IRVINE, Calif., Nov. 10, 2015 /PRNewswire/ -- Center Street Lending, one of the largest private money lenders to the residential investor community, is adapting its loan products and markets in order to help clients move more quickly to leverage opportunities in changing rental markets.
U.S. Census data reveals that the homeownership rate is the lowest it's been in nearly 50 years. This decrease in homeownership is creating significant opportunities in the rental market for residential real estate investors. The Urban Institute, projects that renter households will grow from 40.7 million in 2010 to 47.9 million in 2020 and 53.7 million in 2030.
"The residential real estate market continues to be an attractive investment opportunity, especially for investors who capitalize on market trends and are poised to act," said Brandon Hammermeister, Vice President of Center Street Lending. "Center Street closely monitors the real estate market and has developed products and strategies to help our clients move quickly when properties become available to maximize their rental portfolio returns and invest in growing markets."
Center Street Lending shares the following insights for seasoned and prospective investors in the single-family residential rental market:
- Millennials are opting for residential rental properties due to factors such as the flexibility to relocate for jobs and the ability to offset the higher costs of home ownership. The Joint Center for Housing Studies of Harvard University (JCHS) projects that millennials will form more than 20 million new households between 2015 and 2025, most of which will be renter households.
- Gen Xers continue to opt for single-family home rentals over apartment living. For this generation, the single-family home rental market has seen steady growth and is expected to grow an average of nearly 3 percent per annum through 2019, according to Moody's Analytics.
- Market data from RealtyTrac indicates the highest rental returns in millennial-magnet markets are found in Baltimore, Md., Richmond City, Va. and Philadelphia County, Pa. According to recent data, the best markets for renting to Gen Xers include Atlanta, Chicago, Jacksonville, Fla., Little Rock, Ark. and Orlando metro areas.
Observing these market conditions, Center Street Lending has expanded its service area and its portfolio of rental loan products for residential rental properties. The asset-based short-term loan programs are designed for income-producing homes that investors are looking to finance and hold for 3 to 5 years. Rental loans from Center Street Lending can typically close within one week. Center Street offers rental loans in active rental markets including Calif., Ariz., Wash., Texas, Colo., Va., Md., N.C., and Fla.
About Center Street Lending
Center Street Lending (CA BRE 01883377, NMLS 905781) is one of the largest private money lenders offering residential investors financing for rental and fix/flip properties at attractive rates. For information visit: www.centerstreetlending.com.
Center Street Lending
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SOURCE Center Street Lending