Investors Target ‘Hipster’ ZIPs for Flipping
Hipsters usually refers to a subculture of 20-something or 30-something men and women who follow the latest lifestyle trends and fashion. Many hipsters have delayed forming their own households and are living with their parents longer to get more control over their finances and find steadier employment, RealtyTrac reports. But some investors are banking on the hipsters’ flood into the housing market soon.
“The low hipster home ownership rate of the past five years translates into a market of potentially millions of first-time home buyers looking to find a home that matches their budget and fits into their hipster lifestyle,” RealtyTrac reports.
Some real estate investors are targeting affordable communities where this growing hipster demographic may decide to settle.
The average gross profit nationally of a single-family home flipped in 2013 was more than $58,000. But areas known for a high number of hipsters are offering much higher returns on flips, according to RealtyTrac’s analysis.
RealtyTrac recently released its latest analysis on the best ZIP codes for the most profitable flipping to hipsters. They factored in the percentage of the population in the 25-34 age group, walkability to public transportation, average flip purchase price and gross profit, among other factors. Read more about the survey methodology used at RealtyTrac.
Here are some of the ZIP codes that made it to the top of RealtyTrac’s list for home flipping for hipsters:
- 22031: Fairfax, Va.
Average gross flip profit: $210,200
- 22312: Alexandria, Va.
Average gross flip profit: $185,333
- 98133: Seattle
Average gross flip profit: $147,145
- 20852: Rockville, Md.
Average gross flip profit: $141,233
- 07307: Jersey City, N.J.
Average gross flip profit: $140,333
- 22041: Falls Church, Va.
Average gross flip profit: $129,590
- 20784: Hyattsville, Md.
Average gross flip profit: $117,084
- 94621: Oakland, Calif.
Average gross flip profit: $115,970
- 22306: Alexandria, Va.
Average gross flip profit: $113,083
- 94520: Concord, Calif.
Average gross flip profit: $106,674