Finding a home in the right neighborhood is necessary, but not always easy. It can be difficult to get into some of the already hot neighborhoods. However, it may be possible to spot a soon-to-be hot area. Here are a few signs a neighborhood is about to be very hot.
The Hip Crowd
Often, musicians, actors, artists, writers and other individuals considered to be in the hip crowd flood a neighborhood before it becomes hot. They will be the first renters to enjoy the areas before the rest follow. This crowd is drawn to the beauty not always seen by others and they look for housing that is affordable.
Another huge sign of an up-and-coming hot neighborhood is the revitalization projects found throughout the area. These projects show that the city is investing in the area and trying to make it more appealing.
If a neighborhood starts to see developers putting up office buildings, high rises and other types of projects, it’s a very good sign. Developers often flock to areas they know will be hot and they usually make it there before the neighborhood becomes a success.
An Increase in Rent Rates
When an area starts to see the rent rates rise, it's a sign the neighborhood will be hot very soon. Those investing in rental properties often notice the soft spot in the market first and will raise rents when they think the market will support a higher price.
Retail and Restaurants
When restaurants and retail shows start to remodel or start to flood an area it's a good sign. Trendy shops and specialty restaurants will normally help make a neighborhood hot.
Other signs of a soon-to-be hot neighborhood include:
- Commute to major work areas is short and easy
- Good mixture of historic and new
- Rehab projects funded by the government
- Transitional area near other hot neighborhoods
- Community pride
If you're looking for a home in one of the up-and-coming neighborhoods, these are just a few things to look for. Neighborhoods displaying these characteristics may be hot very soon.