Whether by choice or not, the average person’s housing requirements have changed in the last two years: Internal migration toward the suburbs — fueled by a need for more space, as well as remote work adjustments — has resulted in a change in the socio-economical makeup of some residential communities compared to early 2020.
So, where does that leave homebuyers researching potential neighborhoods in today’s housing landscape? Well, for individuals whose plans were postponed due to the pandemic, their original neighborhood of choice might look slightly different nowadays.
Of course, there are plenty of things to consider when buying a house. So, to make house-hunting easier in today’s rapidly changing market, Point2 put together a checklist on how to research a neighborhood, as well as useful tips from industry experts on how to choose a neighborhood before settling down.
1. Evaluate Current Needs
What you require from a home now might be different than what you were looking for a few years ago. For instance, with employment becoming increasingly location-independent, accessibility and shorter commute times are less important now than space and quiet surroundings to conduct your work from home when necessary. Additionally, the number of families in the area might have dwindled — replaced by young professionals fleeing overpriced hubs while working remotely. Similarly, the median age within the community might have decreased or increased. In that case, the neighbors you might have had two years ago may not be the same as those you would have now.
For these reasons, it’s essential to consider what matters to you and your lifestyle now: Is it accessibility? Is it reliable neighbors in a tight-knit community? Perhaps it’s the local business scene that you could frequent. Whatever it is, make sure that the neighborhood you’re about to call home has it.
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2. Check Out Latest Local Real Estate Activity
Looking at recent real estate activity is a surefire way to determine property value in the neighborhood of your choice. Plus, it can also offer a pretty good picture of the neighborhood comings and goings, as well as the level of cohesion.
As an example, too many listings could be a warning sign when buying a home: It could signal that the neighborhood is in decline. Specifically, a lot of homes for sale could indicate a possible drop in property value, as well as a lack of stability within the community or other negative factors that might alienate its residents. At the same time, limited listings might signal that the neighborhood has plenty of long-term residents.
With that in mind, check historical data on how housing prices in the area have fluctuated throughout the years. This can also help you determine whether the house itself would be a good investment.
3. Explore Online Resources
You can’t overlook what the internet has to offer when exploring the places, schools and job options that are right for you. So, after you finish looking for an aerial view of the neighborhood on Google Maps and checking public Facebook groups for the latest community buzz, make sure to delve into neighborhood-related online resources, as well.
As a future resident, keeping up with neighborhood statistics can also allow you to get an objective and unbiased picture of the neighborhood makeup. Specifically, trusted online resources — such as Walk Score®, Niche or CrimeMapping — allow for data breakdowns and even comparisons to other neighborhoods on a wide range of important stats, including accessibility, safety, employment, cost of living, diversity, family-related data, health and fitness options, nightlife, and so much more — even the weather! Most important, you can also access real reviews and survey answers from actual people who live or used to live in the neighborhood you’re considering moving to.
Other online resources that might come in handy are CityData, CityProtect, NeighborhoodScout, Nextdoor and AreaVibes, among others.
4. Ask Your Real Estate Agent
Online research is a key resource in choosing a neighborhood, but nothing beats talking to a real person. Granted, talking to existing residents and taking a few strolls around the block is a good idea, but chances are that the person who knows best about what has transpired lately in the neighborhood is your real estate agent.
Therefore, ask questions that are relevant to you and your lifestyle and look for honest answers from your real estate agent. Specifically, focus on what caters to you and steer clear of biased opinions. Real estate agents can also help you weigh the pros and cons, as well as get a sense of what living in the area might look like.
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5. Get Information on the School District
Whether you have or plan on having children or not, don’t forget to find out which school district your future neighborhood is in. This is important for a number of reasons.
First, even for residents who don’t plan on having children, a good school district is correlated with a good neighborhood overall. It implies walkability, safety and resident stability, which increase home values.
Additionally, parents and future parents might also be curious to research how local schools have adapted to the changes during the pandemic. This allows residents with children to see how adaptable the schools in the area are, as well as whether they would go the extra mile in committing to the students in the face of adversity.
6. Take Expert Advice
Finally, when calculating your best housing options, nothing beats an educated opinion. Below, experts in urban and regional planning, as well as public administration, offer their input to help guide your decisions.
Image: umb.edu Kenneth Reardon |
What are the main factors to research before moving to a new neighborhood in 2022?
The health and stability of the local housing market for the type of housing you are seeking (rental/ownership). Is there a low vacancy rate suggesting the overall health of the market? Do recent rental costs and home sales suggest strong demand (offering the possibility of building equity during the time one expects to live in the area)? Are there any private developments or public infrastructure projects planned for the near future that might affect your ability to use and enjoy your property? (i.e., a privately proposed mega project that is moving through the public permitting process or a proposed improvement in public infrastructure that might, in the short-run, undermine the quality of life in the community and negatively affect the purchase price. Alternatively, such projects might enhance the value and enjoyment of the property). Three other important factors in evaluating a neighborhood include: quality of the public schools, safety of the neighborhood, and availability of high-quality neighborhood-oriented retail services. Have homebuyers’ needs changed in the past two years? For example, in regards to location and community amenities. If homebuyers are employed in business and/or sectors that have shifted a significant portion of their activity to remote work, commute considerations might be less important, while local amenities might take on new importance. The recent pandemic revealed significant differences in the health and wellness of local communities. These glaring differences in the impact of the pandemic are shaped by what public health scholars call the social determinants of health. Choosing a geography where infection rates were lower, hospitalizations less frequent, and survival rates higher may become a new factor for homebuyers to consider. What are some common deterrents for potential residents to settling down in a certain neighborhood? If a potential homebuyer drives into a community and its local commercial center looks like it is struggling, it might lead them to be a bit more cautious about purchasing. If the neighborhood’s public safety record is not good, this might also be off-putting. Also, if its local middle and high schools are underperforming on state tests, this would be a concern. Finally, depending upon the location, there would be environmental impacts of climate change. Is the property in a location near the ocean or a river that has experienced recent flooding? Is the property in a community that has few trees? This would make local housing vulnerable to extreme heat, which is becoming more and more of a problem. |
Image: John Schoonover William J. Cohen |
What are the main factors to research before moving to a new neighborhood in 2022? I would start by visiting the local planning office and looking at the zoning maps. One should have two concerns in this beginning research: first, what is my property and the surrounding property zoned; second, what uses are permitted either by right or with special conditions that might cause concern. For example, is a non-residential use allowed if it meets certain conditions in my residential neighborhood? If such use were to become a reality, would it be acceptable to me and my neighbors? The next item I would research is any re-zoning proposals or applications in my immediate neighborhood. If they exist, what new land uses would this introduce to my neighborhood?Finally, there are two elements that one should be aware of (information should be available from an appropriate public agency):
In the final analysis, use common sense to research any other aspect or element that might have an immediate or future impact on the neighborhood. For example, if there is rapid turnover, what can the reason be? A local real estate company might have a reply. I would also be guided by what officials in the local planning office might offer to acquaint you with any future changes or projections that might affect the neighborhood environment. |
Image: Kenneth Chilton Kenneth Chilton |
What are the main factors to research before moving to a new neighborhood in 2022?
I think traditional factors such as school quality, location, neighborhood amenities, lot size, and crime still matter. Of course, the value a buyer places on those amenities varies by age and life stage. However, in a post-COVID world, I think additional factors should be considered. For example, is the community well served by broadband? Can the home support one or two individual offices? A new variable to consider is the concentration of investor-owned single-family residences. In many growing markets, Wall Street investors own large portfolios of single-family homes. Savvy buyers might want to explore property records data from their local appraiser’s office to determine how many homes are owned by LLCs. This could help a buyer identify the mix of owners within the neighborhood they are researching. Finally, given the growth in “once in a 1,000-year” weather events (floods), buyers should be aware of flood plains and areas that have been hard hit in previous floods. Have homebuyers’ needs changed in the past two years? For example, in regards to location and community amenities. The short answer is “yes.” More Americans work from home now than in the past. Thus, buyers often seek suburban homes with more space for offices. Of course, those communities need a full range of amenities ranging from local parks to healthcare options. In the US, household structures have changed. According to the Census Bureau: “There were 37 million one-person households in 2021, or 28% of all U.S. households. In 1960, single-person households represented only 13% of all households” (2021 Current Population Survey’s Annual Social and Economic Supplement). In addition, the average home built in the 1960s ranged between 1,000 and 1,200 square feet. The growth in one-person households has coincided with demands for larger houses. Given the uncertainty in energy markets and costs, buyers should consider square footage needs to reduce costs associated with heating and cooling thousands of square feet. Also, we are an aging population. Empty nester homebuyers should consider access to healthcare and elder services in communities. What are some common deterrents for potential residents to settling down in a certain neighborhood? Institutional barriers continue to deter some buyers from more upscale communities. Large lot zoning and minimum square footage requirements increase the price of housing and exclude some potential buyers. In a technological world, a new concern is the role of algorithms in housing discrimination. Certain groups may be targeted or not targeted with advertisements for housing or neighborhoods based on affinities. If this occurs, it could be a deterrent to certain groups who are not actively targeted based on race or ethnicity. |