Where to do the nation's hipsters like to hang their hats? The top zip code in the nation, according to a new analysis of rental returns, is St. Paul's 55101, which is smack dab in the middle of the city. Several Minneapolis zips made the top-25 list, but St. Paul mayor, Chris Coleman, didn't waste any time reacting to the news.
"I couldn't be more proud of our efforts to create a cool, but not too outwardly cool, vibrant but not too showy, and modern but also retro-feeling culture in our Lowertown area," Coleman said. "I might even buy some oversized chunky eye glasses and a fixed-gear bike."
“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,” the study said.
Saint Paul’s "Director of Hipster Recruitment," Joe Spencer had this to say: “I don’t think there’s anything I can really say,” then promptly cracked open a can of Pabst Blue Ribbon to celebrate the distinction.
The list was compiled by RealtyTrac, which "analyzed zip code-level data to identify established and emergent hyper-local hipster markets where investors can realize solid returns on rental properties while also enjoying low vacancy rates that ensure they won’t have much down time between renters."
Realtytrac started with zip codes that had a large population in the prime hipster age range — between 25 and 34, which accounts for 13 percent of the nation's population, and then focused on zip codes with more than 20 percent of the population in that age range. The list was narrowed to zip codes where at least 20 percent of the population either walked to work or used public transportation to get to work. The list was further winnowed to focus on only zip codes where renters accounted for occupancy at least 50 percent of all housing units, and the vacancy rate was 5 percent or less.
Tops on that list was 55101, a 2.9-square-mile area with a population of nearly 22,000, including downtown St. Paul and the Lowertown neighborhood - a hot spot for artists and creative types who are finding cheap rents and cool spaces in the many warehouses buildings that line those streets.
"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."
You can see the complete report by clicking here.