As Kelly Clarkson sings in her popular hit song, “What doesn’t kill you makes you stronger.” This line in the song is proving true in several cities in the United States, including in the two Chicago area cities Alsip and Cicero. Even through hard times, these two cities have begun to rebound and are two of the top 15 best down-and-out neighborhoods to buy a home now.
RealtyTrac, an ATTOM Data Solutions company, analyzed the housing market and neighborhood data from 3,561 U.S. zip codes, equating to more than 124 million people.
The factors to consider in determining a down-and-out neighborhood rebounding was:
- Construction loans
- Home flips
- Percent of homes underwater
- School scores
- Millennial share of population
To be considered for the Top 35 Best Bad Neighborhoods to Buy a Home, zip codes had to have:
- A population greater than 2,500
a. Millennials had to make up for at least 25 percent of the total population
- Increase in overall population from 2013 to 2014
- An increase in construction loans over the past 12 months
- An average home flipping gross return of at least 60 percent
- Its highest scoring elementary school to be below the state average at 15 percent
The results showed that the housing markets in both Alsip and Cicero were on the rebound. In 2015, Alsip, ranked No. 15 in the 35 best down-and-out neighborhoods to buy a home, saw $80,750 in flipping gross profit and 139 percent flipping gross ROI; Cicero, ranked No.6 with $101,000 in flipping gross profit and 104 percent flipping gross ROI.
With the increase in construction loans and the share of millennial populations in these areas, it is obvious that development and growth is happening. People are seeing the potential, and the cities are seeing positive results because of it. Chicago and cities in the metro area are on the rise, and now is the time to make the move to these performing cities.
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