Not sure how I missed this thread in the past, but as a 7-year resident of one of these neighborhoods seeing some turnover, here’s a micro analysis of what’s happened so far.
My neighborhood (east edge of Boylan Heights) is a small collection of 22 small houses, most under 1900 sq ft and the only way to expand for most is to go up. Almost all of the houses were either completely rehabbed or built new starting in 2008, with the last current generation “original owners” moving in around summer 2014. The neighborhood saw a baby boom between 2013-2018, with about 10 families adding 1-2 children to their households. As of last week, here are some stats:
- One of the smallest houses has sold twice (once for more space to east of Oakwood Dog Park area; once due to something else).
- One house has been a rental for seven years. Original owner moved to Atlanta and an international investor purchased as a rental property. Current tenant is trying to purchase.
- One house has been a rental for three years because the new spouse didn’t think downtown was safe for the kids. Original owner lives in a big house north of 540 but wants to come back when kids are grown.
- Three houses became rentals. One was an interstate move, two other families moved for “more space” to off Tryon Rd (2500 sq ft) and Lake Wheeler area respectively (3100 sq ft). All subsequently sold after about a year or two of being rentals and are currently owner occupied.
- Five were sold to move to bigger houses (three of these homes were 1600+ sq ft—the largest houses in the neighborhood). Families now live in Cary (2200 sq ft), North Hills (teardown/rebuild - 6800 sq ft ), North Raleigh (new lux subdivision - 3700 sq ft), University Park (2527 sq ft), and Sunset Hills (2975 sq ft).
Survey says that people apparently need >2000 sq ft for a family of four these days. Also, I think the current selling prices are too tempting for someone to hang onto as a rental, especially if they’re looking for more space. They need their equity for a down payment on that $600k house they’re moving to.
There is one family currently trying to decide between adding on (building up) or moving. They love the neighborhood but need more elbow room in their 1200 sq ft house.
My house is just shy of 1300 sq ft, and we’ve thought about building up. No kids at the moment, but it would be nice to have a tad more room. At current RE prices, we’d still have plenty of equity even after spending a small fortune to add on, but we’re not sure if we can survive living in a construction zone. On the other hand, if we sold, where would we go? Our current location is completely unique and current RE prices for equivalent location are a no-go. We’ve lived downtown for 12 years and in a walkable area of Miami before that, so no burbs for us.