Beacon housing in high demand after ex-Brooklynites transform Beacon

BEACON – After 10 years of chasing low-priced housing, Jessica Jelliffe, Jason Craig and their 2-year-old son, Charlie, decided to ditch the dream of living in Brooklyn and head north.

"It was like a catch-up game that we were constantly playing," Jelliffe said, recalling the real estate market in Brooklyn. "We tried to find places near our friends who lived in places like Williamsburg, but prices were always rising. Who wants to live like that? Who wants to live in a place where they don't feel secure? Especially when you're starting a family."

Then they visited Beacon. Jelliffe and Craig were instantly hooked — from the city's electrifying art scene and industrial chic architecture to its rich history and proximity to New York City.

They are one of many couples, priced out of Brooklyn, who are putting down roots in Beacon.

In fact, there are so many Brooklynites moving to Beacon that Beacon is sometimes referred to as New York's new upstate beatnik borough "Beaclyn." Millennials have even been spotted wearing t-shirts with the moniker "Bro No" or "Brooklyn North." But while locals and expats joke about the name, the influence of Brooklyn on Beacon is evident.

It's a trend that started almost 10 years ago but, according to Realtors, has exploded in recent years.

Beacon is so popular among Brooklynites that there's not enough affordable real estate to keep up with the demand, according to local Realtors.

"Last year was a good year," said Jonathan Miller, principal broker at JonCar Realty Residential and Commercial Sales. "We are hoping to project the same this year. But we don't have enough stock for people to want to come into the community that is on the market at the moment."

Miller, whose family has lived in Beacon for multiple generations, said that while a lot of people from different areas are looking to move to Beacon, 80 percent of his business is young families moving out of Brooklyn.

One reason might be that the median home price in Beacon in 2014 — $210,000 — was $300,000 less than the median in Brooklyn, according to online real estate database Zillow.

Charlotte Guernsey, owner of Gate House Realty, has been observing the Brooklyn-to-Beacon trend over the years. Gate House says it places at least one Brooklyn couple per month in Beacon.

"We are seeing mostly young families moving in," Guernsey said. "We find with many transplant couples that one might work in the Hudson Valley and the other might work in the city. It's convenient because Beacon is oriented within two highways and close to the train."

Several apartment complexes and lofts are popping up in the city to keep up with the housing demand. Gate House Realty is currently working on brokering a large, four-story building called One East Main on the shores of Fishkill Creek. Nineteen residential lofts will be offered for sale later this year in the factory space that has been vacant for 15 years.

Brooklynites are largely responsible for Beacon's booming population, which has increased by 1,000 people since 2010, according to Mayor Randy Casale.

"I've read census data that predicts the population will increase to 15,500 by 2020, but we are already there," Casale said. "And we'll have 400 residential units going up this fall, which will further increase our population."

Guernsey said Brooklyn expats are attracted to the "artistic transformation of Main Street" that she says started when Dia:Beacon, a museum for the Dia Art Foundation, moved in in 2003.

Once a forgotten and neglected post-industrial city, a revival is in full swing. Investors are seeing the value of the city's charming store fronts and old brick factories nestled between Mount Beacon and the shores of the Hudson River. And it's all within an hour's train ride from Grand Central Terminal.

Guernsey said Gate House has brokered 30 businesses on Main Street since Gate House Realty was incorporated in 2001.

"It's become a land of opportunity," Guernsey said. "It was a kind of an overlooked river town for quite a while, but it started to turn and now it's really rolling. It is only going to get better from here."

Many of the city's 19th-century brick-and-mortar buildings on Main Street have been restored and are now inhabited by coffeehouses, breweries and art galleries, while former factories are being converted into museums, hotels and lofts.

There's a microbrewery, The Hop, that serves up a vegan Reuben; a wine bar called Oak Vino Wine Bar; a gluten-free bakery; Ella's Bellas; and even a pet bakery, Beacon Barkery.

On weekends, weary urbanites filter into Beacon's restaurants and breweries, sampling the newest drafts and dining on dishes with fresh ingredients from local farms. They might stay at The Roundhouse's hotel, climb Mount Beacon, see a show at The Beacon Theatre or listen to well-known acts like Judy Collins and Red Molly at the new Towne Crier Cafe.

"Beacon is a destination now," Casale said. "We're hoping that with the new hotels popping up that people will look to us more as a weekend rather than a day getaway."

This city is also capitalizing on its appeal. On "Second Saturday" of each month, there's a city-wide celebration of the arts, when art galleries hold openings and artists receptions and culinary tastings. Many galleries, shops and restaurants also stay open late.

On those days, The Hop owners John Kelly, Chris Kavanagh and Matt Hutchins sometimes host "Chef's Table," where they invite customers to sample dishes that could appear on their menu.

The Hop recently changed locations to accommodate the influx of customers. Kelly said the boon brought on by weekenders, tourists and Brooklyn expats has been great for business.

"Our last place had a capacity of 49 and we only had 19 seats — three at the bar and then 16 at the little tables we had. Now, we have 127 capacity with 89 seats — and it's not even big enough anymore," Kelly said. "On weekends, we can have anywhere from 800 to 1,200 customers who dine in."

"If people are spending money in Beacon, it is good for everybody," Kelly said. "Yes, it puts money in my pocket and pays my staff so we can do business — that's all wonderful, but it also raises people's property values and puts Beacon on the map."

With Beacon's growing popularity, rents in the city are on the rise. Casale said the biggest challenge he faces as the mayor of a rapidly growing city is making sure locals are not priced out. The city has passed a local ordinance that states that, for every 20 apartments or condos built, one of those units has to be "workforce affordable."

"Before, Beacon was a very different place. We didn't used to go out as much," said Meghan MeKeel, who grew up seven miles from Beacon and moved there in 2005. Now, almost every day, we're looking for something new and who's offering what. It is gentrification. The people who are originally here are kind of being pushed out. But the quality of life is better here."

Amanda Purcell: apurcell@poughkeepsiejournal.com; 845-437-4807; Twitter: @amandajpurcell