Ever wonder how realtors and developers can determine which neighborhood is about to get gentrified?
Well, according to The New York Times, it's basically as simple as checking out the new stores, restaurants, and supermarkets in the area... sort of.
Essentially, you want to look for neighborhoods near public transportation with real estate values that are on the rise, but still affordable in comparison to the surrounding areas.
Though gentrification may mean certain positives (better food, beers, art, theater, etc.) it could mean demise for the current residents of the area.
These residents could eventually see a raise in rents and taxes, though homeowners can expect a rise in residential values if they intend to ever sell.
Looking to find a new up and coming neighborhood before the prices skyrocket? Check out these four neighborhoods that The New York Times believes are the future Bushwicks.
1. Sunset Park West, Brooklyn
Sunset Park has long been home to the Chinatown and Latino communities of Brooklyn, but could soon be seeing an onset of millennials and Park Slope/Fort Greene residents who have been priced out of their communities, but still want to remain in Brooklyn.
The charming archetecture, which The New York Times believes is a sign of future gentrification, is attracting plenty of newcomers, particularly around Hillside Park.
Apart from the attraction of the Northeastern portion of the neighborhood, redevelopment along the water is partially responsible for drawing interest, particularly to those with backrounds in technology, media, art, music, and foodies.
Just look at how far Industry City has come, with the investment of $125 million by a partnership of owners in the attempts garner interest in a $1 billion revamp to the neighborhood.
Buyers in the area can find two-family homes for anywhere between $700,000 to $1.3 million, though the prices are increasing due to demand.
As far as rent? A ground-floor unit of a two-family home can for around $1,900 a month. Consider us intrigued.
2. The Rockaways, Queens
No, this beachside area is no longer solely for surfers and beach bums. As more and more people recognize the easy commute (less than an hour by bus to Lower Manhattan), beautiful beaches, and low costs, this area is primed to grow in popularity.
For $200,000, you can purchase a one bedroom that may have bay views, though the median price for the fourth quarter was $430,000, as reported by The New York Times.
Furthermore, new developments have increased the interest of people from all over the five boroughs looking for more space for their money.
Katie Long, a resident of the Rockaways, moved from a Park Slope rental to a three-bedroom, two-bath condo one block from the ocean for a mere $480,000. "We are living like kings," she told The New York Times.
3. Flatbush, Brooklyn
Want to buy a house in Brooklyn? Turns out, you don't have to be a multimillionaire, you just have to know where to look.
Check out Flatbush, an area that The New York Times believes is on the up and up, though still affordable with a median sales price of $330,000.
This diverse area is a great spot for someone who really loves the culture of Brooklyn, but not the prices.
Sonya Cheng, a recent homeowner in Flatbush, describes the area to The New York Times as one with "[tree-lined] streets on all the surrounding blocks. The newly renovated Kings Theater is nearby, and Target a five-minute walk. Oh, and delicious roti everywhere!"
The homes in Flatbush run the gamut, with prices as low as $125,000 for a studio near Brooklyn College to a $999,999 detached townhouse right on the border of Ditmas.
4. East Harlem
Manhattan's real estate market is brutal. However, there are areas of Manhattan that are still affordable, and could potentially become the next big Bushwick on the scene.
East Harlem is easily accessible by public transportation and has a median sales price of $499,000. That's a far cry from the median $749,000 in Central Harlem and $900,500 in Yorkville.
Furthermore, new developments are popping up offering luxury living for a much better price than the rest of Manhattan.
Gary Pai told The New York Times that he "was so interested in the idea of living in a changing neighborhood." Pai recently paid $690,000 for a one-bedroom condo with an open kitchen and private roof deck on the 6 subway line.
Apart from recent developments, restaurants and shops, particularly in El Barrio, aka Spanish Harlem, offer incredibly delicious food at a reasonable price.
However, with a Whole Foods in the works at 100 West 125th, and more retail brands, bear halls, coffee shops, and gastropubs in the works, gentrification could be rapid and hit this area hard.
"Almost every corner on that intersection is being developed or will be hitting the market in the next couple of years," said Adam Heller of the Heller Organization, a residential brokerage, retail, and investment firm.
Yes, these areas are affordable now, but The New York Times notes that they will most likely rapidly change, though it seems as if residents who can no longer afford to live in Brooklyn and Queens are the ones reaping the benefits, rather than out of state transplants.
We'll have to wait and see whether these predictions actually result in a completely different neighborhood than the current ones.[via The New York Times] [Feature Image Courtesy The New York Times]