Population: 265,358
Market Phase: Rebalancing / Historic Renovation
St. Petersburg has stabilized in 2025 after a period of rapid appreciation. Inventory has risen significantly (up >200% from 2023 lows), creating a balanced market where buyers have choices.31 The market is defined by its vibrant downtown and historic housing stock in neighborhoods like Historic Kenwood and Old Northeast.
The primary opportunity for lenders here is renovation financing. The historic bungalows that define St. Pete’s charm often require substantial work to update systems and roofs for insurance purposes. Additionally, the city’s progressive zoning regarding Accessory Dwelling Units (ADUs) creates a unique niche for construction loans to add density to existing lots. The rental market remains strong, supported by a growing downtown workforce, making DSCR loans a viable exit strategy for flips or a primary strategy for buy-and-hold investors.
St. Petersburg has firmly established itself as Florida’s “Sunshine City,” boasting a vibrant arts scene, a bustling downtown, and sought-after waterfront living. In 2025, the market has stabilized, creating a strategic window for investors to acquire properties in premier neighborhoods like Old Northeast and Historic Kenwood at fair valuations. Capital Funding serves as St. Pete’s trusted hard money lender, providing the specialized renovation and construction financing needed to unlock value in this unique coastal market.
Revitalizing History with Fix and Flip Loans
St. Petersburg is famous for its historic architecture, particularly the Craftsman bungalows of Historic Kenwood and the Mediterranean Revival homes of Old Northeast. While these homes command premium prices when fully restored, unrenovated units often linger on the market due to insurance challenges and deferred maintenance.
This is where Capital Funding’s Fix and Flip Loan Program shines. We understand that the value of these properties lies in their potential, not their current state.
Bridge Lending for Coastal and Waterproof Assets
Investing in a coastal city like St. Pete often involves navigating flood zones and complex valuation metrics. Whether you are acquiring a waterfront estate in Snell Isle or a beach condo on the barrier islands, our bridge loans provide the liquidity to secure the asset quickly. These short-term loans (12-24 months) are ideal for stabilizing a property—whether through renovation or solving title/insurance issues—before refinancing into long-term debt.
Construction Lending and ADU Financing
St. Petersburg is a leader in urban density, with favorable zoning laws that encourage the construction of Accessory Dwelling Units (ADUs) and garage apartments. This creates a massive opportunity for investors to force appreciation and increase rental yield by adding square footage to existing lots.
Capital Funding’s construction loans are tailored for these infill projects.
Rental Loans for the Urban Core
The demand for long-term rentals in St. Pete remains robust, driven by young professionals drawn to the downtown lifestyle. Neighborhoods like Grand Central District and Disston Heights offer solid cash flow opportunities. Our DSCR Program allows you to finance these rentals with ease, requiring no personal income verification and offering 30-year fixed rates to protect your cash flow.
Partner with St. Pete’s Private Lending Experts
Capital Funding brings a deep understanding of the St. Petersburg market to every deal. From the nuances of historic renovation to the specifics of coastal construction, we provide the asset-based lending expertise you need to succeed.
Get Funded in the Sunshine City
Ready to start your next project in St. Pete? Contact Capital Funding today for a customized loan quote and experience the speed of private capital.
