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Potential homeowners who’ve had their eyes on moving to Bedford-Stuyvesant may be in luck: they wont be facing as much competition from property-flippers looking to cash in on the trendy ‘hood. And they won't have to cancel their Citi Bike membership.
The former working-class neighborhood experienced one of the fastest gentrification processes in recent memory. Investors flocked to the area a little over three years ago when real estate speculators deemed Bed-Stuy the new “it” neighborhood. Individuals and families looking to actually live in Bed-Stuy were outbid by those looking to buy, renovate and re-sell for a profit. In just one year, the price for a Victorian-era brownstone increased over 40% to a price well over $1 million and the median price for multi-family properties increased from $652,000 to $975,000. The rapid change, however, has driven the prices so high that the profit margin for reselling has also decreased dramatically.
Speaking to the Daily News, Ban Leow, the head of Halstead’s Bed-Stuy office, said, “The entire market has shifted to a point where every new brownstone is fully fitted with the finest stuff.” Most of the houses up for sale now already have new appliances, updated bathrooms and tidy lawns and so they’re going for the highest prices homeowners are willing to spend in the area. Just as Alexander wept when he found there were no more lands to conquer, investors must mourn that there are no more properties left to refurbish.
Still, if you're looking to move better do so fast—rent prices have recently stabilized, but that could always change. It will probably only take a few minor celebrities moving to the area (or maybe a high-grossing action flick) to bring the investors back for another round of buying.
—Written by Tolly Wright