3 Bay Area Neighborhoods In Top 10 List Of Most Hipster-Friendly Zip Codes For Home Flips
SAN FRANCISCO (CBS SF) -- Hip is an ever-changing state of mind and varies from generation to generation. Currently, Merriam Webster defines hipster as 'a person who follows the latest styles, fashions... a person who is unusually aware of and interested in new and unconventional patterns.'
According to researchers hipsters are drawn to certain 'urban core neighborhoods' with older homes. They're moving in and bringing their vibe with them. Some call it 'gentrification', but hipsters just call it 'home.' We're seeing it happen all over the Bay Area, so we weren't surprised that three Bay Area zip codes made Forbes' Top 10 Hipster Zip Codes For House Flipping.
The list is based on data compiled by real estate website Realty Trac. Researchers used hipster-specific criteria. They identified zips experiencing a sudden surge in population, where at least 25% of the people living in them are between the ages of 25 and 34. At least a fifth of them walk or use public transportation to get to work. Finally, the homes purchased and flipped had, in the end, to bring at least a 50% return on investment.
Here are the Bay Area neighborhoods that made the Top 10 list:
#1 Berkeley 94702
At the top of the list of hottest zips for home flips is Berkeley 94702. It's borders are Sacramento Street to the east, San Pablo Avenue to the west, and Gilman Street and Alcatraz Avenue to the north and south, respectively. It comprises San Pablo Park and the North Berkeley BART station. Just outside its borders are the 4th Street Promenade to the south and the Gourmet Ghetto to the north.
For decades, this neighborhood was the heart of 'B-Town' and home to many of Berkeley's first African-American families and businesses. Dorothy Turner Everett opened Everett and Jones Barbecue on San Pablo in 1955 known for some of the best 'Q' in the Bay. NBA All-Star Don Barksdale grew up here and attended nearby Berkeley High. Neighborhood pharmacist William Byron Rumford wrote the Rumford Act that helped end housing and employment discrimination in California.
According to Realty Trac, in 2015 there were 16 home flips with a median gross profit of $310,500, and flippers earned a 52.6% return on their investment.
#5 Oakland 94601
Coming in at number 5 is Oakland 94601. The area is bordered by Brookdale Avenue to the west, the Alameda Tidal Canal to east, and 23rd and 55th Avenues to its north and south. International Avenue and E. 14th Street dissect this zip. People who live here call it The Fruitvale, and near the Oakland Estuary, it's Jingletown. They when remember the old Montgomery Wards building on International was made into loft spaces. Blacks, Latinos and whites have cohabited this neighborhood since World War II. The annual Cinco de Mayo parade still goes down in the 94602.
In 2015, there were 34 home flips in this zip according to Realty Trac, with a $192,500 median gross profit. Flippers earned a 87.5 return on their investment.
#8 Oakland 94606
Rounding out the top hoods in the Bay Area and coming in at number 8 is Oakland 94606. This neighborhood comprises half of Lake Merritt. Its jagged borders have on one end, 23rd Avenue, the Oakland Estuary on another, and the neighborhood just below I-580. It's walking distance to Chinatown, and a bike ride away from Jack London Square and the trendy Grand Avenue/Lakeshore shops and restaurants. Hop on a train at the nearby 12th Street Oakland BART station and you're in San Francisco in about 10 minutes.
According to Realty Trac, 11 homes in the 94606 were flipped in 2015 and flippers got an average return on investment of 74%. The median gross profit? $185,000.
