 |
| Daren Blomquist |
By Daren Blomquist, RealtyTrac Vice President
Hipsters have
been accused of holding back a more robust housing recovery because of their
low homeownership rates and lackluster household formation.
Certainly
there is data to back this up: the U.S.
Census bureau shows homeownership rates for hipsters (our term, not theirs)
— comprised of those aged 25 to 34 — was at 41 percent in 2012.
That is well
off the average hipster homeownership rate of 46 percent from 1982 to present,
and it’s certainly below the high of more than 49 percent in 2004.
The hipster
homeownership rate has been below the long-term average since 2009, and the
deficit in hipster homeowners because of that below-average period stands at
approximately 2 million.
 |
| Gordon Miles |
Why are
hipsters not becoming homeowners? In part because many are living with their
parents longer rather than forming their own households, according to analyses
of Census bureau data by PewResearchCenter
focusing on Millennials — a demographic heavy with hipsters.
But while
others may like to look at the glass as half empty, opportunistic real estate
investors might very well see the glass as half full.
As the Great Recession
fades further into the rearview mirror, these hipsters will likely gain the
confidence — and the jobs — to buy a home of their own.
“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.”
 |
| Charlie Bengel Jr. |
“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.
See RealtyTrac report on best
markets for renting to hipsters from November. Yes, we may be a bit hipster
obsessed.
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.
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.
"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."
But
ultimately a successful hipster flipping strategy ends with the bottom line
profit potential in each market. U.S. single family homes flipped in 2013
provided an average gross profit of more than $58,000, up from $45,000 in 2012,
according to RealtyTrac’s 2013
year-end flipping report.
Many markets
in hipster hot spots offer even bigger average gross profits.
For a complete copy of the company’s news release, please
contact:
Jennifer von Pohlmann
PR Manager
Office: 949.502.8300 ext 139
No comments:
Post a Comment