Where’s The Next Hot Minneapolis Duplex Neighborhood?

If you’re looking to invest in a duplex in an up-and-coming area of Minneapolis or St Paul, how do you know where to look?

Many signs appear in a changing neighborhood before the public realizes something’s afoot.  These include:

• Follow the artists. Things are changing if you see signs the artistic set is setting up shop in a neighborhood. That community often seeks out affordable spaces with interesting housing options they can improve upon and make their own.
• Follow the coffee shops. The one-of-a-kind coffee shops tend to spring up first to serve the community. And if there’s a Starbucks scheduled to move in, you know they think the area is hot too.
• Vintage shops. While this is a personal observation and not scientific, I’ve noticed unique and often, vintage shops seem to foretell a change as well. These are not antique shops. Think vintage clothing and funky furniture.
• Days on Market. If properties listed for sale suddenly seem to be spending less time on the market before selling than other parts of the city, it may be a sign things are changing.
• Price Appreciation. If there is a sudden increase of duplex and home values in an specific area, this may be a sign something’s changing.
• Rent increases. If there are fewer vacancies and rents are becoming less affordable, it may be a sign things are changing.
• A big box store, Starbucks, or fast food has plans to build or move in. These companies often have commercial Realtors on staff  whose job is to identify neighborhoods with changing demographics and employment opportunities, then acquire a site to put a store there.
• Ask the city. If you talk to a city’s planning department, they will not only share with you where projects are about to be built. If you’re in an outlying suburb, you may also want to ask about their current and future plans to extend existing water and sewer lines.
• Ask a Realtor. While we’re also studying many of the afore-mentioned signs, sometimes we hear things anecdotally from our clients or our peers.

If you’re looking for an opportunity in an emerging market, or any other place, give me a call.