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The 10 Hottest Neighborhoods in 2013
24/7 Wall St. / January 2, 2013
Urban experts have a sure-fire way of telling whether a neighborhood has turned the corner from dowdy to prosperous — it’s called the Starbucks test.
“You’re probably well past up-and-coming once a Starbucks moves in,” says Peter Tatian, senior research associate in the Urban Institute, a Washington think tank. Yoga studios and even dog parks are other anecdotal indicators that affluent homeowners and renters have begun to gentrify a neighborhood, adds Tatian.
Of course, Tatian, along with Realtors, homebuyers and homesellers look to another objective test of market interest in a neighborhood. If housing prices shoot up sharply on a year-over-year basis, the odds are that supply is constrained yet demand is high. The neighborhood has turned a corner.
The trick is to buy into a neighborhood while it is on its way up and before it has fully turned a corner. 24/7 Wall St. asked Trulia, a leading supplier of home listings, to provide us with a list of the nation’s 10 up-and-coming urban neighborhoods as measured by yearly price changes in cities. Home prices in most of these area are still considerably lower than other already established neighborhoods in their cities.