After evaluating data from 3,561 ZIP codes, the real estate analysis firm RealtyTrac has chosen 35 cities that contain the best “down-and-out neighborhoods” in the U.S. for investors and buyers to consider.
“Many down-and-out neighborhood housing markets across the country are on the rebound thanks to a confluence of market forces working in their favor,” the firm said in a recent release. “Tight inventory of homes for sale combined with a dearth of new homebuilding is convincing buyers and investors to reconsider buying in what they once might have considered ‘bad’ neighborhoods.”
The East St. Louis area of Illinois and Missouri was at the top of the list. On down the list at No. 31 — between Homestead, Florida, and Hinesville, Georgia — comes the only Washington entry: Lakewood.
Only two other neighborhoods west of the Rockies — in Sacramento and Modesto, California — were on the list.
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Cities were chosen using several criteria, including the typical gross profit from flipping a house in 2015 ($73,986 in Lakewood); the percentage of resident millennials (29 percent in Lakewood); the percentage of homes with underwater mortgages (15.7 percent in Lakewood in the first quarter this year); and the median home sale price ($177,750 in Lakewood in the second quarter this year).
Lakewood communications manager Brent Champaco commented to The News Tribune: “The RealtyTrac article regarding the best neighborhoods in which to buy a home underscores something that we stress at the city: This is a great time to invest in Lakewood. Young people want middle-market homes and good neighborhoods for their families. Buying, remodeling or building a home in Lakewood is a great way to accomplish that goal.
“It doesn’t take a rocket scientist to know that Lakewood is primed for redevelopment activity,” Champaco said. “In essence, the RealtyTrac article found that when it comes to investing in a home for young families, Lakewood is the best community in the Puget Sound. We wholeheartedly agree.”
C.R. Roberts: 253-597-8535