SANTA CLARA, Calif.,
Sept. 22, 2016 /PRNewswire/
-- Millennials are a key factor turning up the heat in
America's hottest housing markets, says a new report from
realtor.com®. Fueled by large populations of millennials attracted
to affordable prices and strong job markets, top ZIP codes, led by
Watuaga, Texas (76148) and Pleasant Hill, Calif. (94523), are
rising above 32,000 others to make up realtor.com®'s hottest ZIP
codes of 2016. Realtor.com® is a leading online real estate
destination operated by News Corp [NASDAQ: NWS, NWSA]; [ASX: NWS,
NWSLV] subsidiary Move, Inc.
The top ten ZIP codes include: 76148 (Watauga, Texas) a suburb of Fort Worth; 94523 (Pleasant Hill, Calif.); 80233 (Northglenn, Colo.) part of the Denver metro; 80916 (Colorado Springs, Colo.); 78247 (San Antonio); 94954 (Petaluma, Calif.); 02176 (Melrose, Mass.); 63126 (Crestwood, Mo.); 97222 (Milwaukie, Ore.) a suburb of Portland; and 92104 (North Park, Calif.) a
town in San Diego. The complete
ranking and market details are available at
research.realtor.com.
Realtor.com® ranked the list based on the time it takes
properties to sell and how frequently homes are viewed in each ZIP
code. Homes in this year's top 20 hottest markets sell in an
average of 25 days – just over three weeks – 53 days faster than
the rest of the country. Realtor.com® users view homes in these
markets almost four times more often than homes in the rest of the
country.
The 2016 hottest ZIP codes report underscores the role that
large populations of millennials, the ability to purchase within
expensive housing markets, as well as strong job markets and steady
salaries play in the interest shown for these highly competitive
locales.
"Homes for sale in this year's hottest ZIP codes are selling
almost as quickly as they hit the market," said Jonathan Smoke, chief economist for
realtor.com®. "While millennials are usually a significant presence
in most markets, their sheer size and buying power have made them a
force to be reckoned with in these hot ZIP codes and given them the
power to shift supply and demand dynamics."
Larger than normal millennial populations empowered by
economic growth
Millennials, who are the largest generation in U.S. history,
represent an even greater share of the population in most of the
top 10 hottest zips. In ZIPs such as Northglenn, Colo. (80233), Colorado Springs, Colo. (80916), and North
Park, Calif. (92104) the 25-34 age millennial population is beating
the U.S. average by 1.8, 1.4, and 1.2 times,
respectively.
Although first time buyers usually have more limited incomes
than other buyers, millennials in these areas are more likely to
earn in excess of six figures. In the top 10 hottest markets, the
share of millennials earning more than $100,000 is 1.8 times higher than the U.S.
overall. This is especially true for Pleasant Hill, Calif. (94523), Petaluma, Calif. (94954), and Melrose, Mass. (02176) where the share of
millennials earnings $100,000 is 2.1,
2.2, and 2 times, respectively, as great as the national share.
Strong job markets drive household growth
The top 10 hottest ZIP codes are also located in counties with
robust employment opportunities. Collectively the top 10 hottest
ZIPs are seeing average job growth of 2.3 percent this year, which
is 35 percent stronger than the national rate. They have an average
unemployment rate of 3.8 percent, which is more than 100 basis
points lower than the U.S. overall. Adams County, Colo. –
home to No. 3 on the list, Northglenn – has the lowest unemployment rate
at 2.9 percent.
These hot areas are also magnets for people relocating,
expanding their families and moving out on their own – also known
as population and household growth. Over the last five years, the
top 10 hottest ZIP codes have seen an average of 6 percent growth
in households, which is 20 percent stronger than the national
average. Northglenn (80233) and
Colorado Springs (80916) have
seen growth at more than twice the national average.
Opportunity to purchase into more expensive housing
markets
One of the largest drivers in the top 10 hottest
markets is home prices. The median price for a home in the top
10 hottest markets is $331,000, which is 36
percent higher than the national median of $243,000. While that may seem expensive, these
areas represent less expensive neighborhoods that give buyers a
chance to live in or close to expensive housing markets.
When compared to their surrounding areas, these ZIPs offer
prices that are 19 percent and 22 percent less expensive than
their surrounding counties and metro areas, respectively. This is
especially true for ZIP codes such as Watauga, Texas (76148), Colorado Springs, Colo. (80916), and
Milwaukie, Ore. (97222) where
prices are 48, 47, and 35 percent lower their respective
counties.
Market Highlights – Top 10 Hottest ZIP
Codes
1. 76148 – Watauga,
Texas – An inner suburb of Fort Worth, Watauga is a youthful and relatively dense
community, with easy access to a great restaurant and craft brewery
scene, cultural offerings like the Modern Art Museum of
Fort Worth – plus two football
powerhouses nearby, the Dallas Cowboys and Texas Christian University. The dominant buyer
segment in Watauga is millennials,
and including the many millennials in ZIP 76148 that are already
homeowners, the age group makes up 65 percent of the total
population of owners in the area. Homes in Watauga sell in 17 days,
almost 30 percent faster than last year, with a median price
listing of $137,000, up 16.4 percent
over last year, and the area has experienced 3 percent job growth,
plus 28,000 jobs, over last year.
2. 94523 – Pleasant Hill,
Calif. – Located in San
Francisco's East Bay, Pleasant
Hill boasts a beautiful downtown area with parks and highly
ranked public schools, making it highly desirable for home buyers
and a central location for commuters. The dominant
buying group in this ZIP is 35 to 44 year olds, which make up 31
percent of buyers, but millennials are a close second holding 26
percent of mortgages. Forty-two percent of millennials in this area
make over $100,000, which is two
times the norm for millennials in the U.S. Homes in Pleasant
Hill sell in 19 days, 30 percent faster than last year, with a
median list price of $630,000, up
almost 4 percent for the year. The area is experiencing 2 percent
job growth, which will translate into 7,200 jobs created.
3. 80233 – Northglenn,
Colo. – ZIP code 80233, which covers parts of
Northglenn and Thornton, Colo., outside Denver, is a perfect locale for families who
enjoy an active lifestyle as its home to parts of the Greenway
Trail System and 26 parks, and is located in one of the most
distinguished school districts in Colorado. Thirty-six
percent of mortgages in Northglenn
are made up of millennials and they are the dominant home buyer in
the area. Homes in Northglenn sell in just over a week – 11
days, which is 20, 29, and 67 days faster than the county, metro
and the U.S., respectively. The median list price in Northglenn is $278,000, up 16.5 percent from last year, and the
area has experienced 3 percent job growth, plus 7,900 jobs, over
last year.
4. 80916 – Colorado Springs,
Colo. – ZIP code 80916 is an outdoor enthusiast's
dream, with mountains, canyons, springs, and within an hour and a
half drive of popular Rocky Mountain attractions like Pike's Peak. The city has a cost of living 7
percent below the national average. Not only are millennials the
dominant buyer segment in the area, they make up 27 percent of the
household population in this ZIP – that's 1.4 times more than the
surrounding county and 1.8 times more than the U.S. average. Homes
in Colorado Springs sell 17 in days, more than 50 percent faster
than last year, with a median list price of $178,000, up 12.1 percent year over year, and the
area has experienced 2 percent job growth, adding 7,200 jobs.
5. 78247 – San Antonio
– ZIP 78247 has moved up a notch from No. 6 last year and
is one of the most affordable big cities in the U.S., with a cost
of living well below the national average; it's home to the nearly
1,000-acre McAllister Park and
popular disc golf course at McClain Park. Millennials are the
dominant segment of home buyers in the area making up 36 percent of
mortgages. Additionally, many millennials in San Antonio are already homeowners and have a
homeownership rate of 61 percent, which is 1.6 times and 1.5 times
greater than the county and U.S., respectively. Homes in San
Antonio sell in 28 days, with a median listing price of
$184,000, up 5.8 percent year over
year. The area has experienced 3 percent job growth, over last year
and currently has an unemployment rate of 3.6 percent and trending
higher.
6. 94954 – Petaluma,
Calif. − Known as the southern gateway to
Sonoma County and with an old
traditional downtown and small-town feel, Petaluma is within a short distance to both
San Francisco and Marin County. Buyers between 35 and 44 years
old make up 27 percent of mortgages in the area, and millennials
are not far behind with a mortgage share of 25 percent. Homes in
Petaluma sell in 27 days, 9.2 percent faster than last year, with a
median list price for the area at $596,000, up 5.7 percent year over year. The area
has experienced 2 percent job growth, plus 4,000 jobs, over last
year.
7. 02176 – Melrose,
Mass. – Ranked as the hottest ZIP code in 2015,
Melrose fell six rankings this
year to the seventh spot as the market normalized from supply
beginning to catch up with demand. Melrose is less than 10 miles from
Boston, and has become a magnet
for young professionals given its easy access to the city,
Cambridge and Logan International
Airport and its public transit. Millennials are the dominant group
of home buyers in Melrose and make
up 36 percent of mortgage shares, with a homeownership rate 1.3
times higher than the surrounding county and very similar to the
U.S. ownership rate. Homes in Melrose sell in 29 days, which is 3.5
percent faster than last year, with a median list price of
$462,000, which is up 13.1 percent
from last year, and the area has experienced 1 percent job
growth.
8. 63126 – Crestwood,
Mo. – ZIP 63126 is the most inexpensive community that
feeds into Lindbergh Schools, a district that has received national
honors and several state awards. It also is home to 120 acres of
parks, the Sappington House Historical Site and close to the
historic Grant's Farm. Despite the fact that 67 percent of
millennials are already homeowners in Crestwood, they are still the dominant buying
segment, accounting for 38 percent of mortgages. Homes in Crestwood
sell in 30 days, 21 percent faster than last year with a median
list price of $183,000, up 9.8
percent year over year and the area has experienced 2 percent job
growth, plus 9,000 jobs.
9. 97222 – Milwaukie,
Ore. – A small town situated on Portland's southern edge, Milwaukie offers convenient access to
Portland via the highly rated
TriMet transit system and waterfront boating, walks along the
marina, and a popular farmer's market. Millennials are the dominant
buyer segment in Milwaukie making
up 28 percent of the mortgages being purchased in the area and
accounting for 14 percent of the households. Homes in Milwaukie
sell in 24 days, 7.3 percent slower than last year, with a median
list price of $309,000, up 12.2
percent year over year. The area has experienced 4 percent job
growth.
10. 92104 – North Park, Calif. – ZIP 92104
covers San Diego's North
Park neighborhood and nearby Burlingame and Altadena, and is known for its American
Craftsman-style homes, walkability, trendy eateries, art galleries,
and microbreweries as well as Balboa Park and San Diego Zoo.
Millennials are the leading segment of home buyers in ZIP 92104,
making up 32 percent of mortgages in the area, with 26 percent of
the households between the ages of 25 and 34 years old. Homes in
the area sell in just 22 days, 24 percent faster than last year
with a median list price of $497,000,
up 17.1 percent year over year, and the area has experienced 1
percent job growth.
Top 50 Hottest ZIP Codes
Rank
|
ZIP
|
Name
|
|
Rank
|
ZIP
|
Name
|
1.
|
76148
|
Watauga, Texas (part
of broader Forth Worth area)
|
|
26.
|
83705
|
Boise, ID
|
2.
|
94523
|
Pleasant Hill,
Calif.
|
|
27.
|
68144
|
Omaha, NE
|
3.
|
80233
|
Northglenn, Colo.
(part of broader Denver area)
|
|
28.
|
27511
|
Cary, NC
|
4.
|
80916
|
Colorado Springs,
Colo.
|
|
29.
|
90230
|
Culver City,
CA
|
5.
|
78247
|
San
Antonio
|
|
30.
|
93906
|
Salinas,
CA
|
6.
|
94954
|
Petaluma,
Calif.
|
|
31.
|
59102
|
Billings,
Mont.
|
7.
|
02176
|
Melrose,
Mass.
|
|
32.
|
93004
|
Ventura,
Calif.
|
8.
|
63126
|
Crestwood,
Mo.
|
|
33.
|
67209
|
Wichita,
Kan.
|
9.
|
97222
|
Milwaukie, Ore. (part
of broader Portland area)
|
|
34.
|
80603
|
Brighton,
Colo.
|
10.
|
92104
|
North Park, Calif.
(part of broader San Diego area)
|
|
35.
|
95062
|
Santa Cruz,
Calif.
|
11.
|
40242
|
Louisville,
Ky.
|
|
36.
|
32707
|
Casselberry,
Fla.
|
12.
|
66204
|
Overland Park,
Kan.
|
|
37.
|
95368
|
Salida,
Calif.
|
13.
|
48072
|
Berkley,
Mich.
|
|
38.
|
93720
|
Fresno,
Calif
|
14.
|
95123
|
San Jose,
Calif.
|
|
39.
|
50010
|
Ames, Iowa
|
15.
|
37214
|
Nashville,
Tenn.
|
|
40.
|
14150
|
Tonawanda,
N.Y.
|
16.
|
78749
|
Austin,
Texas
|
|
41.
|
28273
|
Charlotte,
N.C.
|
17.
|
94585
|
Suisun City,
Calif.
|
|
42.
|
30269
|
Peachtree City,
Ga.
|
18.
|
14625
|
Rochester,
N.Y.
|
|
43.
|
55423
|
Minneapolis
|
19.
|
49508
|
Kentwood,
Mich.
|
|
44.
|
53005
|
Brookfield,
Wis.
|
20.
|
58103
|
Fargo,
N.D.
|
|
45.
|
23226
|
Richmond,
Va.
|
21.
|
46804
|
Fort Wayne,
Ind.
|
|
46.
|
66617
|
Topeka, KS
|
22.
|
95678
|
Roseville,
CA
|
|
47.
|
75495
|
Van Alstyne,
Texas
|
23.
|
43214
|
Columbus,
Ohio
|
|
48.
|
33624
|
Tampa,
Fla.
|
24.
|
95376
|
Tracy,
Calif.
|
|
49.
|
07066
|
Clark,
N.J.
|
25.
|
98105
|
Seattle
|
|
50.
|
80501
|
Longmont,
Colo.
|
About realtor.com®
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license from the National Association
of REALTORS.® For more information,
visit realtor.com®.
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