MIAMI – Aug. 19, 2016 – A tight inventory of for-sale homes has forced some buyers to look beyond traditionally hot neighborhoods, and an uneven real estate recovery has created some areas that are diamonds in the rough. In a gentrifying neighborhood, new buyers fix up older homes that, in turn, attract more remodel-ready buyers and new businesses.
For real estate investors and homeowners, these gentrifying neighborhoods not only represent a great place to live, but their initial property investment could rise above the metro area norm as the area improves.
But how do investors and buyers identify these gentrifying neighborhoods?
RealtyTrac – now an ATTOM Data Solutions company – analyzed data in 3,561 U.S. zip codes with a combined population of 124 million to select the 35 best "bad" neighborhoods to buy a home. Four of those 35 zip codes are in Florida.
"The underperforming school scores and inflated rates of underwater homes in these markets demonstrates they are lagging the housing recovery seen across much of the rest of the nation," says Daren Blomquist, senior vice president ATTOM Data Solutions. "But it's clearly evident from this data that many individuals and institutions are betting on these hyperlocal housing markets to still bounce back.
"Home flipping returns are substantially above the national average, indicating strong buyer demand for fixed-up homes; construction loans are increasing, indicating increased development often at a large scale; and the share of millennial population is increasing, indicating that the pool of new renters and homebuyers is growing."
Gentrifying Florida zip codes
- 32211, Jacksonville: At No. 4 on RealtyTrac's list
- 33150, Miami: No. 14
- 32808, Orlando: No. 18
- 33034, Homestead: No. 30
RealtyTrac's complete list of 35 gentrifying neighborhoods can be found on its website.
© 2016 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.