Investors Target 'Hipster' ZIPs for Flipping
February 19, 2014
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
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
Updated: June 05, 2020