Your experience when owning property in gentrifying areas

[Ray Johnson]

I purchased a property from Bank of America, it’s located in the Northeast Washington DC area and right in the middle of a major gentrification zone of the “The Rhode Island Avenue Corridor”.

The “RIA DC” project is two blocks away, The project is a multi-phase 1,760 unit mixed use for Sale and for Rent product. Townhomes, Apartments, and Senior living, additionally there will be a grocery store and retail. The project begins next month in February 2018.

Did you see a decrease or increase in rental rates?

Did you see your existing property value increase or decrease once the new construction properties became available?

How long did it take before you saw the positive or negative impact to the gentrifying area once the projects were stabilized?

There has also been several other new construction projects that have come on line or scheduled to come on line within the next 12-24 months.

My property was built in 1963 and has been rehabbed several times with the latest rehabb taking place when I purchased it.

[Russell Brazil]

Strong rent growth and asset growth in gentryfying areas are typical. Ive owned in Petworth and did very well.

However you also have to look at development in the area as building of new residential units can soften rent prices sometimes. Ive seen this a few times, most recently by Union Station. Rents softened there with the building of all the new apartments and condos.  Over the long term you are probably ok, but in the short term it can make a surprising difference.