Best Neighborhoods for Real Estate Buying and Investing
InsightNews Industry Trends

Best Neighborhoods for Real Estate Buying and Investing

Neighborhood Housing Index

The top five neighborhoods in this ranking represent a diverse set of markets across the country, illustrating that great neighborhoods come in many different forms..

The ATTOM Data Solutions 2018 Neighborhood Housing Index uses new neighborhood boundary data to rank more than 10,000 neighborhood housing markets nationwide based on six factors impacting the hyperlocal housing market: affordability, home price appreciation, school scores, crime rates, unemployment rates and property taxes.

The top five U.S. neighborhood housing markets based on the index were the Pine Ridge neighborhood in the Naples, Florida, metro ($632,871 median price); Westlake neighborhood in the Mobile, Alabama, metro ($196,179); Union neighborhood in the San Jose, California, metro ($795,000); Westmoreland neighborhood in the Charlotte, North Carolina metro ($326,000); and Hunters Hill neighborhood in the Denver, Colorado, metro ($271,000).

“While home prices are typically higher in higher-ranked neighborhoods with better schools and lower crime, there are still many top-notch neighborhoods with more reasonably priced homes,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “The top five neighborhoods in this ranking represent a diverse set of markets across the country, illustrating that great neighborhoods come in many different forms.”

A-rated neighborhoods with home prices of $100,000 or less

There were 136 neighborhoods with an A rating and with median home prices of $100,000 or less, led by the Devonshire neighborhood in the Mobile, Alabama, metro ($78,038 median price); the Park Central neighborhood in the Orlando, Florida, metro ($91,750); the East English Village neighborhood in the Detroit, Michigan, metro area ($66,750); the Cypress Shores neighborhood in the Mobile, Alabama, metro ($85,000); and the Hathaway Manor neighborhood in the St. Louis, Missouri, metro ($69,190).

Best-Neighborhoods_2

Best neighborhoods for buying rental homes

ATTOM analyzed potential rental returns for homes purchased as rentals in 10,895 neighborhoods with sufficient rental return data.

Among 2,188 neighborhoods with an A rating, there were 494 with a potential annual gross rental yield of at least 10 percent, led by the Westover neighborhood in Fayetteville, North Carolina (41.7 potential gross annual rental yield); the Terminal Park neighborhood in Sarasota, Florida (41.5 percent); the Southwest York neighborhood in York, Pennsylvania (35.8 percent); the Griffin Park neighborhood in Tampa-St. Petersburg, Florida (35.8 percent); and the Portland neighborhood in Louisville, Kentucky (33.6 percent).

Best neighborhoods for flipping homes

ATTOM also analyzed potential home flipping returns in 3,573 neighborhoods with sufficient home flipping data. There were 209 neighborhoods with an A rating and with an average gross flipping return on investment of 50 percent or more, led by the Cottage Grove Heights neighborhood in the Chicago, Illinois, metro (309.2 percent ROI); the Woodmere and Dolfield neighborhoods in the Baltimore, Maryland, metro (both with 250.0 percent ROI); the West Chesterfield neighborhood in the Chicago metro (247.8 percent ROI); and the Westside neighborhood in the Memphis, Tennessee metro (221.9 percent ROI).