SOHO

THE BASICS: Fabulous young couples, wealthy singles, and ex-suburbanite empty-nesters long ago took over Soho from the artists. As a result, just about every boutique on Madison Avenue has opened a downtown satellite, and a Bloomingdale’s is slated to appear later this year. Crowds can be overwhelming on the weekends, says resident Linda Erman. “But during the week, it’s still wonderful.”

WHAT’S NEW: There isn’t much left to develop, but the area has seen a few recent conversions. The six-story cast-iron building at 419 Broome Street, near Crosby, houses three 4,400-square-foot lofts. The townhouse condos at 175 Sullivan Street have working fireplaces and terraces. And 388 West Broadway has five sweet full-floor lofts with great understated bathrooms.

BARGAIN HUNTING: “Finding anything under $1 million in Soho is a job,” says Siim Hanja of Stribling & Associates. The tenement-style buildings on Thompson and Sullivan Streets hold modest studios and one-bedrooms. Also, look below Broome Street and east of Broadway.

HOT SPOTS: Peep, on Prince Street, wins fans for its sleek décor and innovative Thai cuisine. Théo, a swank place to the west, attracts scenesters for New American food and drink. Fiamma is a bona fide hit, and not just for its fancy glass elevator.

PREDICTION: Soho is premium turf now, the kind that holds its value over the long term. But the past year has been rough, especially in the $2 million–and–up range, and it’ll take time for that segment to recover. Consistent demand for lofts under $1 million should keep that market strong.