Across the country, Americans are rediscovering the benefits of urban living. As a result, some neighborhoods are experiencing rising rents and property values. Smart and savvy property investors are in a position to benefit from these trends. The following 3 urban neighborhoods provide excellent growth potential for property buyers.
Seattle – Zip Code 98108 (Beacon Hill)
The southeast Seattle neighborhood is bordered by Interstate 90 to the north, Interstate 5 to the west, Rainier Avenue to the east, and Martin Luther King Junior Way to the south. It has been named one of the Great Places in America by the American Planning Association (APA). The quaint neighborhood is known to locals for its turn of the 20th century homes, walkable streets, craftsman bungalows, and box houses.
In the 50s and 60s, Beacon Hill was nicknamed “Boeing Hill” due to the large number of the company’s employees residing in the area. However, many employees moved to the suburbs in the decades to follow. Newly arriving immigrants looking for good schools and a convenient location moved in. Today, the neighborhood is home to significant Chinese, Filipino, Vietnamese, and Korean communities.
Rents across Seattle have experienced rapid growth. As a result, Beacon Hill is seeing an influx of artists, professionals, and young families looking for urban amenities in a convenient location. Plenty of opportunities remain and investors can reap significant returns by accommodating the increase in demand.
Austin – Zip Code 78702 (Central East Austin)
Austin’s 78702 is bound by Lady Bird Lake to the south, Martin Luther King Jr Boulevard to the north, Interstate 35 to the west, and Airport Boulevard to the east. Locals have flocked to the area for years to visit the George Washington Carver Museum, Swedish Hill Historic District, and Lady Bird Lake for fishing and bird watching. Now, the neighborhood is experiencing rapid residential growth. Newly minted professionals in one of the nation’s fastest growing cities are drawn to the neighborhood’s downtown location and proximity to Lady Bird Lake, a scenic reservoir on the Colorado River.
Chicago – Zip Code 60626 (Rogers Park)
The Rogers Park neighborhood on Chicago’s lakefront experienced rapid growth during the condo boom as landlords converted vintage 1920s 3-flats and 6-flats to condos. However, the bust in 2008 depressed values and left many under water. Prices have since stabilized. 60626 even experienced one of the biggest drops in negative equity in Chicago, an indication of looming property value increases.
The north side neighborhood is bordered by Chicago’s exclusive North Shore suburbs to the north, booming Little India to the west, Edgewater and trendy Andersonville areas to the south, and the beaches of Lake Michigan to the east. It is also home to Loyola University and a short elevated train ride from Northwestern University, making it a popular neighborhood for college students and professors.
Residents enjoy many of the neighborhood’s independently owned coffee shops, family run taquerias, and theatre venues. Downtown professionals find Rogers Park especially convenient. Though geographically farther from the city center than some other desirable areas, the local commuter train takes less than 20 minutes to arrive in Chicago’s central business district from the Rogers Park stop.
Rogers Park, relatively speaking, is still an island of affordability surrounded by some of the area’s most expensive real estate. The high volume of rental stock has kept prices in check, but the window for investment is quickly closing as local developers have pegged the area for rapid property growth in the near future.