Gentrification Descends On Raleigh, N.C.
As we have explored at length here at Florida Home Loan, owning a piece of America is out of reach for some, and hard to hold on to for others. We have taken a look at a number of areas in and outside of Florida where a shifting real estate landscape is changing the way Americans live. Today we are focusing on Raleigh, N.C., where some condos are now going for $400,000 — a sign of soaring appreciation and a shift that may push lower- and even middle-income families out.
Many downtown Raleigh residents are concerned about new, higher-priced homes going up right beside them. While their property becomes more valuable as a result, owners worry about being faced with property tax bills they can no longer afford. Like many of his peers, James Williams has lived downtown more than two decades, but the retired teacher is now worried about his future in downtown Raleigh because of revitalization.
“It’s a good thing and there are drawbacks,” Williams said. “My major concern is the city will come in and take this property or some major developer will put enough pressure in to take the property without giving us a fair market rate.”
High-priced condominiums are going up two blocks from Williams’ house in one direction. In the other direction, there is more development still. In his mind, the drawback is gentrification — lower-income families forced out by a higher-income class moveing in. It is a widespread concern for many longtime residents of the city.
As the North Carolina capital city develops a new East Vision plan, it wants homeowners to feel more comfortable with the process. A gentrification workshop will be held to help them predict the future of their neighborhoods.
“There are areas where we see revitalization and gentrification occurring. I think the neighbors and residents want to see the area improve. Their concern is the uncertainty of the tradeoffs and impacts they’ll have to deal with,” said Mitchell Silver, director of the Raleigh Planning Department.
It’s a problem facing many of the nation’s real estate hot spots. The Sunshine State is certainly no exception. In some high-priced parts of Florida, including Palm Beach, local governments are working to make sure people are not priced out through taxes. Residents of Miami Beach share similar concerns, even after a new tax law was passed to assist them. Affordable housing initiatives have become a priority in Broward County.
The past few months have seen no shortage of local Florida tax flare-ups, with much debate sure to follow this year as the state deals with its affordable housing crunch. With markets that are very much in flux throughout the state, as a prospective buyer you should take into account not only the present value, but the projected future value — and the tax responsibility — of a neighborhood as you begin to think about a Florida home loan.
