Is Your Neighborhood Trending? Here Are 7 Main Areas to Watch
Whether you’re in the midst of researching the perfect neighborhood for your new home, or you’re a longtime resident of your area, you’re likely aware of the trending patterns in up and coming neighborhoods, some of which are obvious and some of which are subtler and more difficult to spot.
Quick indicators of a city about to boom are Opening Soon signs above coffee shops, restaurants and whatnot, but there are a handful of other signs that are sometimes overlooked such as the relocation of large companies, numerous construction projects, a slew of millennials moving in, rapid Airbnb price hikes, and more. With renovation and improvement in a district, it’s only a matter of time before rental prices rise, which is in your favor if you own your home or apartment building. When it comes to ownership, this may also indicate that it’s time to get in on the ground floor before property prices become unaffordable.
Real estate and urban development are not only exciting sectors in a region, but they also move quickly. Within a week you could see 10 new “For Sale” signs alongside a multi-family complex built faster than you can say looks like I moved to the right city. Once these developments begin, they won’t slow down. Signs of these advancements are strong indicators of wider economic growth and give the community an idea of how the economy in said area is doing. Your favorite quaint city may not be so quaint for long, but that’s more of a reason to celebrate than anything else. Here are seven signs that a boom is coming to your city or town.
If a region’s population has spiked in the past year or so, you’re looking in the right spot for your new home or investment opportunity. Unexpected cities such as Enterprise, NV, Sugar Land, TX, and Frisco TX have the highest population growth since 2012 based on a Wallet Hub study. One thing these three towns have in common is their close proximity to a large city, all within a 45-minute drive. Smaller, less established neighborhoods on the outskirts of larger metropolitans are definitely regions to look out for when considering purchasing a new property, as it’s imminent for the real estate prices to go up. As Chris Ryan, founder of Beyond Properties Group, shares, “Many fortunes have been made this way.”
A sure sign that your neighborhood is on the up and up are large corporations relocating or opening new offices in the area. Talk of an Amazon headquarters opening in Queens last year stirred up a lot of discussion amongst residents, but ultimately was a (non-surprising) sign that boroughs surrounding NYC were continuing to become more and more popular. Other huge corporations such as Toyota, Frito-Lay and Pizza Hut have packed up and headed for Northern Texas, which in turn means there has been consistent growth in those communities with a thriving housing market. The opportunity for more jobs brings the need for additional housing.
Where the cultural vanguard go; follow. Creatives such as artists, established chefs, performers, etc. prefer communities with a plethora of amenities, so their direction is most likely a sign that an area is up and coming and soon everyone else will catch on. Convenience paired with the lower prices of a not yet quite established city checks all the boxes for newcomers from all over the world.
Once you start to see more amenities and conveniences reach your neighborhood such as advanced public transit, park renovations, new public community spaces, delivery services, and dedicated bike paths, you know a boom is on its way. These amenities are some of the great advantages to living in a city, and they only multiply as population increases. Companies such as Task Rabbit and Postmates take note of trending cities and expand into them when they know it will be a fruitful opportunity.
Tracking price hikes in Airbnb rentals is a great way to determine the growth of a city or town. By keeping an eye on these prices as well as any newly added rentals, you’ll be able to decipher if prices are consistent, declining, or hiking up. The previously mentioned promising city of Enterprise has had a 6% rental growth since the Summer of 2017, steadily increasing each year. Airbnb analytics also give you a good idea of why prices are more expensive at certain times of the year. Indio, California, where the popular music festival Coachella is hosted, for example, has a very inconsistent rental growth and is -34% overtime due to the one surge a year in April where the revenue nearly triples.
If new shops, restaurants, and bars are opening in the blink of an eye, it’s likely these trendy spots are attracting newcomers and boosting tourism in the area. The key to a thriving city is desirable places that are easily accessible by foot or public transit, creating a fun “downtown” vibe. When a neighborhood’s culinary scene begins to thrive, other additions will soon follow such as hotels and multifamily properties, all contributing to the urban environment. In addition to new storefronts, multiple construction projects and/or road work is a hint that a neighborhood is about to take a turn for the better. With updated buildings, additional housing, and more accessible streets comes increased property values.
If you’re starting to notice your neighbors are getting younger and millennials are crowding your grocery store lines, chances are your humble city is nearing a boom. No one can argue with the things that attract millennials: trendy boutiques, bars, restaurants, walkability, convenient public transit, and cheaper rent. A youthful, vibrant community continues to attract new businesses as the population grows. As Forbes Real Estate Council explains, “…Others say to follow the millennials as they have their eye on the pulse of what is hot and could be a huge factor in predicting new markets to invest in.”
As more businesses emerge in your area, city governance will take notice and dedicate more time and resources to your neighborhood while real estate developers will start buying property right before the values increase. If you’re already a homeowner, you’re ahead of the game. Your home and property value may increase rapidly, giving you many options on how to maximize your finances, such as renting out your space, selling your home for a profit, or just continue to increase the value of your assets. If you’re considering homeownership in one of these areas, now would be the time.
The incoming of new businesses doesn’t have to be nerve-racking for current residents—instead, get involved and benefit from these changes while ensuring your neighbors (both old and new) do as well. When a neighborhood is on the verge of booming, it’s the perfect time to get your foot in the door and purchase property. These areas may not be affordable for long, so what are you waiting for?