Larry Baum, Managing Partner, Stellar Communities

May 2026 — Invest: spoke with Larry Baum, managing partner of Stellar Communities, about what is and isn’t changing in Florida’s development landscape, the cost drivers behind affordability, and how technology is reshaping the resident experience. “We try to integrate everything — cameras, lights, thermostats, rent, and service requests into one app, so the experience is simple and consistent,” Baum said.

What changes have you seen in the industry over the past year in South Florida?

Very little. The main shift is that there’s more interest right now from equity to develop communities because inventory and units are starting to be absorbed. There’s more absorption and less delivery, which means less inventory sitting on the market. In that sense, things are looking better for this year.

At the same time, it’s still a difficult market for equity to raise money. Capital is more selective. Equity wants best-in-class developers with a track record, and they want the best locations. If you’re not checking both boxes, it’s hard to get deals financed, even if the fundamentals look strong.

We’re still doing it. We’re building about four communities a year. Between lots and homes, that’s roughly 600 to 700 homes annually. But it’s still challenging, and you have to be disciplined about what you pursue.

How are you seeing demand between for-rent and for-sale communities?

The demand is there on both sides. The affordability is the issue, and it’s being driven by costs that most people don’t see until they’re in the middle of a deal.

For example, it costs me, just in a permit, $50,000 per unit in Osceola County, near Orlando, where Disney World is. If I’m doing a community of 200 units, $50,000 times 200 is a lot of money just in a piece of paper. That kind of cost has to show up somewhere, and it shows up in rents and sales prices.

Then people ask why things are so unaffordable. It’s very clear, because there’s a lot of bureaucracy, plus impact and permit fees. In South Florida, we don’t have that issue as much on the cost side, but we do have regulations, zoning requirements, and NIMBYs that fight you. It can take a long time to get housing approved, and time is money in development.

The good news is the governor pushed through the Live Local Act, and that’s helping a lot. With Live Local, we’ve been able to get some deals passed. It doesn’t solve everything, but it gives you another path to move housing forward.

How are construction pricing and project feasibility shifting compared to the last couple of years?

Construction prices have stabilized. Costs have been coming in because there are fewer starts, so contractors are competing harder and pricing is less overheated than it was.

Before 2022, when interest rates and construction costs went up like crazy, you could do a multifamily building here in South Florida with structured parking. Now you can’t because the numbers don’t make sense, especially when you combine higher debt costs with the cost of materials and labor. But we’ve seen costs stabilize and units get absorbed, so we feel like we’re going to be able to start some buildings here in South Florida again pretty soon, if financing continues to loosen up.

What role is sustainability playing in investment decisions, and what are residents willing to pay for?

We’re one of the few development companies in the state that self-impose green certifications. We have NGBS certification in all our communities. We do it because it’s the right thing to do, but at the end of the day, things are expensive.

If someone’s going to rent a unit, they’re not going to pay an extra $100 a month because it’s green. So we focus on the wellness component, meaning you’re breathing cleaner air. Each unit has cleaner air. But it comes down to affordability, and people do not pay more for green. We’ve been doing this for 10 years, and the patterns are the patterns.

You’re not going to pay more for something you don’t see. It’s intangible. We spend extra in development to reduce our footprint, but it’s hard to monetize.

I also think there are real tradeoffs. Wind in the ocean affects whales and cetaceans, and solar kills millions of birds a year. People talk about lower CO2, but they ignore what happens to animals.

And I think people mix up climate change and human pollution. Climate cycles are inevitable. What we do control is pollution in oceans and rivers, and chemicals like mercury used in illegal mining that stay in the environment. That’s man-made.

There has to be a fine balance. We’re known as the green guys, but we do it in an economic way that makes sense. An environmental professor once said you have energy from the heavens, like sun and wind, and energy from hell, from underground fuels. As long as the energy from hell is cheaper than the energy from heaven, no one’s gonna make the move, and it comes down to dollars.

How are you incorporating technology into your business and your communities?

We’re all about systems. We have proprietary software that uses AI and manages everything from land acquisition and entitlements through the purchase, land development, construction, and lease-ups or lot sales. Everything is managed through our programs and AI, and we have a dedicated team just for that.

In our communities, we integrate technology into the resident experience. Every unit has one gig of fiber directly to the unit, no coaxial cables. Everyone’s streaming now, so fast connectivity matters.

We also offer video doorbells, programmable thermostats, and programmable lights controlled through an app. You pay rent through the app. If there’s a work order, you take a picture and send it in. We try to integrate everything — cameras, lights, thermostats, rent, and service requests into one app, so the experience is simple and consistent.

From your perspective, what makes Florida a great place to do business and develop?

I’m Colombian, and my business partner is Colombian, too. Growing up, the U.S. was always the land of freedom. Florida has maintained that mantle by being about law and order, pro-business, and pro-growth, not about regulation and government interference.

There’s still growth and people still want to come to Florida. People are leaving other states, and Florida stays pro-property rights, which makes it pro-business.

Florida and Texas are leading that charge, but Florida has higher barriers to entry than Texas. In Florida, you have to know the species issues, the nesting windows, the zoning hurdles, and the NIMBY fights. But once you get something approved, the value goes up, and absorption is strong. Even in challenging times, things get rented or sold quickly. In my opinion, this is the best state to do business in.

Looking ahead, what are your top priorities for the next three to five years?

We want to consistently reach 1,000 homes a year. That’s our moonshot goal, to get to 1,000 homes annually and sustain it.

We have several thousand lots under entitlements. We sell lots to national homebuilders, and we also build communities in our master plans. We do a lot of development, and we also build communities to rent.

So the goal is 1,000 homes a year built, and selling between 2,000 and 3,000 lots per year.