Is there a general rule about premiums to pay for a neighborhood v. another in the same town?

Question

I live in a very small town-- the entire town is very nice overall but there are 2 distinct sections. One section is very nice while the other section is nice but a ton of money is being put into it to revitalize this section of town. It is making this new section of town a bit more desireable by a small margin but all would agree that there was a small margin. Is there a rule of thumb about difference in price of square footage? If one section of town was selling at $519 per square foot what should the revitalized section of the same town be selling at knowing that this section of town is only 1/2 mile away from the other part of town? Any suggestions? The city is Hoboken, NJ.

Answer 1

There really is no rule of thumb, it all goes to how desireable the different sections are but there are many, many factors that determine "desirability".  Instead of going about it this way, I'd just find out what houses are selling for in the different areas and from that you can calculate the average prices in both areas.