Gentrification is a powerful force that can transform neighborhoods—and for real estate investors, recognizing the signs early is key to unlocking incredible opportunities.
The ability to spot up-and-coming areas before everyone else does is what separates good investments from great ones.
When gentrification starts, it’s a sign that a neighborhood is poised for rapid growth and significant appreciation. If you know what to look for, you can get in at the right time and ride the wave as the landscape changes.
The problem is most investors don’t have an eye for spotting areas that are on the rise. By the time you’re hearing about a new city or neighborhood, you’re often already too late.
So, how can you stay ahead of the curve? It’s easier than you might think!
In this post, I’m breaking down three obvious signs that a neighborhood is gentrifying or about to take off.
These indicators are easy to spot and can be a game-changer for investors looking to benefit from shifting demographics and rising property values.
Signs Of Gentrification #1: New Concrete Everywhere
One of the first things I notice when gentrification is underway is the sudden presence of new concrete.
It might sound strange, but it’s a big tell.
Driveways, sidewalks, patios—all freshly poured.
When you start seeing crews tearing up old cracked sidewalks or people putting in new walkways, it’s a sign that the neighborhood is changing.
New concrete means people are investing in their properties, and they’re betting that the area is on the up swing.
I recently shared a tweet about this exact phenomenon:
Newly poured concrete is probably my #1 most obvious sign that an area is rapidly gentrifying.
— Travis Biziorek (@TravisBiziorek) September 16, 2024
Here's an example and here's a short thread on why I view it as such a huge deal… 🧵 pic.twitter.com/gelp2iNKnW
In C/C+ areas, new concrete adds basically zero value to a property in terms of higher rents or sales price—it’s purely aesthetic.
Investors avoid it because it’s expensive and doesn’t directly improve cash flow.
But homeowners? They love it.
And that’s the tell.
You start seeing homeowners putting money into their properties, making them more appealing, and that’s a clear sign of the neighborhood transitioning.
It’s a sign the area has made the turn into, at a minimum, B- territory.
For investors, this is a key visual cue.
People don’t spend money on curb appeal unless they believe their property value is going to increase.
In my experience, seeing new concrete is like a flashing sign that the neighborhood is about to take off.
Signs of Gentrification #2: Lawn Maintenance Companies
Another clear indicator of gentrification is the sudden influx of lawn care services. In neighborhoods that are just starting to change, you’ll begin to see professional landscaping companies rolling in.
It’s no longer just the guy down the street mowing his lawn—now it’s uniformed crews trimming hedges, planting flowers, and edging along sidewalks.
I paid $175 to have the grass cut at 5 of my Detroit rentals yesterday.
— Travis Biziorek (@TravisBiziorek) April 22, 2024
I'll do this every 2-weeks until the end of October.
That means it will cost me $4,375 to have the grass cut this year.
My attitude toward this has completely changed.
I'm happy to pay it. Here's why. pic.twitter.com/V1RLXl2NZa
When I see this, I know the neighborhood is attracting residents who value aesthetics and have the disposable income to pay for these services.
It’s a sign that the area is becoming more desirable, and people are willing to invest in maintaining their homes’ curb appeal.
This shift often signals that property values are climbing.
Sign #3: Coffee Shops Moving In
I know it’s a bit of a cliché, but coffee shops are a surefire sign that gentrification is in progress.
Not just any coffee shop, though—I’m talking about the kind that is locally owned and operated and directly targets the vibe and culture of the neighboring area.
When a neighborhood gets its first “grassroots” coffee shop, it’s a strong indicator that new residents with higher incomes are moving in.
I’ve seen this pattern time and time again.
Two recent examples include the Morningside Cafe which opened in late 2023 in the Morningside neighborhood and The Congregation that opened in early 2020 near Boston-Edison.
I’ve visited both of these establishments plenty of times. They are unique, oozing with personality, and have owner/operators at the helm.
In other words, they are not your typical, sterile, zero personality Starbucks.
And that’s what’s important.
They are community driven and focused. They precede the “big box” coffee shops that so many people focus on when looking for up-and-coming investment areas.
If you’re seeing a Starbucks on the corner, you’re late!
The coffee shop is often the first new business to set up in a transitioning neighborhood. It brings in foot traffic, and soon enough, more businesses start to follow.
For investors, this is a prime opportunity—if the coffee shop is thriving, it’s likely only the beginning of the neighborhood’s transformation.
Final Thoughts on Signs of Gentrification
If you’re looking for up-and-coming areas that might soon be going through rapid gentrification, these are great signs to look for.
New concrete, lawn services, and trendy coffee shops are all indicators that the neighborhood is on the rise. Spotting these changes early can give you a chance to get in before property values start climbing significantly.
If you’re already invested in an area and you start noticing these signs, it may be a good time to consider doubling down before prices get away from you, potentially making the area less profitable for investors.
Recognizing the early stages of gentrification can make all the difference in staying ahead of the market and maximizing your returns.
It takes confidence to invest in areas that still have rough edges, but if you trust your instincts and take action, the rewards can be substantial.
I’ve been fortunate to benefit from these changes in different Detroit neighborhoods, and I’m always on the lookout for the next hot spot.
Some of my favorite investments have been properties in areas that looked rough, but I saw the telltale signs and I went for it!
Within a couple of years, they’ve appreciated significantly, and rents followed.
Trust yourself, take the leap, and you might just find your best investment yet. You don’t want to look back and think about the opportunities you missed.