By Natalie Wise
In an interesting collision of events, the slowing of the home flipping market and the younger generation’s reluctance to buy homes, have combined to create a profitable niche of selling flipped houses to the so-called “hipster generation.”
Over the past five years, home buying by the “hipster generation” of young adults aged 25-34, has slowed as they ride out the recession by staying in rental situations or even at mom and dad’s house. But with the current positive outlook on the economy, they are easing their way back into home ownership.
There are many ZIP codes with opportunities for home-flipping profit. First-time home purchasers can get a great deal of a budget-friendly renovated home in an area they might not be able to afford or that is up-and-coming.
Fairfax (22031) and Alexandria, Va. (22312), topped RealtyTrac's list of best places to purchase a home to sell to younger buyers. Fairfax features the highest dollar amount of gross profit on a flipped home, but Alexandria has a better gross percentage profit. Both cities feature some of the highest populations of young people on the list.
Seattle (98133) is another area teeming with hipsters and home-flipping potential. Rockville, Md. (20852), is No. 4 on the list, with a low number of home flips but high potential profits.
The No. 5 city is Jersey City, N.J. (07307), which is tied with Denver (No. 11) for the second-highest percentage of the population aged 25-34.
Falls Church, Va. (22041), and Hyattsville, Md. (20784), are No. 6 and 7, with the two highest gross percentage profits on home flips (99 and 96 percent, respectively).
Oakland, Calif. (94621), is No. 8, and another section of Alexandria, Va. (22306), comes in at No. 9. Rounding out the top 10 is Concord, Calif. (94520).
Denver (80204) is No.11 and Charleston, S.C. (29403), is No. 12, both popular areas for home flips in 2013. Sacramento, Calif. (95817), is No. 13, and another zip code in the Jersey City area (07305) snags No. 14 on the list.
Chicago, Ill. (60629), is the No. 15 list, and two Las Vegas ZIP codes, a popular area for home flipping, make the list at No. 16 (89119) and 18 (89169). Sandwiched between the two Las Vegas ZIP codes is No. 17, Richmond, Calif. (94801).
Atlanta (30318) has the highest percentage of hipster residents, but one of the lowest gross profits.
Finally, Aurora, Colo. (80010), has potential for profits in flipping a home to a young first homeowner, and was a popular flip destination in 2013 with 22 flips.
If you’re still looking to make a profit investing in home flipping, consider these 20 areas to reach the younger generation of first-time home buyers.