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While Brooklyn hipsters are increasingly paying Manhattan-like rents for their lofts, luxury apartments and luxury lofts, landlords looking to make a tidy profit on the skinny-jeans set need look no further than Queens.
A new study shows two trendy Queens ZIP codes, one in Sunnyside and another in Astoria, beat out just one in Brooklyn on a list of 25 cash cows across the country where investors can get the highest yields on rentals.
“While the precise definition of hipsters is elusive — which is likely just how they want it — there’s no doubt the culture surrounding the hipster lifestyle has a major impact on local real estate markets, and mostly in a positive way,” according to the special report by the industry research firm RealtyTrac. “As a nascent hipster market emerges, it can be an extremely appealing target for real estate investors looking to make some quick fix-and-flip profits or to purchase rental properties that provide a steady cash flow and the promise of strong appreciation going forward.”
The study defined a hipster neighborhood as one where at least 20 percent of the population is between the ages of 25 and 34 and at least 20 percent of residents either walked or took public transportation to work. RealtyTrac narrowed the list to ZIP codes where at least 50 percent of people rented and where vacancy rates were 5 percent or lower.
Sunnyside’s 11104 ZIP code, stretching east from 39th Street to 42nd Street, Greenpoint Avenue and 49th Street, was the five boroughs’ highest showing on the list, placing 12th. Home to popular eatery Salt and Fat and the neighborhood favorite Molly Bloom bar, 11104 boasts average rents of $1,870 a month for a three-bedroom apartment and median property prices around $380,050. Investors can look forward to a 5.9 percent gross yield on their rental properties, according to the report.
Not far behind at No. 14 on the list is Astoria’s trendy 11102 ZIP code, which stretches roughly from 33rd Street to the East River between 31st and 24th avenues. Higher average rents of $2,600 a month and median home prices of $435,000 in the neighborhood across the street from the Bohemian Hall & Beer Garden offer a gross yield of 5.69 percent.
Brooklyn’s 11232 came in just behind Astoria with a yield of 5.66 percent. It covers parts of Sunset Park and Sunset Park West.
Topping the list were ZIP codes in Saint Paul, Minn., and Pittsburgh, where yields reached higher than 10 percent.
Reach reporter Rich Bockmann by e-mail at email@example.com or by phone at 718-260-4574.
©2013 Community Newspaper Group
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