3rd Quarter 2019 Olde Town Market Update

There are a lot of good things happening in Olde Town!  I had the privilege of turning over the role of President of the Olde Town Neighborhood Association to Bob Trescott, who’s been serving as Vice President.  As the father of five and brand new twins, I needed to trim my commitments, but I was encouraged to see lots of new and excited people with fire and energy to move the neighborhood forward!   

As far as real estate goes, many homes are under renovation and we’ve seen some notable sales driving up the prices.  The Renaissance Apartments at Third and Broad were foreclosed on by HUD last week, and likely will be sold as market-rate apartments in the next few months–that will be great for the neighborhood. We’ve definitely seen the prices rising–in 2016 and 2017 the average price per foot was (38) per square foot, and in 2019 so far it is (72) per square foot!  We are definitely seeing Gentrification is coming to the neighborhood. Also Olde Town Apartments is continuing to renovate and lease units.  

 

Recent Notable Sales in Olde Town:

102 Third Duplex, Sold to Jeremy Rueggeberg for $165,000 on 5/16/19

222 Ellis, Sold to Kelsey Kalyta for $122,870. (Not yet Recorded, should be soon)

220 Broad Sold to James Demons for $61,465.  They are already renovating and this will be a great home.  

224 Greene, Sold to Emily Beatty for $139,000 (Not yet Recorded, should be soon)

235 Broad. Sold to Shivaun Delisser for $115,000 (Not yet Recorded, should be soon)

Under Contract: 307 Broad.  This was listed by Atul Sinha, appears to be under contract at almost full price.

Under Contract: 224 Broad.  This duplex is under contract at almost full price, and should be closing in the next two weeks. 

 

Rents are also rising.  We’re estimating a $0.20 PSF increase on average across rental units in Olde Town over the last 2 years.  

 

Here’s links to two properties we have listed in Olde Town:

407 Third Street

260 Reynolds Street 

 

What are you seeing in Olde Town?  Are you a resident or tenant?  How has the neighborhood changed?  What changes have you seen?

 

 

The Four Stages of Gentrification

When talking about Gentrification, I think the four stages that Phillip Clay identified in his 1979 book “Neighborhood Renewal” are a helpful gauge:

 

1)Pioneer–Small group of Risk Oblivious Pioneers.  Artists, Designers, Gays, Lesbians.  These pioneers generally renovate homes that are vacant and in bad shape.  These folks are visionaries.  

2)Expanding Gentrification–Risk Takers– Flipper and remodelers move in, start renovating buildings.  

3)Displacement–Risk Neutral–Values start rising, middle class people start moving into neighborhood.  This is when major changes come to a neighborhood.  

4)Mature Gentrification–Risk Averse–The neighborhood becomes desirable, often with new resources and businesses.  Often the original residents and early gentrifiers are displaced.  

 

How are we seeing this in Olde Town now?  We’re seeing single females purchase homes in the neighborhood.  We’re seeing section 8 apartments turned into market rate housing.  We see young women pushing strollers down Greene Street, rather than old women pushing shopping carts down Greene Street (most of those folks are gone now).  The neighborhood is changing quickly.  

 

Do you live in an urban neighborhood?  Where do you think your neighborhood is in this process?  What signs do you see to confirm that?  

 

Helfpul Links:

https://sites.google.com/site/gg2wpdermotmitchell/gentrification-processes

https://www.cnu.org/publicsquare/2018/04/27/%E2%80%98jacobs-curve%E2%80%99-and-gentrification