Every serious house hunter is aware that the St. Louis neighborhood surrounding any house has a significant effect on its ultimate value. It follows that the future of a neighborhood will have a measurable impact the future value of the properties in it.
Part of the reason not much emphasis is given to this factor is the difficulty of gauging a neighborhood’s future prospects. That’s especially true for homebuyers who are new to the area. Yet there are ways to scrutinize neighborhood characteristics for indications that augur well…or which point to a future which might not be headed in the right direction. Here are four such factors:
- Incomes. Strong average household incomes are indicative of more than just the current bankrolls of the neighbors. Higher incomes are good bellwethers for households likely to maintain attractive landscaping—and to make future renovations to their properties.
- Home price histories. For properties currently listed in the same neighborhood, noting their online price histories can reveal more than just an upward trajectory—most homes in St. Louis (indeed, almost everywhere in Missouri) are now showing growth. The relative size of those price rises can reveal the most up-and-coming neighborhoods.
- Schools. Good schools attract the kind of family-oriented homeowners who tend to create attractive neighborhoods. There are two corollaries, too: first, the best schools are more likely to remain top-rated. Second, schools that are known to be rapidly improving are more likely to reward the properties in their area with better than average value appreciation.
- Rental ratio. Since homeowners take more pride in their property’s appearance than do tenants, a higher owned-to-rented percentage usually corresponds with a neighborhood’s likelihood of better-than-average value appreciation.
A number of other factors can impact a neighborhood’s future: safety, proximity to employment opportunities, walkability, or even evidence of remodeling activity and new construction—they are all indicators. Another reliable way to evaluate St. Louis neighborhoods is to team with a knowledgeable veteran St. Louis Realtor®—one who knows our area top-to-bottom. In other words: give me a call! 636.329.4100