LAS VEGAS -- Two Las Vegas zip codes, 89119 and 89169, are among the nation's top 20 zips for flipping homes to "hipsters" aged 25 to 34, RealtyTrac reported.
Daren Blomquist, vice president of the real estate analytics company based in Irvine, Calif., quoted Census Bureau data from 2012 that placed homeownership within this age group at 41 percent nationwide. That is down from a high of more than 49 percent in 2004.
Blomquist said one reason hipsters -- RealtyTrac's term for this age group -- aren't becoming homeowners in greater numbers is that many are living with their parents longer. But he also quoted Gordon Miles, president and chief operating officer of the Prudential American Group, as saying:
"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. 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."
The 89119 zip code extends as far north as Country Club Lane, east to Eastern Avenue, south to Warm Springs Road and west to Interstate 15. Among the 27 homes flipped in this zip last year the average price was $109,554, yielding average gross profits of $55,665 for flippers. That was the 16th highest average gross profit among the top 20 zips on the list.
To the north of 89119 is the jagged-shaped 89169 zip code, portions of which extend north to Sahara Avenue, east to Eastern Avenue, south to Tropicana Avenue and west to Koval Lane. Among the 14 homes flipped in the 89169 zip last year the average price was $90,738, producing average gross profits of $46,708 for the flippers. That was the 18th highest average gross profit among the top 20 zips on the list.
To come up with its hipster zip code rankings, RealtyTrac considered only those zips where at least 15 percent of the population is aged 25 to 34, and where at least 15 percent of the population walks or takes public transportation to work. RealtyTrac also considered only zips with at least 10 single-family homes flipped in 2013 -- with flipping defined as the purchase and resale of a home within six months -- and where median home prices are no more than five times the median household income.
In the 89119 zip code, 17.7 percent of the population is aged 25 to 34 and 19 percent of the residents walk or take public transportation to work. In the 89169 zip code, 20.8 percent of the residents are 25 to 34 and 23.9 percent of the population walks or takes public transportation to work.