How To Tell If A Neighborhood Is Up And Coming
Jun 29, 2021
How To Tell If A Neighborhood Is Up-And-Coming
Everyone wants to be able to invest in a home that appreciates in value and makes money for the owner. Or maybe your dream is to live in a trendy part of town, but you know it's out of your financial reach.
Either way, you're looking to buy in an up-and-coming area of town. But how do you tell if a neighborhood is up-and-coming, and what does it even mean?
We'll give you the tools to understand and identify up-and-coming neighborhoods so you can be ahead of the curve.
WHAT IS AN UP-AND-COMING NEIGHBORHOOD?
Up-and-coming neighborhoods are areas that are primed for revitalization.
Prices for homes in these areas are low, which makes it affordable for many first-time homebuyers. It's also great news if you're looking to purchase a rental property or flip a house to turn a profit.
They are neighborhoods that exist usually in larger cities or urban metro areas. Up-and-coming neighborhoods can certainly be found in smaller cities and more rural areas, but areas poised for revitalization are easier to spot and more common in urban areas.
Homes in these neighborhoods are often neglected or run down. The crime rate is likely higher than in other parts of the city.
SIGNS TO LOOK FOR
Construction: If you have an inkling that an area might be up-and-coming, take a drive. Look around the neighborhood for homes with dumpsters outside, or other signs of construction (like new businesses going in the area) and home improvements.
A business will do extensive research on an area before deciding to build, so it's a great indicator that the neighborhood is ready for growth. A visit to the city planner's office can get you information on commercial development applications.
The opposite is also true, though. If you find many vacant or boarded up buildings, it's likely an indication that an area is in decline.
Declining Days On Market: When homes spend less time on the market, it's a good indication that the area is doing well. If homes in the area have been on the market for 120 days or more, it's not a good sign. But as they begin to decline and start nearing 30-days on the market, it's an indication that the neighborhood is up-and-coming.
Lowering Crime Rate: It seems obvious, but lower crime rates make for safer and more secure neighborhoods, which leads to higher property value.
When searching for up-and-coming neighborhoods, look for those that have previously had high rates of crime, which are now declining.
Many newspapers will publish data on crime reported in areas around town, or you can search for heat map tools online to help you track crime in an area. Crime data is also available from police stations.
Artists Moving In: Artists, musicians, and other creatives are often attracted to areas where rent is cheap so they can live, work, and create all in the same place. This often leads to a revitalization of an area as the artists begin improving the neighborhood with their work and drawing in others - as well as businesses that cater to them.
The cool factor of artists can't be understated. Start keeping tabs on the local art scene (or talk to people who do) to get an idea of where local artists are living.
Nearby Up-And-Coming Neighborhoods: One surefire way to spot an up-and-coming neighborhood is to look at areas that are already trendy.
Hip areas often expand outward, so spotting an up-and-coming area early could mean that you can still get into an outlying neighborhood. Look for neglected areas in the periphery, as they are likely to become a hotspot, too.
Ask A Real Estate Agent: Real estate agents live and breathe the housing market. These folks are usually the first to identify up-and-coming areas.
Make sure you speak with a realtor you trust - who isn't just trying to make a sale - who has a proven track record of selling homes in quality neighborhoods. Check their track record and consult with their former clients.
ORIZON CAN HELP YOU SPOT THE NEXT UP-AND-COMING NEIGHBORHOOD
If you're in the market to purchase a home in an up-and-coming neighborhood, our experts at Orizon Real Estate can help.
We spend a lot of time studying the housing market in northeast Indiana, and we want to help you find your next (or your first!) property.
Call us today at 260-248-8961 and speak with one of our talented agents about the home of your dreams.