As Austin continues to grow at a rapid rate, you’re likely to drive through a neighborhood and wonder when it developed from a bleak land to an area bursting with new businesses and high property values. House inventory is a challenge for those looking to purchase, so buying a fixer-upper is one way to buy into an up-and-coming neighborhood. Here are the signs the community is poising to turn the corner from frightful to fabulous.
Has a new high-end food market or organic restaurant popped up lately? It’s worth looking into a community if retailers are flocking to the nearby storefronts. As new businesses grow (especially supermarkets) the housing industry generally follows.
Take note of areas where municipalities are governing the appearance of buildings more closely. Strict building and appearance codes indicate the demand will be high for business owners and homeowners to maintain the appearance of their property, making the neighborhood more desirable.
You may hear phrases like, “The area is really growing,” or, “Now is a good time to get into that neighborhood,” which means the perception of an area is changing. A boom in new business, stronger public safety (less crime) or a new school can drive property values up.
History repeats itself
New construction homes have seen a surge lately, but more established neighborhoods always make a comeback. Neighborhoods with Tudors, Victorians, Spanish-style homes, or even Mid-Century Moderns see periods of emptiness, but those neighborhoods are now in very high demand. Communities with unique houses and mature landscaping lure homebuyers in to pay a premium, so if you find a neighborhood with an open property – add it to the must see list!
Check out the unemployment rate in the community. See where leaders are making an investment in jobs and which industries are moving into the area. Where there’s an increase in job opportunities, property value will follow.
Schools being built
If new schools are being built or current ones renovated, that’s a great sign of growth. When a school district needs new or better schools, there’s likely an expected population boom. Look in neighboring communities for home growth or a property value surge. If school leaders are planning for more students, you could be on the fringe of an up-and-coming neighborhood.
Short market time
What’s the average time a home stays on the market in your desired area? Get a brief history of the real estate trends in the area. If homes were once sitting for months but are now selling within weeks or even days, there’s a growth trend in the area. Consider the opportunity of buying into the area while housing prices are still reasonable.
There are a number of reasons to consider an up-and-coming neighborhood for your next home purchase. Jobs are plentiful, housing prices are reasonable and the city is pumping cash into the area’s infrastructure. Work with your real estate agent to find a developing neighborhood and benefit from future growth.