Blog

Here’s how to spot a soon-to-be-hot neighborhood.

For some home buyers, selecting a diamond in the rough is not only a welcome challenge but marks the beginning of an up-and-coming neighborhood. Getting into a neighborhood before it becomes the next big thing is the key to stretching your dollar and making a great investment!

If you skipped that older area with rundown houses, you may be surprised to learn that a quick revitalization can turn the whole neighborhood around. Revitalization may take years, so be prepared for a long hold and not the quick flip.  Spotting these future hot neighborhoods is a challenge, so we’ve compiled a few indicators of an up-and-coming area.  

City-funded improvements and renovations
Of course, if the City decides to clean up, invest money, and improve an area, good things generally follow. More businesses and people are likely to invest in an area that has recently been renovated, whether the area was previously sketchy or not. Attend town and area planning group meetings to find out when the next big projects are scheduled.  Be on the lookout for houses that are being remodeled. Investing back into a home can signal that homeowners are invested in their own community.  Property values will increase thanks to their renovations.

Trendy businesses are moving in
When a co-working space, an organic food store, or even a fancy coffee shop moves into the neighborhood, it’s a sign that the area is changing for the better. Small boutiques, specialty stores, and larger businesses attract locals and tourists alike. Watch when the retail industry moves to emerging areas with strong fundamental businesses.  Look for strong “anchor tenants” that drive business to the mall.  For instance, is a Trader Joe’s, Whole Foods or Home Depot moving in?  These companies do their research before they commit to a neighborhood.  Their commitment can add value to the surrounding neighbors.

Local prices
If a standard cup of coffee in one area has risen in recent years, you can bet the reputation of the neighborhood is going up as well! Young people, artists, and musicians alike can improve an area’s reputation as hip restaurants and fun coffee shops often follow the target market.

Are you looking to move into an up-and-coming neighborhood without the high-end price tag?  What are you looking for? Contact Jenn Blake Real Estate Group at Pacific Sotheby’s International Realty in San Diego, California at 858-663-6788.