How to Spot the Next Up-and-Coming Neighborhood
Do you like being on the forefront of trends? Especially those that could put you on the ground floor of a hot real estate market. Here are several signs to watch for that might indicate a neighborhood could be on the upward swing.
Watch Wine Wednesday and Real Estate as We Discuss Spotting Up-and-Coming Neighborhoods
Proposed or In-progress Public Investment
Municipalities often serve as a catalyst for development in previously forgotten communities. Tax credits and public works projects are common tools governments use to get the proverbial ball rolling. This can include infrastructure improvements like roads and sanitary systems as well as financial incentives for individuals and entities to build/rehab properties within certain boundaries. Watch outlets like newspapers and websites that cover your region for announcements of new incentives and projects.
Cranes Popping Up
Have you driven through the Short North or Downtown Columbus lately? Can you even count the cranes or drive down a street without being forced into a detour? A February 2017 Columbus Underground article estimated $734 million under construction in Downtown Columbus at [that time], and another $1 billion in development in the pipeline. It’s no coincidence that Columbus Business First pegged rent growth in Columbus at 3.5 percent while the country on average declined by 2.3 percent. Private investment can be a huge indicator of things to come, but get in early to reap the biggest rewards.
New Companies Moving In
One would have to be living under a rock to not hear the buzz surrounding Amazon’s HQ2 project. The company announced that they would invest $50 billion to build a second headquarters. HQ2 will ultimately be split between Long Island and Crystal City, VA. Real estate agents and others are noting that the real estate boom in those areas has already started. While this may be an extreme scenario, but it serves as the perfect example for how a company can impact a neighborhood, or region in this case.
New Grocery and Retail Development
A Zillow study looking at the 24 months before and 36 months after Trader Joes and Whole Foods openings showed that nearby homes appreciated 4.5 percent more than the average home in such regions by the 18-month mark. You will often see these developments on the outskirts of town before the masses start to move in.