<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=4052188&amp;fmt=gif">

real-estate-hot-neighborhood-1

Recognize a Super Affordable Area That's About to Be Super Hip

The dilemma of any urban dweller trying to live on a budget is finding a neighborhood that is happening yet affordable. It sometimes seems like the search for the Holy Grail.

You certainly want to be able to have some hip restaurants, shops and bars nearby, but you don’t want to live off instant ramen just to be able to pay your rent. 

The problem is that by the time the lease on your current place is up and you check out that cool pocket of the city you’ve been hearing about, you’re too late – there’s a Starbucks on every corner and the rent prices are already through the roof.  Game over.

So how do you get in while the getting’s good? 

Next time you’re on the move, use these tips to help you identify the next up and coming area before it’s fully established and fully out of your budget.


1. Proximity 

Here’s the thing about so-called “up and coming” neighborhoods: they feed off the coolness of cool areas nearby.  Hip areas almost never spring up in the middle of urban wastelands.  It’s a cycle actually – an area is sketchy; then it slowly achieves up and coming status; then it gets gentrified and prices go up; then it becomes sort of uncool because young people can’t even afford to live there anymore. The whole process usually takes around 10 years.

So what happens next? Those that are willing to take a risk and charter new territories start setting up shop in the next neighborhood over that’s a little sketchy but way more reasonably priced. And the whole cycle begins anew. So, if you want to get in at the right time, look to the uncool areas that border the hot hoods because they’re likely to go the same way soon.

2. Artists 

real-estate-neighborhood-scoutingThe people that generally pioneer the next great neighborhood are artists. Why? Unless they achieve stardom, most working artists are living on a tight budget and need to find areas that are cool but cheap. If you’re scoping a new area, look for hipster, artsy types walking around as well as little art galleries that seem to be run on a shoestring. 

If you really want to infiltrate the scene, do a roommate search on Craigslist and use search terms like “artist loft,” “co-op/cooperative,” and “art studio” and see which neighborhoods are popping up. Chances are they’re the ones you want. 

3. Renovations

You know who wants to know about the next hot spot even more than you do? Developers. If they can buy up property, renovate it and rent it out for a song, they’re in. If a neighborhood is on the rise, you can bet that it’ll have a good amount of new construction and renovation happening. While it may be unsightly at the moment, it’s an excellent sign of good things to come.

real-estate-neighborhood2

4. Hip Spots 

The other folks that are looking for the same thing you are is business owners, especially new ones who can’t afford the high commercial rent in already established areas. When you see a hip coffee shop, restaurant or bar open on a block that looks otherwise shady, it’s probably because the owners have their finger on the pulse and are investing in the future.

In fact, I still remember when I was a teenager and my friend’s artsy parents opened a coffee shop in what seemed like a not cool and not very safe part of Chicago. Within 5 years, the area was booming and they had a 2-hour wait on a table for Sunday brunch. Put your money where they put theirs and you’ll be ahead of the game.

5. Crime Decrease

Zones that are in that transitional phase you’re looking for probably still have some crime, but it’s steadily decreasing, which means that the area is changing. Use the Trulia crime heat map to get an idea of what an area is like (you can also view median rent prices and median resident age on the same map). Here’s the catch though, and there’s no easy way to say this:  the areas that are cool and affordable will probably be red or orange on that map… meaning crime is prevalent there. 

It’s an unfortunate reality. Up and coming neighborhoods are inherently more dangerous. The areas that are both totally safe and full of stuff to do are, unsurprisingly, pretty darn expensive too. While it’s great to move into an area that’s about to be desirable, there are some drawbacks and this is often one of them. 

6. Real Estate Expertise

The last tip is to cheat a little. Besides developers and business owners, another group that is usually keyed into neighborhood trends is real estate agents. Meet with either a leasing or selling agent and pick their brain about which areas seem to be changing for the good but still offer reasonable living prices. Even if you’re not ready to rent or buy a place at the moment, you can get an idea of a few places to check out for yourself.

You don’t have to be a trend spotter or an urban planning expert to know which neighborhoods are up and comers; you just have to know what to look for. As long as you’re willing to put up with the area’s semi-awkward transitional phase, you’ll be primed to live in a fantastic place you can actually afford. 

 


noah-tennantAbout the Author:  Noah Tennant is a professional leasing agent and the owner of Chicago Apartment Leasing Group, a rental agency that specializes in luxurious units in both established and hot up and coming neighborhoods in the Windy City.  He also frequently contributes to several online publications and enjoys writing about real estate trends and apartment lifestyle tips. To find out more, check out www.Chicagoalg.com

You may also like

Next Round of HIPAA Audits Scheduled for Early 2015
Next Round of HIPAA Audits Scheduled for Early 2015
9 October, 2014

While the second round of HIPAA audits might not be here as soon as expected, they’re coming soon. And it’s important to...

VIDEO: Advisors Need to Get Creative to Meet Boomers' Needs
VIDEO: Advisors Need to Get Creative to Meet Boomers' Needs
6 November, 2013

Most of your clients probably have a picture of retirement that goes something like this—golf, beaches, vacations, relax...

SIGNiX thought leader to speak at technology conference
SIGNiX thought leader to speak at technology conference
4 February, 2013

We’re excited to announce that our very own John Harris will speak at the 2013 Technology Tools for Today (T3) Conferenc...