How to Find Comparable Neighborhoods and Better Value in Your City
It's possible to find a neighborhood that checks off your wish list without breaking your budget.
When you find yourself unable to afford your dream neighborhood, consider the qualities that make it ideal for you and you'll likely find a similar alternative at a more affordable price.(Getty Images)
Anyone with a passion for real estate has likely suffered from neighborhood envy at some point. Whether you were drawn to well-manicured, tree-lined streets or a buzzy corridor of great boutiques and restaurants, your deep desire to call that particular enclave home might have been met with a bit of sticker shock. If your dream neighborhood is everyone's dream neighborhood, price tags will rise to meet the fierce demand.
All is not lost, however. With some diligent research, and the help of a qualified real estate professional, you can likely find a comparable neighborhood that ticks most of your wish list boxes at a lower price point. To help find similar communities, you must first drill down to what you love about your ideal, dream neighborhood. First, think about what makes up a neighborhood in the first place.
Here's what you should consider when evaluating a neighborhood's features:
- Architectural styles and housing
- Terrain and green space
- Local services
Architectural Styles and Housing
A leading component of a neighborhood's character is the architectural styles and housing stock found within. Whether strictly uniform or wildly eclectic, houses make up the aesthetic of an area. And while you may gravitate toward the visual appeal of one type of home, architecture is also often closely tied to a neighborhood's rich history.
Think of the classic brownstones of New York City, the mid-century masterpieces of Los Angeles or the Art Deco buildings of Miami Beach. Each architectural style tells a story about an area's iconic heyday and the current residents' enduring interest in retaining that history. In addition to architecture, the composition of housing stock has a huge impact on a neighborhood's overall ambiance. Blocks and blocks of single-family ranch homes will create a different vibe than a mix of low-rise townhouses and high-rise apartment buildings.
Terrain and Green Space
Whether you dream of hilltop views or a flat, walkable neighborhood, terrain has a lot to do with a neighborhood's overall character. In Los Angeles, for example, you may compare Laurel Canyon with West Hollywood. These two neighborhoods are next door to one another, yet they each have a completely different atmosphere, primarily due to the nature of canyon versus basically flat terrain. In San Francisco, terrain even influences the city's notorious microclimates – differences in elevation and proximity to the water cause weather patterns to differ from neighborhood to neighborhood.
Green space, including municipal parks, undeveloped land and large lots have a huge impact on atmosphere as well. For the best example of that, one only needs to think of the granddaddy of them all: Central Park, which is both a regular spot for local residents to hang out and a tourist destination.
But a large park isn't always required to make green space valuable. Mature sidewalk trees and parkways can also break up an area and make it come to life. The Hudson River Greenway along the Hudson River in Manhattan, for example, has added enormous quality of life value to what used to be a true concrete jungle.
Local services, or a lack thereof, are prime drivers of a neighborhood's energy and activity level. If your dream neighborhood is walkable or car-free, you'll probably love having an array of shops, restaurants and nightlife within blocks of your front door. If peace and serenity are your neighborhood goals, however, you'll want to choose an area that is zoned exclusively for residential use. When assessing the impact local services might have on your quality of life, think not only about the business locations themselves, but also consider vehicle and pedestrian traffic patterns and local parking capacity.
Assessing transportation in and out of your neighborhood is paramount. Make sure you take into consideration your commute to work and school drop-offs, if applicable, plus access to the stores and services you visit most often. Think about if you wish to move about by car, bike, on foot or via public transportation, and closely examine the options for each. What are rush hour traffic or transit conditions like? Your dream neighborhood won't stay dreamy for long if it comes with an awful trip to work.
Now that you've spent some time evaluating which factors make up your coveted dream neighborhood, it's time to narrow down which of those best support your specific lifestyle and needs. Perhaps you adore your dream neighborhood's American Craftsman houses, but wish it had better access to transportation alternatives. Or maybe you'll decide your ideal neighborhood's lively nightlife scene is actually less than ideal for family life.
By combining your wish list with your real life, you'll be in a position to go in search of comparable neighborhoods with great price tags. Take a look at some comparable neighborhood swaps in the nation's top real estate markets:
Brooklyn, New York: Williamsburg to Downtown Brooklyn
Rapidly evolving and vibrant, Downtown Brooklyn is drawing a lot of former Williamsburg residents with its new-construction condos, world-class entertainment venues and perhaps most importantly, its abundant transportation. Closing prices in Downtown Brooklyn average about $50,000 lower than those in Williamsburg.
Los Angeles, California: Silver Lake to Highland Park
Set among winding streets with an eclectic mix of architectural styles, boutiques and an undeniable artsy ambiance, Silver Lake has been the hipster destination of Los Angeles for some time now. Not surprisingly, its home prices match its popular reputation. On the other side of the Interstate 5 freeway, however, Highland Park stands ready to take the hipster crown with its dining scene and vibrant arts community. While the area's home prices have been skyrocketing as of late, Highland Park home values still hover about $300,000 below those in Silver Lake.
Brooklyn, New York: Cobble Hill to Clinton Hill
For New Yorkers who covet the breathtaking brownstones and family-friendly vibe of Cobble Hill, Clinton Hill is a solid alternative. Residents of Clinton Hill rave about the close-knit community and great parks, and prices for townhouses in the area average up to $1 million less than in pricier Cobble Hill.
San Francisco, California: Cow Hollow to Glen Park
Cow Hollow is among San Francisco's "it" neighborhoods thanks to its dining, nightlife and proximity to the waterfront and the Presidio national park at the southern end of the Golden Gate Bridge. Less than four miles south, San Franciscans with an eye for value are checking out Glen Park. This enclave offers a small commercial district, plenty of charm and a convenient location nestled between Glen Canyon Park and the Interstate Interstate 280 Freeway. The Glen Park Bay Area Rapid Transit station keeps the neighborhood's location convenient, and home prices run about $500,000 less than in Cow Hollow.
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A dream neighborhood is highly personal, but there are plenty of them to be found if you know where to look. Even if you have to make a few minor concessions for the sake of budget, you can often make up for those small sacrifices in the increased value your home might experience as the neighborhood develops.