The downtown area of Los Angeles, which borders the district long known as "Skid Row," may have been one of the last places where upwardly mobile buyers would have thought of property shopping a scant decade or two ago.
This neighborhood gentrified the most from 2000 to 2016, according to a recent study from rental listings website RENTCafé.
But, as is traditionally the case with large-scale urban gentrification, the area's transformation has proved to be a double-edged sword: Buyers who got in early enough have earned significant home equity, but some longtime residents have been displaced.
RENTCafé's rankings are based on the change in home values, household income, and the number of residents with a bachelor’s degree or higher in the nation’s 11,000 fastest-growing ZIP codes from 2000 to 2016.
The data analyzed came from the U.S. Census Bureau.
Only ZIP codes with more than 2,000 occupied housing units in both the years 2000 and 2016 were included.
The 90014 ZIP, in downtown L.A., bears some similarities to what Manhattan's grittier Soho neighborhood was like in the 1980s—before it became an ultratrendy and wildly expensive place to live.
“Tech companies are moving here because it’s more affordable than Silicon Valley," says local real estate agent Tatiana Tensen of Sotheby’s International Realty.
New York City's East Harlem ZIP code of 10039, in Manhattan, rounded out the top five. "Public housing residents in gentrifying neighborhoods in New York [City] enjoyed higher earnings and scored higher on standardized tests."