San Diego is a diverse city with all sorts of nooks and crannies that suit a variety of personalities and lifestyles; however, one type of community that has grabbed buyers’ attention lately is one that is up and coming. The allure of an up and coming neighborhood capitalizes on equity growth, community development and participation. Meaning, buyers are considering these neighborhoods because they want to play where they live and hope to make a little money of their investment at the same time. But an up and coming neighborhood actually falls on a spectrum of upward trending urban neighborhoods, each of which are expected to see equity growth in the coming years. It is up to each prospective home buyer to fully consider the pros and cons of purchasing real estate at any end of this spectrum:
- The Just Getting Up: Neighborhoods like east Logan Heights, Stockton, Fairmount Park and the surrounding areas all are primed to be the next up and coming. In other words these neighborhoods are crawling up due to the surrounding property values increasing, and investors rehabbing properties that have long been held within the community’s families. Crime rates, poverty, and an intermittent city support are to be expected. However, their close proximity to downtown, character of the architecture, and need for more family homes near the urban community position these communities as potential growth centers for the next 3-10 years. Inventory is growing for buyers looking in these areas but attention to the quality of the flips is encouraged as well as frequent visits at different times of the day to gauge your level of comfort. Detached homes can be found in the $300,000-$500,000 range.
- The Up & Coming: Neighborhoods like Barrio Logan, City Heights, Rolando, and Grant Hill are all good examples. They all have grit. They all have somewhat elevated crime rates. The sidewalks typically have a good amount of foot traffic and sirens are just part of the lifestyle as they are in most urban settings. But they all have location, a growing community of people who want to see it thrive, and increasing home values and local business attention. Schools in up and coming neighborhoods are often not rated as high as in established neighborhoods, so if that matters to you, ratings and school visits are advised. These neighborhoods also encourage you to be involved in its development. Inventory is slowly growing for buyers looking in these areas but attention to the quality of the flips is encouraged as well as frequent visits at different times of the day to gauge your level of comfort. Home prices typically begin in the $400,000’s and rising.
- The Arriving: Sherman Heights, Normal Heights, sections of City Heights are good examples of San Diego neighborhoods where the rehabilitated homes outweigh the shabby and in disrepair. Crime rates may be more elevated than other areas of San Diego, but the support is there. Businesses are attracted to these neighborhoods. Inventory is slowly growing for buyers looking in these areas but attention to the quality of the flips is encouraged as well as frequent visits at different times of the day to gauge your level of comfort. Home prices begin in the $400,000’s, however Sherman Heights have begun to see prices climb to mid-600’s when looking at historically significant homes.
- The Arrived: The most often confused category for “up and coming,” areas like North Park, Adams Avenue (part of Normal Heights), and Golden Hill are more or less thriving. Yes, they aren’t as established as South Park or Kensington but the value is there, the businesses are there, and the attraction is there. Walkability is high due to the influx of breweries, restaurants, and shops. These neighborhoods are setting the pace for the rest of the urban growth. There’s still grit but the street lights are always on and patrolled. Families as much as individuals are flocking to live here. The competition is high for buyers looking in these areas. The detached home prices in these neighborhoods typically start over $500k.
Full Disclosure: I live in the Logan Heights area. I find it completely satisfying and exciting to be part of neighborhood’s growth and betterment but it isn’t for everyone. If you are considering purchasing in a community in the process of re-establishing itself, let’s set up a coffee (tea, beer, wine, etc. whichever you desire) meeting and discuss your comfort level with purchasing in a progressive community. I believe in these neighborhoods and want them to grow healthily and affordably for the years to come.
*This information is opinion based on historical and observed conditions in these neighborhoods; and is not to be considered fact. Prospective home owners looking in these neighborhoods as with any neighborhood, have a duty to inspect, research, and satisfy themselves with the condition and location of the houses they intend to purchase.