In today’s fast paced world, we are flooded with opportunities. There are countless options to choose from in nearly every aspect of life, it can sometimes be hard to decide. The same goes for where you’ll buy a home — there are so many different places to live, from: big cities and small suburbs to sleepy rural hamlets and rugged country living. Buyers are often looking for a neighborhood that hits a certain sweet spot: One that isn’t too expensive or overcrowded and has potential for growth. This charming concept is also known as an up-and-coming neighborhood.
What is an up-and-coming neighborhood?
An up-and-coming neighborhood is more than just a location, it’s a glimpse into a better future. It’s a neighborhood that’s on the brink of blooming into something greater. It isn’t necessarily defined by its current state or status, but rather what it’s projected to become.
There are a few ways to spot an up-and-coming neighborhood:
- Signs of construction: If you’re noticing new homes, buildings and restaurants being built, this is a sign that the neighborhood is developing. Oftentimes in up-and-coming neighborhoods, you’ll start to see more modern homes and buildings being built alongside older, potentially outdated, structures.
- Younger people moving in: If you notice a lot of young folk are moving to a new city or neighborhood, this is often a sign that the area is up-and-coming. Young people are often viewed as the “trendsetters” and are more likely to prioritize affordable neighborhoods with potential. Not to mention, developers follow where young people go. If you see young people flocking to one area, it’s likely you’ll see new trendy spots popping up soon after.
- Close proximity to a popular area: Another indicator of an up-and-coming neighborhood is its proximity to big cities or other popular neighborhoods. This provides the convenience of being relatively close to the city’s attractions without paying the prices you’d likely pay to live directly next to them.
- Prices increasing:While it may be hard to spot a price increase if you don’t already live in the neighborhood, if you visit an area and ask around, the locals will likely be able to tell you if they’ve seen price changes in recent years. As prices and cost of living go up, the quality of the neighborhood may be going up too (outside of typical economic shifts that may impact value).
What is a transitional neighborhood?
While “transitional” and “up-and-coming" neighborhoods are often used interchangeably (as both represent neighborhood improvement), there is a slight distinction between the two concepts. As the name suggests, transitional neighborhoods are neighborhoods going through a change. In an ideal scenario, this is a positive transition. The neighborhood may have new community initiatives, urban renewal projects and other revitalization efforts starting to take shape. If these prove to be sustainable over the long term, the area may eventually become an up-and-coming neighborhood that starts attracting more investment and development.
Buying a home in an up-and-coming neighborhood
If you’re curious about buying a home in an up-and-coming neighborhood, you’ll be happy to know that it’s very similar to buying a home in any neighborhood. Ultimately, research is your best friend. If you’re set on buying a home in an up-and-coming neighborhood, you may want to begin your journey by:
- Shopping around for your financing: Shopping around for different loans helps you determine where you may get the most competitive rate and find a loan product that works for you.
- Connecting with a real estate agent: A real estate agent may have insight on an up-and-coming neighborhood that you may not come across in your own research. They can help set you up with homes that meet your target criteria.
- Submitting an offer on a home:Once you find a home that meets your “must-haves” list, it’s time to submit an offer. Your real estate agent can help you draft your offer letter and any proposed contingencies. The seller will likely request a preapproval letter within the offer as well.
- Applying for your loan: After submitting an offer, it’s time to officially apply for your loan.
- Closing on your home:If all goes according to plan — i.e., you come to an agreement with the seller and your loan gets approved — you can move on to the closing process.
Up-and-coming neighborhoods are neighborhoods experiencing rapid growth and becoming more and more desirable places to live. You may be able to identify an up-and-coming neighborhood by signs of construction, young people moving in, close proximity to a popular area and price increases in local properties. If you’re interested in buying a home in an up-and-coming neighborhood, consider connecting with a real estate agent to assist you on this journey.