ADDRESS

8915 S Keystone Ave Ste C
Indianapolis, IN 46227

PHONE

317-657-8059

Urban Renewal in Indianapolis- How to make gentrification work for you.

You see it everywhere you look; the signs of urban renewal, redevelopment, furbishment, face-lifting, gentrification or whatever name they are putting on it today…Indianapolis is moving inward. This is part of the normal cycles that cities follow, and currently we are in the early stages. Because this is something that has historically happened over and over both here in Indiana and throughout the world, we have insights on how you can benefit from this transition regardless of your current housing situation.

The first group I want to look at is suburban home owners. Given that the cycle is beginning to move urban home prices upward rapidly, it is natural that suburban owners would be concerned that their home values will plummet. While on a long horizon (10-15 years) there will be some decline (more accurately a slowing of growth and plateauing of price in the face of inflation), the situation is not a dire as it would seem.

There are two reasons for this. First we are in a sellers market, so any suburbanite wishing to sell their home at the peak of its value should know that the time to do so is fast arriving. All they have to do is act. The second reason that the situation isn’t dire is that the suburbs will always be a place where people want to raise children. The hipness of the inner city does not lend itself to child rearing and the result of this is there will always be a market (albeit a weaker one in years to come) for suburban homes.

Recommendation: If you are in it for the money and you own a home on the outer edges of Indianapolis, 2016 is the year to sell. If you have a young family, the suburbs are still a great way to go…or stay as the case may be, just know that the upward price trend in your market will peter out in the next few years and then will likely stabilize for the following 15-20 years of this cycle.

The next group I want to address is urban homeowners. You have probably noticed homes in your neighborhood are starting to sell for more than you thought they were worth. You have also noticed quite a bit of that face-lifting I spoke of. It seems everywhere you look there is light construction going on at existing homes and even new construction in lots that have been vacant for decades. Take it as a clue. You have an opportunity to make a nice sum of money on a home that you probably bought very inexpensively. To illustrate that, homes that sold for as little as $25,000 just two years ago in Center Township are now listed in the $130-$300,000 range. Yes, they need money and work poured into them to get there, but there are substantial profits to be made.

You will likely be approached by investors looking to make your home their next quick flip…and they may make a tempting offer. Before you do anything, seek the advice and representation of a quality Realtor. We will help you find the maximum benefit if you are thinking about selling your home.

Recommendation: Whether you are in it for the money or just a desired home location, think long and hard before selling. Your homes potential selling price should move up consistently over the next 10-15 years before reaching its apex. If you are staying at least for the near term, get on board with the neighborhood and make improvements to the home. This will only serve to improve your homes value for that time when you are ready to move on.

The third group I want to address is real estate investors. If you are looking to capitalize on the resurgence of Irvington, Fountain Square, the Old North Side, Cottage Home, Fletcher Place, Woodruff Place and the like; you have probably already missed the boat. But then again, there are a lot of neighborhoods in between these that are showing signs of being the next up and comer. Some of them are the Garfield Park Neighborhood, Saint Claire Place, Pleasant Run and several others. These neighborhoods on the borders may be the next fast up and coming neighborhoods and have yet to see the related price growth. Savvy investors will look into these areas and find the bargains that can be rehabbed as urbanization continues.

Recommendation: Shop the fringes of the “hot” neighborhoods with a budget for a proper rehab on the house you invest in. The right buy with good work done on it will result in a profitable sale.

I would like to go on and address buyers of all types, but frankly that would have to be two or three more articles. Suffice it to say at this point that buyers should be just as aware of these cycles as everyone else…and the quality Realtor I spoke of earlier (being me, of course) is well equipped to help you out.

So if you would like to benefit from my knowledge of the Indianapolis market in your next home purchase or home sale, call me at 317-657-8059 to set an appointment, or shoot me an email at robb@yourrealtylink.com . You can also use my handy web form.

* indicates required field
Share this:

Follow me here!