Up & Coming Neighborhood January 2018 Update

January 15, 2018 by The727Team

This is an update for anyone interested in what I’ve noticed as far as up & coming neighborhood trends in the St. Pete area.  I just wanted to give a quick overview of what I’ve seen as far as development and potential buying opportunities in the St. Pete area recently.

South Kenwood

The area unofficially described as South Kenwood is still my number one pick for most rapidly developing area in St. Pete. Kenwood itself (north of Central ave between 16th St & 34th St) has become one of the most premiere neighborhoods in our city. People take an immense amount of pride renovating these homes and turning this neighborhood into a community. The rapid expansion of the Grand Central District has had an effect on both Kenwood and all the areas around it.

It’s interesting – If you take a trip through South Kenwood you will see a mix of renovated homes, new construction homes and plenty of dilapidated homes that still need a lot of loving.

This is a good sign for those looking to buy a home and put work into it. There are renovated and new construction homes selling anywhere from 250k-400k which are bringing up the value of this entire neighborhood. I’ve noticed Domain Homes has built or is in the process of building a significant amount of homes in this area. 

They recognize the potential of this area because it is:

1.  In a high and dry non-flood zone. This is one of the highest points in Pinellas County. After Hurricane Irma people are reconsidering their decisions to live in flood zones or even “Surge Zones”. A block construction home in a high and dry area is very appealing to many.

2.  This area is within walking distance to the emerging Grand Central District. If you’re unfamiliar with this area it is many times looked at as the first alternative to Downtown. There are dozens of local restaurants, 3 very popular breweries, block parties, art fairs and other local shops all within walking distance of each other. Living downtown with the luxury of walking to entertainment like this is very expensive so this is the number one alternative.

3.  This area is a straight shot to Downtown St. Pete on Central Ave or First Ave S. It is also only about a mile away which is maybe a 20 minute walk, 5 minute bike ride or 2 minute drive. If you walk/bike along Central there is also plenty of little shops to see along the way.

The Rapidly Expanding Grand Central District

A lot of people have recognized the potential of South Kenwood and because of that homes are getting snatched up fast. The best way to stay on top of this is to get on an MLS autosearch so the properties are sent directly to you once they hit the market. If this is a neighborhood you’re considering please reach out to us here and specify you’re interesting in South Kenwood.

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Historic Uptown

This area has a few things going for it. It is surrounded by established neighborhoods – It’s just north of Downtown, Old Northeast to the east and Crescent Lake and Euclid St Paul to the North. It also has St. Anthony’s hospital right in the middle of the neighborhood.

For whatever reason this neighborhood has been one of the slower to develop areas around Downtown. It is still in transition however there has been a lot of improvement in the area near round lake. I sold a house there a few months ago which made me look into this area a little more. I remember when I first moved here about 5 years ago I’d bike through this area and it was pretty run down.

There was a lot of run down homes and the type of people hanging out on the street that would look at you like you didn’t belong there.  A few things have happened since then – the expansion of businesses on 4th street and of course the development of Downtown.

Ever since the housing market has started to recover this area has seen a gradual improvement. The increasing values in surrounding neighborhoods has brought this area up as well.

We had a home sell for about 540k and is a sign that this area has come a long ways. If this same house was about 5 blocks east in the Old Northeast Neighborhood it would have easily sold for 800k or more. It’s a completely restored two story home from the 1920’s with a legal rental unit in the back. I personally think the Old Northeast neighborhood is overvalued and would not buy there. I think Historic Uptown is a great alternative that still has upside potential.

Even though this home sold for 540k, the rental unit almost pays for half of the mortgage after they purchased this home with 20% down. I think this neighborhood will continue to creep closer to Old Northeast values since there is still such a big disparity in home prices with neighborhoods that are literally only a few blocks from each other.

One thing I enjoy about these historic neighborhoods is that many of them have homes that are already zoned for multi-family use. I always advocate buying an income property to generate passive income to help free up some extra money. An extra $600-$1,200 a month is about what you’ll average owning a legal rental apartment on your property. More passive income = more personal freedom.  Here’s an article I wrote on the benefits of owning a income property in St. Pete.

If Historic Uptown is an area you’re interested in please reach out to us here and specify that you are interested in this neighborhood.

Well that concludes the January 2018 Up & Coming Neighborhood Update. As always feel free to reach out to me via email chrisformico@gmail.com or give me a call or text at 727-307-1111. Thank you for reading and have a great day!