I too was spoiled by the 8% pref def along with huge exits during the run up economy and ever compressing cap rates.

The nice thing is that the homes are not compressed together.  

Also, access to online HMLs is compressing the total returns as the market gets more efficient.

But many booking windows across the country have compressed, and you will get bookings if you are seriously competitive.

You’re basically paying high prices at low, compressed rates.  

Many of these projects derive 50% or more of their overall profits from reversion cap rate assumptions and some type of compression that probably doesn't exist in the current environment.  

I personally believe rates will slowly come down to long-term historic averages in the mid-upper 4% range, but I don't think cap rates will compress much under 5, and that is going to be for the best product in the best locations.  

There was downward compression on pricing with local comps, high interest rates, and a softening buyer pool.

Good luck I have been seeing some pretty significant price compression in some Texas Markets..

Canadian population growth and current vary favourable CMHC financing terms are likely mostly responsible for that, and both of those factors are above/more favourable than historical norms, so if your time horizon is long, then I would not count on appreciation/cap rate compression as part of your underwriting.