Here's the situation: You want to live downtown, but all the neighborhoods you've looked at are way out your price range. Wouldn't
it be cool if you could spot the next hot neighborhood before its hot? You'd
get a great apartment for cheap, and end up living in one of the most desirable spots in town.
This is exactly what happened to New York City's SoHo. Back in the 1970s, SoHo was little more than a warehouse district.
Then, artists moved in because the rent was so cheap, and they got bargain prices. Now? Its one of New York's trendiest neighborhoods.
Renters can come out way ahead if they end up renting in an up-and-coming neighborhood. Usually, these neighborhoods are run
down, neglected, and might even have high crime rates. Think of Cabbagetown in Atlanta, or Roosevelt Row in Phoenix. Both
of these neighborhoods used to have boarded up houses and a serious drug problem. But now, after a revitalization, they
look and feel completely different.
Spotting these future hot neighborhoods can be a challenge, though. What if you rent in a run down area, with the hopes of
a revitalization that never happens? When apartment hunting, here are 6 things to look for, as a clue that a bad neighborhood
is on its way up.
Signs of an Up-and-Coming Neighborhood
1. Artists and Musicians
Artists and musicians typically lead the way to a neighborhoods resurgence because they look for cheap rent. They
move into an area to live and work. Then, other people follow. Why? Simply because artists and musicians are cool. They often
make their neighborhoods look cool, and people like to be near that creative energy. Eventually, the area starts to build
up as more and more people flock in. Things get hip, and home values start to skyrocket.
2. Major Renovation
Big cities like New York usually have warehouses and parks that are neglected. If the city decides to clean up an area, such
as a waterfront, large park, or warehouse, this is a sign that the neighborhood might be on its way up. If the city is willing
to invest its money into an area, then others will follow. Head to town meetings to find out where the next big projects are.
Also, look for buildings that are being renovated.
3. Closeness to Other Hip Neighborhoods
If you see a neglected neighborhood fairly close to a hip neighborhood, chances are that it will eventually become trendy
and cool as well. This is because development expands outward, especially as prices in the neighborhood center start to rise.
Rents and home values go up, so the artists and musicians move outward, still seeking cheap rent. And the cycle of redevelopment
4. Local Prices
Talk a stroll through local stores and restaurants, and ask workers if prices have gone up in recent years. If prices have
steadily increased, especially on things like coffee, you can bet the reputation of the neighborhood is going up as well.
5. Young People
In addition to looking out for artists and musicians, ask your real estate agent or city planners where the young people are
moving to. Young people are often priced out of established neighborhoods, which is why they often lead the way to a neglected
neighborhoods resurgence. Once they move in, restaurants and bars often follow.
6. A Trendy Restaurant or Art Gallery
Keep an eye on local reviews of restaurants, coffee shops, and art galleries. When one pops up in a bad neighborhood, its
a good sign that the area is on the up-and-up. If that place brings in a lot of business, other shop owners and restaurateurs
will follow suit, along with home buyers.
Keep in mind that renting in an up and coming neighborhood takes long-term vision. It can take a decade, or more, for prices
and reputation to change. And, there's no guarantee that they actually will. A change in zoning laws, or migration elsewhere,
can easily stall development in a big way. Also, neglected neighborhoods often have high crime rates.
Make sure you fully understand that rentng here could save you money but might pose potential risks for you and your family's
safety. Sure, you might eventually end up in your city's most desirable neighborhood, but you may have to live in a high-risk
area for a few years. Examine all the options and signs before you make your decision.