Strong income in SW but solid home value YoY increase in the loop. Loop sounds like a fun place to develop. Unsure about potential rental rates with the price range varying a bit there.
Wondering if I'm thinking about this incorrectly. None of the three charts talked about rental data, but based on the high incomes in SW, high base home values (even if some are lowering YoY), and your description, that SW has a relatively low volume of existing apartments/for-rent units. In other words, most people that live there are probably wealthy, have nice amenities, and live in a single-family home.
Thus, I chose SW on the basis of an expected rent gap and an expected desire for moderate-income renters to move in. Homes in the area are very pricey, but someone who couldn't afford an 800k home might be up for renting a nice apartment in the nice neighborhood to get access to those schools, lakes, parks, and shops. They don't appear in the income data today because they can't get into the neighborhood.
Of course, the charts in this post also didn't include anything about zoning, so would definitely need to understand if more attainable multi-family builds (whether for-rent larger properties, or for-sale smaller [fourplex]) are even possible there.
My only thought/concern would be getting people in the neighborhood on board with the plan, and I would likely build something on the luxury side, with a pretty set marketing approach.
"Experience the lifestyle" blah blah. If it's lux enough it won't be considered a bane to the neighborhood, but it's also a tighter rope to walk due to build costs and you have to be damn sure you'll get the right rent prices when it's time to land tenants.
Uhm. Did you just Master Class my Substack? THESE are the kind of deep-dive insights I need, Sean. Keep them coming!
That’s the hope!! Keep reading and we’ll do our best to blow your mind :)
Do you see “Harrison” and “Near North” as areas with high upside because of their proximity to North Loop?
Or are the infrastructure barriers going to limit the sprawl into these nearby neighborhoods and keep growth contained to the North Loop?
Yes and no. They’ll continue to grow, but have some underlying soil issues that will slow the pace a bit. But I definitely think they’ll grow. Do you?
Didn’t know about the soil issues, good call.
I think they will lag NL a bit but I think it’s an attractive area being close to NL.
I’m slightly concerned about crime in nearby NMPLS areas that could limit attractiveness of living in Harri/NearN
Strong income in SW but solid home value YoY increase in the loop. Loop sounds like a fun place to develop. Unsure about potential rental rates with the price range varying a bit there.
SW property worth almost 2x etc.
The North Loop is a great spot!
Wondering if I'm thinking about this incorrectly. None of the three charts talked about rental data, but based on the high incomes in SW, high base home values (even if some are lowering YoY), and your description, that SW has a relatively low volume of existing apartments/for-rent units. In other words, most people that live there are probably wealthy, have nice amenities, and live in a single-family home.
Thus, I chose SW on the basis of an expected rent gap and an expected desire for moderate-income renters to move in. Homes in the area are very pricey, but someone who couldn't afford an 800k home might be up for renting a nice apartment in the nice neighborhood to get access to those schools, lakes, parks, and shops. They don't appear in the income data today because they can't get into the neighborhood.
Of course, the charts in this post also didn't include anything about zoning, so would definitely need to understand if more attainable multi-family builds (whether for-rent larger properties, or for-sale smaller [fourplex]) are even possible there.
My only thought/concern would be getting people in the neighborhood on board with the plan, and I would likely build something on the luxury side, with a pretty set marketing approach.
"Experience the lifestyle" blah blah. If it's lux enough it won't be considered a bane to the neighborhood, but it's also a tighter rope to walk due to build costs and you have to be damn sure you'll get the right rent prices when it's time to land tenants.