Which big city neighborhoods have a growing number of affordable homes? The answer could well lie in Philadelphia and Baltimore, two east coast cities with a growing number of affordable neighborhoods according to a report by Redfin [1].
The report [2], which is an adaptation of its annual Hottest Neighborhood report, determines which hot neighborhoods are within reach for the average homebuyer and limits the price cap to $294,000.
Apart from Baltimore and Philadelphia, the report indicated that in 2019 the hottest affordable neighborhoods were concentrated in Chicago, Portland, Boston, and San Antonio. In fact, McKinley Park in Chicago got the top rank for being the hottest affordable neighborhood with a median sale price of $270,000 and 35.1 percent homes sold above the list price.
"Homebuyers are flocking to McKinley Park because it's just south of Pilsen, which is one of the trendiest neighborhoods in the country, and it's just west of long-established Bridgeport. People who are priced out of Pilsen are looking in McKinley Park," said Redfin agent Niko Voutsinas.
Among Philadelphia neighborhoods, the report found East Mount Airy to be the most affordable with a median sale price of $200,000 and 28.1 percent homes sold above the list price. East Mount Airy came second in the overall rankings and was followed by Parkville, Baltimore that boasted a median sale price of $204,000 and 24 percent homes sold above the list price.
Two more Philadelphia neighborhoods—Bustleton in sixth place and Fox Chase in ninth place—also featured among the top 10.
The other Baltimore areas that found a place among the 10 hottest affordable neighborhoods included Hamilton in fourth place and Linthicum which came in seventh.
While most of the neighborhoods were concentrated on the east coast and the Midwest, San Antonio's Beacon Hill took the 10th spot in the rankings with a median sale price of $213,264 and 46.2 percent homes sold above the list price. The only West Coast neighborhood to find a place on this ranking was Fircrest, Vancouver, in the Portland, Oregon metro area. With a median sale price of $285,00 and 20 percent of the homes sold above the list price, Fircrest secured the fifth spot in the overall rankings.