Economic Reports Show Increasing U.S. Home Prices, Demand for Rentals Continue to Rise
Dallas, Texas: According to national economic reports, rising prices in the housing market have forced many potential first-time homeowners to postpone their home purchase, and instead, resort to renting properties. This week, Bloomberg published data issued by Harvard’s Joint Center for Housing Studies and CoreLogic, and the reports painted a picture of increasing home prices and a demand that is not being met with supply. While landlords are seeing a significant payout from the present situation, it has become a tremendous burden for renters to acquire housing that fits their budget.
Whether for sale or rent, a lack of affordable housing has brought the current market to heights not seen since pre-recession 2007. Data collected by the State of the Nation’s Housing and Harvard’s Joint Center for Housing Studies show 26 percent of renters in the U.S. were required to pay at least half their income to landlords in 2014. That number has increased 20 percent since 2001 and reflects a growing number of people who are paying rental prices that have far outpaced their wages.
While renters with median incomes are indeed keeping up with the rising tide, Americans with mid-lower incomes are especially restricted, and are experiencing the biggest impact of such a tight market. Renters who are already under financial strain have many challenges regarding housing quantity, but also quality, as the most affordable housing options fall into less-than-desireable neighborhoods or condition. Still, the economically challenged are forced to pay rent prices that seem to be ever-increasing, and drain most of their income.
It is this current state of supply versus demand that has posed an ideal situation for real estate investors. By investing in distressed homes to flip or rent, these investors can lessen the market’s grip on renters while benefitting economically, themselves. Through the rehabilitation of foreclosed or distressed property that is sold or rented, real estate investors are likely the best solution to answer the demand for affordable housing.
To assist investors in this venture, Sherman Bridge Lending is offering financing options for these property investments. Most banks will not finance repairs for an investment property, but Sherman Bridge provides funding for any level of distress. Investors are given the opportunity to rent out their property with the option of 30 years to repay their loan, and are provided significant profit when they fix and flip, or fix and rent, their property.
Investors are encouraged to use Sherman Bridge's comprehensive resources to compare hard money loans to find the best value. They can also see their loan's term, point structure, and personal rate in just a few clicks. With such state-of-the-art tools, investors can receive the funds they need for their investment in just seven days.
These investment ventures are backed up by 2016 CoreLogic housing data that ranks Denver, CO as the metro area with the greatest home appreciation: 10.6 percent; North Texas’ rates increased 9.3 percent atop prices that had already risen more than twice the national annual appreciation. Ranked third, Boston's home prices increased 8.2 percent.