When you’re starting your real estate venture, it’s important to consider not only location for where your purchased home or property will be, but who you think would consider buying or renting out your home. If you’re looking to spruce things up and keep things modern, you may want to reconsider how to target towards the younger generation.
The pro’s of high density development areas
Odd’s are that if you think of a high density developed area, the first location that will come to mind is an area in Detroit such as Midtown. However, these high density development areas are not just popping up in major cities. All around Metro Detroit companies are building new roots and finding ways to get closer to their customers.
Millennials are starting to move out of areas such as New York City and San Francisco, in search of more affordable areas. However, they’re not willing to give up the luxury of walkability and easy access to businesses. These are the two things you should look for when searching for a high density development area.
Walkability will increase your market value
It turns out that the higher your walkability score is, the larger value your home will be. Recent research has shown that walkability near your property can increase value on your home up to $3,000. Additionally, the correlation between walkability in your area and a busy business development is also a factor to consider. Don’t rule out a busy area with high foot traffic anymore, as it could be the difference between renting to a tenant or having a vacant lot.
Suburbs are taking on a new form
While the younger generation is moving away from the most expensive cities, they’re not exactly looking for the white picket fence out in the suburbs quite yet. The idea a suburb is starting to change for the millennial generation. Trends are starting to show that smaller cities that mimic the appeal of a big city (i.e. lots of walkability, transit options, etc.) are becoming more desirable to a younger group of renters.
Additionally, with the increase in technological advances coming to cities across the country, the idea that an area is easily accessible and convenient is high on the list of millennials who are looking to move.
Keep these trends in mind when searching for your next home or development project. Neighborhoods you may not have considered before may actually start surprising you!