We already know that the top ten most popular Anchorage neighborhoods to live in are:
2. Rogers Park
6. Bear Valley
9. Rabbit Creek
The question you should ask yourself now is -- what will the next up and coming neighborhood be, and when should I jump on making this my next real estate investment? The reason you should be asking this question is because if you make your next home purchase in an area that you know is up and coming, you can buy cheap while the neighborhood is in development, and receive a huge return on your investment by selling in the future when the place is booming with hungry buyers!
This can be a pretty risky game to play because buying a home in a currently “less than desirable” location might mean that you will be living in a high-risk place. This could mean neglected neighborhoods with some unappealing features, but if you know the tell tale signs of an up and coming neighborhood, living there would be more than worth your investment!
Here are some tips to help you predict where the next up and coming neighborhood might be:
Start Where its HOT
Beginning your search near some of the more popular neighborhoods in the area is a great place to start! The reason for this is because when the neighborhood is on the upward trend, the value in real estate shortly follows. The higher the housing prices climb, the less affordable they become and people start to look for homes in cheaper locations nearby. When people start buying homes right outside the trendy area, it is called a “spillover market.” The more people that move to these communities, the more likely they are to become the next hot neighborhood on the market.
This tip is the foundation to every other building block that goes into finding the next up and coming area. Once you figure out where the most trendy locations are in the city, start looking into these neighboring communities and this will help you discover which locations are on the rise!
Rent and Mortgage Rates are Trending Upward
Once you’ve found a few promising neighborhoods, what you want to look for in these areas are significant and out of the ordinary jumps in the cost of living. The cost of rent always fluctuates a little bit from year to year, but it's those sudden and seemingly unexplained price hikes that are going to be a dead giveaway of a hot neighborhood in the works. If you can buy a home in this neighborhood before things really start to take off, you’ll be able to secure a nice home, at a lower listing price, with a HUGE future return on your investment.
New Things Mean BIG Things
Construction and renovation in an area is a good indicator that the neighborhood is on the rise. If you can clearly see that the town is investing in revamping things like forgotten parks, abandoned buildings, or overgrown waterfronts, this in itself should tell you that they have a pretty good understanding of where that particular neighborhood is headed. Another way to tell if a certain area is gaining traction is by driving through the subdivisions -- are the residents making a point to improve their homes? This means that they are fully invested in their community and want to see it reach its full potential by increasing the overall value of their own properties.
Local Business Prices are on the Rise
One of the greatest resources you will discover in this process are the people that already have a stake in the prospective community! Make a point to go to all of the local businesses and ask the people who work there what prices have looked like in the past few years. If they have seen a steady increase in prices of even the smallest things, like coffee or tea, it would be safe to assume that this is happening with the rest of the neighborhood too.
Young People Set Trends
Where are all of the young people moving? This demographic is typically looking for neighborhoods that have more affordable housing, which is often where you will see a growth in popularity of a particular area. You can ask your local real estate agent where all of the young adults have been moving to and this should give you a pretty good idea of where the next hot neighborhood is going to be!
Get Inside the Mind of Your Local Realtor
Realtors have a better idea than anyone when it comes to the most popular places to live. They have access to neighborhood and market information that nobody else can see, which makes them the perfect resource for finding an up and coming neighborhood. Having a good Realtor in your corner with industry knowledge will make all the difference when it comes to your next real estate investment!
It’s always good to remember that up and coming neighborhoods can take a lot of time to really take off, and their success isn’t always a 100% guarantee either. Even something like road construction or new zoning laws can delay the development of a neighborhood. The most important thing is that you are well informed and feel confident in the decision you are going to make. There are always going to be risks with any large investment, but sometimes taking those risks turn out to be so much better than initially planned!
If you need a resource to get a better idea of all of the neighborhoods in Anchorage, look no further than our blog! We have an extensive list of every neighborhood, as well as the benefits each one provides, and a list of the best attractions in the city! You can find this resource in the “Anchorage Neighborhoods” section of our blog or click the link below!
Precision Home Group is based in Anchorage, and provides real estate services to Southcentral Alaska. We will keep you informed on current trends and market dynamics to help you make the best informed decision. If you are interested in purchasing a home, get in touch with our experienced real estate agents! Our team of experts will negotiate great deals for your home and help you navigate the buying or selling process every step of the way. If you are looking to get into a property that makes sense, or need help analyzing a potential property, reach out at 907-302-1011 or email at firstname.lastname@example.org.