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These local ZIP codes offer best opportunity for housing investment

20 July 2017

Investing in real estate in a "good" neighborhood can still reap high returns.

That's the conclusion from Attom Data Solutions, which earlier this month released results from one of its latest studies: the 2017 Neighborhood Housing Index.

Attom found that for more than 1,000 ZIP codes with an "A" rating, the median home sales price in the first quarter was $410,684. The median price for 382 ZIP codes came in below $250,000 and for another 27 ZIP codes, the price was below $100,000.

For the analysis, Attom looked at 5,185 ZIP codes in the U.S., evaluating several factors it says impacts neighborhood quality. Those include home price appreciation, affordability (calculated as price-to-income ratio), school scores, crime rate, unemployment rate, environmental hazard risk and property tax rate. Attom, which gave double weight to school scores, crime rate and affordability, then assigned grades of A through F for the ZIP codes.

Of 62 ZIP codes analyzed in the Charlotte metropolitan statistical area, 11 received an A. Here's the remaining breakdown: B: 26; C: 18; D: 4; and F: 3. A heat map can be found at the bottom of this article that allows readers to interact with the data.

The Iredell County ZIP code of 28166 in Troutman received the top grade locally and had a median sales price in the first quarter of $159,900.

These are the other Charlotte-area ZIP codes that received an A, along with their Q1 median sales prices:

  • 28173: Waxhaw in Union County ($345,000)
  • 28078: Huntersville in Mecklenburg County ($265,000)
  • 28037: Denver in Lincoln County ($246,500)
  • 28079: Indian Trail in Union County ($220,500)
  • 28110: Monroe in Union County ($177,250)
  • 28138: Rockwell in Rowan County ($144,250)
  • 29067: Kershaw in Lancaster County ($82,500)
  • 28677: Statesville in Iredell County ($110,000)
  • 28277: Ballantyne area of Charlotte in Mecklenburg County ($286,000)
  • 28031: Cornelius in Mecklenburg County ($239,500)

On the opposite end of the spectrum, the 28147 ZIP code in Salisbury received the lowest grade. Its median sales price in the first quarter was $158,000.

Here are the other local ZIP codes to receive an F:

  • 28146: Salisbury in Rowan County ($158,000)
  • 28054: Gastonia in Gaston County ($110,000)

Attom also assessed ZIP codes for average home-flipping returns in 2016 and potential annual gross rental yields on single-family rentals, though it did not add that information into its neighborhood-ranking index. That data was gleaned to provide insight for real estate investors of a given neighborhood's potential.

One Charlotte-area ZIP code in particular stood out in that assessment.

Located near Lake Norman, the ZIP code of 28037 in Denver landed at the top of Attom's list of top five solid neighborhoods with best flipping returns. According to Attom's data, the gross flipping return on investment soared 436.1% last year. Its median sales price in the first quarter was $246,500.

The parent of RealtyTrac, Attom Data Solutions is a California-based firm that provides real estate and property data. It routinely puts out reports on housing topics such as foreclosure activity, affordability and home flipping.

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