of our first kind of full communities. We are touring one last week in Atlanta, in fact. And very pleased with the not only quality of the product, but the return profile and the demand, as Charles mentioned, top of funnels really. So Steve, our approach going into €˜23 would be that we’re going to look opportunistically to enhance and grow that pipeline and also those relationships, find ways to do things more programmatically with our preferred partners.
