We all want to know what the next “hot” neighborhood is going to be. Seriously, If I had a time machine, I would go back to 2012 and buy all the 2 bed/1 bath houses in White Center and ALL the townhouses in Ballard. But we don’t have time machines, so the best we can do now is to try and spot neighborhoods that are currently undervalued and are likely to appreciate at a rate that outpaces the rest of Seattle.
And the best way to do that is to follow the money.
The Office of Economic Development has announced $1.3 million dollar investment in neighborhood business districts in 2019. These grants will specifically focus on creating and maintaining environments where Seattle small business can start and grow.
But how does this relate to home prices?
90% of home owners place living near “shops, coffee, groceries or dining” in their top 3 priorities when buying a home. Neighborhoods with thriving business tend to have less crime, more community involvement and higher property values. Historically, neighborhoods that are recipients of large amounts of federal or state funding tend to greatly outpace the rest of the area when it comes to increases in home, land and business value. So when I say follow the money, I am implying that where government chooses to put its resources, is often a neighborhood that is poised for “comeback”.
The Neighborhoods Receiving the Most Funding:
- Chinatown/International District = $220,000
- Central District = $215,000
- MLK/Othello – $140,000
- Lake City = $123,000
- Rainier Beach = $110,000
- Capitol Hill = $90,000
And just for fun, let’s note the current median sales price for each neighborhood:
- Chinatown/International District = $585,000 (condos)
- Central District = $780,000 (houses)
- MLK/Othello – $548,250 (houses)
- Lake City = $418,000 (houses)
- Rainier Beach = $485,000 (houses)
- Capitol Hill = $405,000 (condos)
My prediction is that in 2024, these 6 neighborhoods will have outpaced price increases of almost all other neighborhoods.