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RealtyTrac Ranks Best Zips for Flipping Homes to Hipsters

Washington D.C. Metro Accounts for Six of the Top 20 Zip Codes; 10 Zips Post Gross Profit of 50 Percent or Higher

February 6, 2014 10:51 PM EST Send to a Friend

IRVINE, CA -- (Marketwired) -- 02/06/14 -- RealtyTrac" (www.realtytrac.com), the nation's leading source for comprehensive housing data, today released a special report identifying the top 20 zip codes for home flipping to hipsters -- where a home is purchased and resold for a profit within a six-month period.

RealtyTrac analyzed zip code-level data to identify markets with a large population of hipsters where investors are realizing the biggest profits from flipping homes, and where buying a home is affordable for median-income buyers -- to ensure continued demand for homes being flipped.

To qualify as a hipster hot spot, a zip code had to have at least 15 percent of its population between ages 25 and 34 (above the national average of 13.2 percent) and have at least 15 percent of its population walk or take public transportation to work (above the national average of 20 percent).

To qualify as a good market for home flipping, a zip code had to have a minimum of 10 homes flipped in 2013, a median home that was five times or less the median household income and an estimated monthly house payment -- including mortgage, taxes and insurance -- that was lower than the average fair market rent for a three-bedroom home .

Top 20 Zip Codes for Flipping Homes to Hipsters


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                                        Pct Walked
                          25-34 Pct of  or Public  Number
ZIP   City         State  Population    Transit to of Flips
                                        Work       2013
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22031 Fairfax      VA     19.5          19         24
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22312 Alexandria   VA     20.9          15.6       26
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98133 Seattle      WA     17.3          17.3       18
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20852 Rockville    MD     19.8          29.2       10
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07307 Jersey City  NJ     21.7          49.9       10
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22041 Falls Church VA     17.6          21.1       14
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20784 Hyattsville  MD     16.8          19.7       24
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94621 Oakland      CA     15.2          17.9       13
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22306 Alexandria   VA     16.0          16.1       23
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94520 Concord      CA     20.1          16.6       37
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80204 Denver       CO     21.7          19.9       22
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29403 Charleston   SC     17.9          22         32
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95817 Sacramento   CA     20.1          15.8       20
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07305 Jersey City  NJ     16.0          38.8       18
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60629 Chicago      IL     15.6          20.4       18
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89119 Las Vegas    NV     17.7          19         27
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94801 Richmond     CA     16.1          20.6       16
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89169 Las Vegas    NV     20.8          23.9       14
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30318 Atlanta      GA     21.8          16.5       41
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80010 Aurora       CO     17.8          15.4       22
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-------------------------------------------
      Avg Flip  Avg Gross Gross  Price to
ZIP   Purchase  Flip      Profit Income
      Price     Profit    Pct    Ratio
-------------------------------------------
22031 $456,000  $210,200  46%    4.95
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22312 $271,667  $185,333  68%    4.80
-------------------------------------------
98133 $241,041  $147,145  61%    4.89
-------------------------------------------
20852 $345,071  $141,233  41%    4.20
-------------------------------------------
07307 $295,183  $140,333  48%    4.89
-------------------------------------------
22041 $362,360  $129,590  36%    2.46
-------------------------------------------
20784 $118,473  $117,084  99%    3.09
-------------------------------------------
94621 $121,380  $115,970  96%    3.59
-------------------------------------------
22306 $294,750  $113,083  38%    4.43
-------------------------------------------
94520 $236,881  $106,674  45%    3.88
-------------------------------------------
80204 $139,480  $92,668   66%    3.78
-------------------------------------------
29403 $183,327  $82,986   45%    4.98
-------------------------------------------
95817 $112,941  $77,177   68%    3.24
-------------------------------------------
07305 $129,747  $76,567   59%    3.15
-------------------------------------------
60629 $94,923   $63,583   67%    2.19
-------------------------------------------
89119 $109,554  $55,665   51%    2.10
-------------------------------------------
94801 $140,652  $50,893   36%    3.56
-------------------------------------------
89169 $90,738   $46,708   51%    2.09
-------------------------------------------
30318 $103,200  $36,125   35%    2.84
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80010 $97,739   $34,600   35%    2.79
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The U.S. Census bureau shows homeownership rates for people aged 25 to 34 (the prime demographic for hipsters) was at 41 percent in 2012. That is well off the average homeownership rate of 46 percent from 1982 to present for that age group, and it's certainly below the high of more than 49 percent in 2004. The homeownership rate for this age group has been below the long-term average since 2009, creating a deficit of hipster homeowners.

"The low hipster homeownership rate of the past five years translates into a market of potentially millions of first-time homebuyers looking to find a home that matches their budget and fits into their hipster lifestyle," said Daren Blomquist, vice president at RealtyTrac. "Real estate investors who want to tap into that trend should start with location: finding homes in communities with a heavy hipster demographic, and that are affordable for that demographic."

Broker perspectives "The overcorrection of the Las Vegas housing market and the ability to find a lightly distressed property are a couple of the main factors that make flipping a home in Las Vegas profitable," said Gordon Miles, president, COO of Prudential Americana Group, covering the Las Vegas market. "Las Vegas zip codes 89169 and 89119 are older zip codes that were hit hard during the foreclosure crisis, offering buyers great opportunities to flip in this area. Add in the close proximity to the Las Vegas Strip and UNLV, and it becomes a prime area for flipping to the hipster demographic. The community surrounding the university has all started to change with the addition of new restaurants and hip shops, and we're noticing the areas that were once old are becoming new again."

"Another great side to flipping in these zip codes is Las Vegas is experiencing excellent rental returns so if you buy a property, flip it and end up holding on to it as a rental property, you'll still see profit," he added.

"We continue to see low housing inventory in the D.C. metropolitan area, making homes that have been flipped more attractive to potential home buyers," said Charlie Bengel, Jr., CEO of RE/MAX Allegiance, covering the Virginia, Maryland and D.C. areas. "By purchasing a flipped home, they are able to get into a home that feels new while still being in an established neighborhood."

About RealtyTrac Inc. RealtyTrac (www.realtytrac.com) is the nation's leading source of comprehensive housing information, with more than 1.5 million active default, foreclosure auction and bank-owned properties, and more than 1 million active for-sale listings on its website, which also provides essential housing information for more than 95 million homes nationwide. This information includes property characteristics, tax assessor records, bankruptcy status and sales history, along with 20 categories of key housing-related facts provided by RealtyTrac's wholly-owned subsidiary, Homefacts. RealtyTrac's foreclosure reports and other housing data are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.

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Source: RealtyTrac




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