As home prices continue to soar, both here in New York and across the U.S., it can sometimes look like all the good deals are gone. After all, successfully investing in real estate—no matter where you are—means you gotta get in while the gettin’ is good. By the time an area is on the economic rebound, and particularly if it’s saturated with new development, the opportunity for buying and renovating a property cheaply might have flown the coop. This may seem especially true here where real estate is already at a premium—even in the once-blighted neighborhoods, people saved to move out of. Despite what it may seem, however, there are still a few up-and-coming NYC neighborhoods to keep an eye on if you want to strengthen your real estate investment portfolio.
UP AND COMING NYC NEIGHBORHOODS TO WATCH
Since the housing crash, each of New York’s boroughs, and many of the neighborhoods within them, have recovered to varying degrees and rates. But some are really taking off and turning around. Investing in Brooklyn real estate, for example, has become such a hot commodity that the resulting surge in population put the borough back in the green.
Not every neighborhood that’s gotten a reboot, however, is going to produce the kind of returns that justify investing there. In many neighborhoods, particularly those in Manhattan, overdevelopment and intense competition have outpaced any semblance of affordability. Or, like Greenwich Village and SoHo, development has slowed to such a clip that lowered inventory has led to higher costs and fewer buyers. That said, we can still identify areas where home prices are on the rise yet low enough to make for good investments. Here are some of the neighborhood highlights from our research.
Once associated with high crime rates and urban blight, many Bronx neighborhoods are finally getting the attention and revitalization they need. As a result, the median price range for the Highbridge/Morris Heights area one-to-three—family homes have been on the rise in recent years. But, it’s still relatively cheap to buy in this up-and-coming NYC neighborhood and people are noticing. You will want to cash in on this revived interest while there are still time and inventory.
Two other Bronx neighborhoods, Fieldston and Riverdale are seeing sales dramatically outpace inventory growth, and prices for homes rose yet again. Though this part of town is already considered one of the more affluent areas of the borough, its tipping point—the time at which the cost of renting surpasses that of buying—is only a few years. Most areas of the Bronx, in fact, have less than a two-year tipping point. Investing here, then, could tilt potential profits in your favor as more New York residents come to see homeownership as better than renting.
This vibrant and diverse neighborhood in central Queens has been one of the borough’s top performers. With easy access to Manhattan and lower property taxes than nearby New York City suburbs, several neighborhoods in Queens are seeing an increased interest in homeownership. And, home prices are rising accordingly. Of course, competition here is strong, but not yet unbeatable. So the time to invest might be sooner, rather than later.
Closer to the suburbs of Long Island, Queens Village is considered an ideal location for first-home buyers. It is also highly diverse, with good schools and transportation and neat, single-family houses dating back to the 1920s and 1930s. It was also a top performer last year in terms of median price increases. And because the tipping point for most of the borough is less than three years, this neighborhood’s popularity—and prices—will likely climb higher.
Yes, the cost of investing in New York City is expensive compared to much of the country. But, the benefit of doing so has the potential to yield good returns if you know where to spend your time on buying, renovating, and selling houses. These up-and-coming NYC neighborhoods look very promising for the coming year. Really growing your real estate investment portfolio, however, takes more than a promise.
INVESTMENT OPPORTUNITIES FOR ALL TIME
In my experience, finding up-and-coming NYC neighborhoods poised for growth at any time starts with finding marketing tools for investors that are tried and true—the kinds of tools that bring home seller leads to you. As an independently owned and operated HomeVestors® franchisee, that’s exactly what I have. So, though I like to keep up on the latest New York neighborhood real estate news, my investment opportunities don’t depend on it. Rather, I bank on the nationally recognized “We Buy Ugly Houses®” brand and the print, radio, and television ad campaigns that have made HomeVestors® a household name. Now, some of my motivated sellers find me, instead of the other way around, which keeps my investing business going strong year after year.
When it’s time to invite promising investment opportunities to come your way, let HomeVestors® be there to get you started. Contact the “We Buy Ugly Houses®” team today.
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