Author Topic: Attn RE Investors: Hipster Zips for Rental Returns  (Read 3180 times)

footenote

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Attn RE Investors: Hipster Zips for Rental Returns
« on: November 21, 2013, 11:29:49 AM »
I know we have many landlords and wanna-be-landlords, so for your investment potential browsing pleasure, here's RealtyTrac's "Top Hipster Zips for Rental Returns:

http://www.realtytrac.com/Content/news-and-opinion/top-25-hipster-zips-for-returns-on-rental-properties-7940

(I booster-ishly note that St. Paul is the #1 hipster zip in the country, with Minneapolis occupying three additional Top 25 hipster slots.)

Undecided

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Re: Attn RE Investors: Hipster Zips for Rental Returns
« Reply #1 on: November 21, 2013, 11:37:27 AM »
I know we have many landlords and wanna-be-landlords, so for your investment potential browsing pleasure, here's RealtyTrac's "Top Hipster Zips for Rental Returns:

http://www.realtytrac.com/Content/news-and-opinion/top-25-hipster-zips-for-returns-on-rental-properties-7940

(I booster-ishly note that St. Paul is the #1 hipster zip in the country, with Minneapolis occupying three additional Top 25 hipster slots.)

Thanks. I'd like to buy a couple more inexpensive houses and I've never been to St. Paul .... Interesting that the 1% rule gets blown away so quickly.

arebelspy

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Re: Attn RE Investors: Hipster Zips for Rental Returns
« Reply #2 on: November 21, 2013, 05:24:38 PM »
I read through it a couple of times and am still not sure what this is supposed to be telling me or how I can utilize that information.

It seems like random data pulled into a chart to show.. something?

Maybe one of you can enlighten me?
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footenote

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Re: Attn RE Investors: Hipster Zips for Rental Returns
« Reply #3 on: November 21, 2013, 05:27:18 PM »
I have no clue how they generated these results, ARebSpy.

My (admittedly superficial) understanding is that recently-low-housing-cost areas are gentrifying. RealtyTrac's hypothesis is that a would-be landlord could buy in before the area is completely gentrified by high-rent-paying hipster renters.

rocklebock

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Re: Attn RE Investors: Hipster Zips for Rental Returns
« Reply #4 on: November 21, 2013, 08:00:47 PM »
This is pretty silly. It appears that the criteria for being a "hipster zip code" is "a disproportionately large population in the prime hipster age range between 25  and 34."  And before I even looked at the list I knew the ZIP where my rental property is located would be on it. The thing is, it covers a huge swath of the city, including: An area that was gentrified in the 80s-90s and is now $1M+ single-family homes and high-end shopping; some neighborhoods that hipsters and creatives started taking over from immigrant families in the early 2000s, but which now have median rents of around $2000 for a 2-bedroom; one fringe area where the hipsters still live if they haven't moved to other neighborhoods further south; then there's a pocket of pretty dismal and dangerous urban blight; and then a big commercial/industrial zone.

footenote

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Re: Attn RE Investors: Hipster Zips for Rental Returns
« Reply #5 on: November 22, 2013, 06:16:01 AM »
rockle - I agree. I took a closer look at 55408. "Uptown" Minneapolis has been under siege by apartment tower developers for the past two years. (Here's a garish example: http://limeapartments.com/)

55408 appears to be peak or even post-peak from a "get in early" RE POV.

Hubbard521

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Re: Attn RE Investors: Hipster Zips for Rental Returns
« Reply #6 on: November 22, 2013, 01:14:40 PM »
The zip where my rental is located is on this list.  It is admittedly a dense grove of hipsters.  While I think the metrics that were used to generate this list are a bit of a stretch, my zip, on this list, has consistently been on a few national real estate lists this past year listing areas that are expected to appreciate relatively rapidly.

madgeylou

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Re: Attn RE Investors: Hipster Zips for Rental Returns
« Reply #7 on: November 23, 2013, 07:19:59 AM »
Yeah this is pretty inaccurate for Pittsburgh. 15203 was the place to buy 10 years ago. Now it's all about 15206.

Kriegsspiel

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Re: Attn RE Investors: Hipster Zips for Rental Returns
« Reply #8 on: November 23, 2013, 09:23:02 AM »
What about 15201 and 15207 (maybe in a few years)?