What is “in the Path of Progress”?
Simply put, the term “path of progress” means when positive demographic trends are heading in a specific geographic location. For instance, when new infrastructures like housing developments, freeways, or a new public transportation system begin to open in a certain neighborhood this becomes a path of progress.
Likewise, the path of progress means growth and jobs fueling a rising local economy.
How to Look for a Path of Progress?
What are the positive indicators for a path of progress? What signs point to future progress?
Recently, we published a blog post titled: “How to Find a Growing Real Estate Market”. We included links to valuable resources that complement the suggestions in this post. After reading this post, we recommend viewing this recent post too.
Look for these signs of progress in a local community.
Inward Migration (Residential Housing)
Any new large housing developments coming to your neighborhood? Are their points of convergence of major housing developments you can see on a map in your city?
Expect the nearby streets to experience commercial developments to cater to the new neighbors. For example, new stores, restaurants, entertainment venues, and shopping centers.
Will your city’s boundaries expand soon? If so, where is the bulk of expansion?
Suburb development occurs when new residents appear as buyers and renters. Population growth means economic opportunities for the nearby streets.
Look at the U.S. Census Bureau data about population projections within your path of progress.
Are there any new large companies coming to your region? A positive inward migration of businesses indicates a growing business community that will bring employees, renters, and economic development.
This includes all types of companies, businesses, industrial, high-tech, warehouse, manufacturing, and offices. Here’s how to keep track of new businesses to your location:
- Join business groups and the Chamber of Commerce;
- Read local newspapers and business journals;
- Network with local commercial brokers to find out about new commercial spaces that opened in your location;
- Find out if there are an abundance of businesses for sale; and
- Set up free Google Alerts (Trends) for notices of new businesses in your region.
Keep an eye on new or expanding public infrastructures projects like freeways, public transportation, bus routes, and government employment.
Transportation in all forms plays a big part in the path of progress. A new light rail system in the planning stages offers a positive sign of the path of progress. Increased traffic, demographics, and environmental impact studies all indicate new public infrastructure projects.
Keep an eye on local newspapers stories announcing new government projects. Network with plugged-in business persons who know what’s coming. Know what the federal, state, and local governments are planning for your area.
Keep an eye out for press releases announcing new infrastructure projects, large companies relocating, or setting up a branch office in your area.
New Sports Venues – Past Successful Paths of Progress
Let’s explore the rise of ballparks as an example of past paths of progress.
Many local real estate investors became wealthy before World War II buying land near ballparks. Back then, major city baseball parks sprung up in the middle of nowhere. The New York Mets Shea Stadium sprang up in the Queens borough surrounded by auto salvage yards.
By the 1960s, many stadiums existed on cheap land far away from where the fans lived who traveled to the games by car and then went home. Ballparks failed to capitalize on their fans.
Things changed when Baltimore’s Camden Yards opened. Shortly after, the Inner Harbor area offered bars, restaurants, and shops making going to the game and hanging out afterward fun. Instead of battling traffic nightmares after the game, fans stuck around.
Bank One Ballpark (now Chase Field) in Phoenix, Arizona built over a former military base where many businesses opened in the Stadium District catering to the fans.
Petco Park, home of the San Diego Padres featuring Gallagher Square, is a public park and community gathering place with the Sycuan Stage concerts venue. The San Diego Eater lists 13 international cuisine restaurants near Petco Park in 2021.
Progressive (Jacobs) Field in Cleveland built on the lake created a “downtown renaissance”.
Besides baseball, new NFL football stadiums, NHL hockey arenas, and NBA basketball arenas create an economic boom for nearby businesses catering to fans.
For example, Seattle just opened the Climate Pledge Arena for its new NHL Kraken hockey team in October 2021. The surrounding neighborhood experiences a real estate boom with many new businesses opening up for the fans.
San Diego Proposes a Makeover for a Sports Arena’s Nearby Vacant Land
The project includes new housing, hotels, restaurants, and shops with lots of inviting green space. But, the California Department of Housing and Community Development is questioning the lack of enough “affordable housing” in the project. The differences may settle soon.
San Diego Housing Market Becoming a Path of Progress
Recent San Diego news media stories about the local housing market describe how San Diego County is becoming a path of progress.
“San Diego home-price gains blow by other California markets”. August 31, 2021, the San Diego Union-Tribune news story.
“San Diego County on track to build 10,000 more homes this year”. September 8, 2021, San Diego Union-Tribune news story.
Two new California laws where one allows lots zoned for single-family housing to have up to four units. The second law allows local governments to approve up to 10 units on single-family zoned lots. The following news media stories show how it will affect the San Diego housing market.
“California Governor Newsom signed two new laws increasing new housing”. September 17, 2021, San Diego’s FOX 5 News story.
Fox 5 published a follow-up story about how the new laws will increase San Diego’s available housing after the new permitting process gets implemented and the maximum size of allowed units.
How To Buy Real Estate “In The Path Of Progress” – Conclusion
You just read how to buy real estate “In The Path Of Progress”. Now put this lesson to work.
Look for these signs of progress in a local community:
- Inward migration (residential housing);
- New employers;
- New or expanding public infrastructure; and
- Sports venues opening.
Take out a map of your city or state and begin plotting some of the above indicators. You will soon begin to see patterns. Will your future investment assets be located on these paths of progress?
This is why real estate is the playground for the well-connected and wealthy.
Locate properties in the path of progress. Look for areas that will improve with new investments and economic activities. Your analysis of the location and its future potential can make you wealthy.
After you find the best city or neighborhood you must look for underachieving properties to buy like:
- Income properties tired and worn down; and
- Sound properties that underperformed due to poor management.
Buy and upgrade them. Wait for the path of progress to reach you. Then, cash in on the rental income from businesses seeking to cater to the new population. Or, sell your properties for big profits.
View our blog post titled: “How To Invest In Multi-Family Real Estate” for tips on successful multi-family rentals investments.
San Diego – Lots of Sunny Beaches and a Path of Progress
As we mentioned above, several news sources report that San Diego County may experience up to 400,000 single-family lots converted into four separate homes.
Also, the development of surrounding real estate at the Pechanga Sports Arena may include housing, hotels, restaurants, and shops.
That’s why San Diego County is becoming a path of progress!
Interested in Investing in San Diego County?
Learn about the “San Diego Real Estate Closing Costs” to know the costs and fees with escrow closings in San Diego.
Steven Rich, MBA – Guest Blogger
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