In the late 1990’s and early 00’s, Denver experienced a tremendous population boom. The area had a rapidly developing economy, an educated workforce, and environmental leanings. These qualities attracted scores of people, but soon it seemed Denver was too full, had grown too quickly.
Public projects began. New roads and highways; bigger and urban-centered public parks; diverse, affordable, and exclusive real estate beckoned new buyers. For a time the population crunch was quelled. Denver continued on its successful trajectory. It was recognized (and still is) as one of the best cities in the country.
Then the subprime mortgage crisis hit, and with it the economic recession—suddenly each of the city’s public projects, which were largely financed through taxpayers’ dollars, scrambled for adequate funding and direction.
Denver stayed afloat. It harnessed the innovation and perseverance of its population and maintained an economic balance. But there were still victims.
The real estate market, which lives and breathes on the public’s economic mindset, was in trouble. Hundreds of new projects were close to completion, or already completed, and yet buyers were hesitant, preparing more for their financial survival than real estate investments.
Denver is not yet in the wake, but the real estate market is showing signs—very early signs—of a recovery. People are forced to think creatively in a recession. Particulars are attended to and new trends closely examined. Old neighborhoods are sized up for their potential, and the real estate market tries to predict where buyers will congregate. They try to predict where the next hot neighborhood will be.
The Denver Post recently ran an article that took a closer look at this practice.
Broker Paul Tamburello of Distinctive Properties has spent years working in the Lower Highland neighborhood east of Federal Boulevard between downtown and the West Highland area near 32nd Avenue and Lowell Boulevard. He subscribes to what is known as the “barbell theory.”
“You want to look at the area between two ends of a barbell,” he said. “West Highland had already gentrified and was doing well, and Riverfront was about to explode onto the scene.”
He also suggests looking at where artists and the gay population are concentrating: “They tend to take more risks and are willing to go into neighborhoods that are emerging.”
The article also mentions that distressed property—in neighborhoods with homes that are largely owner-occupied—is something to look for. When the prices of houses hit bottom, owners will improve their property. This drives prices back up.
It’s also recommended to look for neighborhoods with signs of development. This is an indicator that something is happening. More than likely, people will be curious about the projects. This stirs interest and popularity.
michaelrussell
http://www.articlesbase.com/business-articles/denver-real-estate-using-the-barbell-theory-to-predict-hot-new-neighborhoods-729711.html