{"id":97584,"date":"2018-03-20T16:00:54","date_gmt":"2018-03-20T22:00:54","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=97584"},"modified":"2021-03-16T13:51:44","modified_gmt":"2021-03-16T19:51:44","slug":"zip-codes-affected-gentrification-2000-complete","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/zip-codes-affected-gentrification-2000-complete","title":{"rendered":"The 20 U.S. Zip Codes Most Affected By Gentrification Since 2000"},"content":{"rendered":"

Love it or hate it, gentrification is a factor in today\u2019s real estate market. Generally controversial, gentrification\u2019s often-negative connotation comes from the notion that it displaces poor people \u2014 often minorities \u2014 in favor of yuppie, middle-class types.<\/p>\n

In 2015, Slate argued that this type of gentrification is actually a myth \u2014 that the socio-economic status of most neighborhoods is strikingly stable over time \u2014 <\/a>and calling for the politically loaded, long misunderstood term to be retired at last. A noble request, but one that has not been met by the masses.<\/p>\n

In fact, America\u2019s obsession with gentrification continues, reflected in entire-town renovation shows like Home Town <\/i>and Fixer Upper. <\/i>And new research from RentCafe<\/a> analyzed the 2000 Census<\/a> and the 2016 American Community Survey<\/a> to look for changes in 11,000 US zip codes over the past 15 years \u2014 culminating in a list of the \u201c20 most gentrified zip codes in America.\u201d<\/a><\/p>\n

The methodology is as follows: The analysts looked at three data points \u201ccrucial in determining whether gentrification is present: the\u00a0median home value<\/b>, the\u00a0median household income,<\/b>\u00a0and\u00a0the population that\u00a0holds a bachelor\u2019s or higher degree<\/b>.\u201d Says RentCafe: \u201cThe gentrification coefficient that gave us the\u00a0final ranking<\/b>\u00a0is a simple average of the ranks the zip codes obtained in these three categories.\u201d<\/p>\n

Related:<\/strong>\u00a0Buying in Advance of Gentrification to Maximize Appreciation<\/a><\/em><\/p>\n

And the Winners Are\u2026<\/h2>\n

The table below showcases the 20 US zip codes that have gentrified the most from 2000 to 2016, starting with the most gentrified:<\/p>\n

\"\"<\/p>\n

As you can see, Los Angeles\u2019 90014 came in on top with a 700 percent home-value change over the past decade and a half. Meanwhile, more than half (12 out of 20) of the most gentrified zip codes belong to East Coast cities \u2014 with zip codes from Brooklyn, Philadelphia, DC, and Manhattan appearing more than once on the list.<\/p>\n

Related:<\/strong>\u00a02018 Best Commercial Real Estate Markets to Invest In: Part I<\/a><\/em><\/p>\n

Home Values & What it Means<\/h2>\n

The average 2016 home value in the 20 zip codes identified as \u201cmost gentrified\u201d was $446,730, with an average increase of no less than 224 percent since the year 2000. Interestingly, this increase took place amidst a wave of supply growth \u2014 19 of the top 20 gentrified zips experienced increases in the total number of households between 2000 and 2016. Below are the zips with the biggest increases in home value since 2000.<\/p>\n

\u00a0\"\"<\/div>\n

Let\u2019s, for a moment, take a look at the median home value in New York\u2019s 10044<\/a> (Roosevelt Island): It went from just over $48,000 to almost $655,000 in 17 short years. Proportionally, this equals an astonishing 1,258 percent expansion rate \u2014 a thirteen-fold increase. Even in the tenth zip code down the list (Chattanooga, Tennessee\u2019s 37402<\/a>) the median home value has more than tripled \u2014 exceeding $574,000 from less than $169,000\u00a0in just 17 years.<\/p>\n

What does it mean? It means that if you invested in these zip codes during the past 17 years, your investments are killing it! Read more of the findings here!<\/a><\/p>\n

\"\"<\/a><\/p>\n

What do you think about gentrification? Is it cruel and unfair or a necessary advance? <\/em><\/p>\n

Share your points of view in the comments below!<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

New research from RentCafe looked at 11,000 US zip codes over the past 15 years \u2014 to come up with a list of the 20 most gentrified zip codes in America.<\/p>\n","protected":false},"author":306668,"featured_media":97590,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5528],"tags":[],"class_list":["post-97584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-news"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/97584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/306668"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=97584"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/97584\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/97590"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=97584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=97584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=97584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}