SANTA CLARA, Calif.,
July 31, 2019 /PRNewswire/ -- The
hottest ZIP codes in America are on the move from big cities like
San Francisco and New York to quieter metros with a more
suburban feel such as Omaha, Neb.
and Goffstown, N.H., according to
realtor.com®'s 2019 hottest ZIP codes ranking released
today. In its fifth annual report, five ZIP codes in up and coming
neighborhoods made their debut on the list boosted by extremely low
home prices and even more millennial home buyers.
The 2019 hottest ZIP codes America, in rank order, are: 49505
Grand Rapids, Mich.; 68144,
Omaha, Neb.; 83704, Boise, Idaho; 66203 Shawnee, Kan.; 14609 Rochester, N.Y.; 48154 Livonia, Mich.; 02176 Melrose, Mass.; 76018 Arlington, Texas; 03045 Goffstown, N.H.; and 80916 Colorado Springs, Colo.
Homes in this year's top 10 sell in an average of 17 days, 40
days faster than the rest of the country and 20 days faster than
their respective metros, on average. Realtor.com® users
view homes in these markets 3 times more often than homes in the
rest of the country and 1.9 times more often than in their
respective metro areas, on average.
Affordability ignites even more demand in smaller, less dense
locales
As buyers continue to be priced out of big cities, demand is
sparking up in smaller, less dense markets where housing is more
affordable. Last year, the top 10 hottest ZIP codes in America
included towns on the outskirts of some of the largest, most
densely populated cities in the country such as New York and San
Francisco. But these markets rotated off the list this year
to make way for Omaha, Neb. and
Manchester, N.H. Smaller metros
from previous years such as: Boise,
Idaho; Kansas City, Mo. and
Colorado Springs, Colo. In fact,
this year's top 10 hottest markets have half of the total number of
households of the market's on last year's list and 7 percent fewer
households per square mile.
"Even though buyers are moving to smaller markets, they are
looking to retain an urban lifestyle by living closer to the city
center. This tells us that today's home buyers are trying to have
it all -- proximity to downtown, room to grow, and affordability --
and they're finding it outside of the biggest cities in the U.S.,"
said Danielle Hale, chief economist
for realtor.com®. "The average commute distance from
this year's hottest 10 ZIPs to their downtown area is 9 miles,
which is 31 percent or 4 miles closer compared to last year's top
10."
Newbie ZIPs bring new trends to the top 10
Among the top 10 hottest ZIPs in America, five are making their
debut on the list this year, including: No.1 Grand Rapids, Mich. (49505); No. 4
Shawnee, Kan. (66203); No. 5
Rochester, N.Y. (14609); No. 8
Arlington, Texas (76018); and No.
9 Goffstown, N.H. (03045).
Although some of the traditional drivers of market hotness are
represented in these areas, there are also some emerging trends of
extremely low home prices, developing local economies, and even
larger populations of millennials.
Affordability has been a key factor driving
realtor.com®'s hottest ZIP codes for the last five
years. But among 2019's new ZIPs, the trend is even more extreme.
When compared to the top 10 as a whole the average median listing
price for the five new ZIPs is 36 percent less expensive. They are
also 32 percent less expensive than both the metro and the national
median home price.
Although these areas are thriving in many ways, local economic
indicators signal these up-and-coming neighborhoods still have a
way to go. The median income of the five newbie ZIPs is
$64,000, 9 percent lower than the
median of the others on the list. But their average unemployment
rate is strong at 3.2 percent, which is 0.2 percentage points lower
than the average of the returning ZIPs, and 0.4 percentage
points lower than the national rate of 3.6 percent. The number of
households in these markets is projected to grow by 4.3 percent
this year, faster than the national rate of 1.1 percent, but not
quite as fast as expected in the returning ZIP codes, projected to
grow at a rate of 7.6 percent.
Millennials have played a critical part of market hotness for
some time, but their role is even larger in these new ZIPs. In
fact, on average, the millennial homeownership rate in these areas
is 5 percent higher than their returning counterparts and exceeds
the national rate by 13 percent.
Overall trends driving hotness in the top 10
Among this year's top 10 hottest markets in America, there are
some consistent factors driving their popularity, including: large
numbers of high earning millennials scooping up homes, relatively
affordable home prices and strong local job markets. In the top 10
ZIPs, millennials' salaries are on average, 13 percent greater than
the national millennial median income. They also make up the
greatest share of homebuyers taking on a mortgage, averaging
39 percent. Part of the appeal of these top 10 ZIPs is their
relatively affordable average home price of $272,000, well below the current national median
of $316,000. Another factor
contributing to these hot housing market is residents have money to
spend. On average, resident incomes in each of these areas are 6.5
percent higher than the national median. Additionally, jobs are
expected to grow 1.3 percent this year, exceeding the projected
national growth of 1.0 percent.
2019 Hottest ZIP Codes in America
1) 49505 - Grand
Rapids, Mich. – Western Michigan has once again taken the top
spot on realtor.com®'s hottest ZIP codes ranking,
this time with ZIP 49505. Located just north of downtown
Grand Rapids, this ZIP runs along
the Grand River and includes plenty of green space with the Kent
Country Club, and four large parks. Its strong school system, which
includes City High Middle School (GreatSchools rating of
9/10), attracts many to the family-oriented area.
Housing stats: Homes in this Grand Rapids ZIP sell in 10 days on
average, with a median listing price of $178,050, which is up 11.3 percent
year-over-year. Millennials make up the dominant buyer segment,
where they account for 48 percent of new purchase mortgages.
Millennials in this Grand Rapids ZIP make slightly less than the
national median for millennials at $58,667 and $62,280, respectively.
2) 68144 - Omaha,
Neb. – Coming in at No. 2, ZIP 68144 is centrally
located just 12 miles west of downtown Omaha, with easy access to the interstate, and
borders along Zorinsky Lake. Affordable housing and high-paying
jobs at companies like Berkshire Hathaway, Union Pacific Railroad,
and Werner Enterprises are attracting many "boomerang buyers" back
to the area after living in other more expensive parts of the
country. With a solid mix of both high-end and starter homes,
access to downtown Omaha, and a
strong school system, which includes Harvey Oaks Elementary
School (GreatSchools rating of 8/10), this area has earned its
spot as one of the hottest ZIPs in the nation.
Housing Stats: Homes in 68144 sell in 21 days on average, with a
median listing price of $238,950,
which is up 6.2 percent over last year. Millennials make up the
dominant buying segment in the area, where they account for 43
percent of new purchase mortgages. Millennials in 68144 make
significantly more than the national median for millennials at
$73,902 and $62,280, respectively.
3) 83704 Boise,
Idaho – Boise is a
vibrant, active city, with a mild four-season climate that allows
residents to enjoy the local mountains, rivers, and lakes
year-round, while also establishing itself as a new tech hotspot.
ZIP code 83704 sits on Boise's
western edge and runs along Route 20. As more Californians seek
lower housing costs, many are buying homes in Idaho where the sunny climate and local tech
employers, such as Micron Technology, are strong draws.
Boise is no stranger to
realtor.com®'s Hottest ZIP Codes list, this ZIP was No.
6 in 2018.
Housing Stats: Homes in 83704 sell in an average of 14 days,
with a median listing price of $289,950, which is up 5.5 percent year-over-year.
The dominant buyer segment in the area is slightly older at 35- to
44-years-old. However, buyers aged 25- to 34-years old still make
up 28 percent of new purchase mortgages. Millennials in 83704 earn
significantly less than the national median for millennials at
$50,581 and $63,174, respectively.
4) 66203 Shawnee, Kan. –
Sitting southwest of downtown Kansas
City, Mo., on the Kansas
side, is ZIP 66203 a quintessential Midwestern suburb known
as "Old Shawnee." This is 66203's first appearance on
the hottest markets, and it offers a walkable downtown with local
shops and restaurants as well as affordable home prices.
Kansas City has grown in
popularity over the years due to its alluring downtown that houses
museums, dining, shopping, and extensive nightlife, and 66203 is an
affordable alternative to last year's No. 8 ZIP in Overland Park with even easier access to the
city.
Housing Stats: Homes in 66203 sell in an average of 13 days and
have a median listing price of $220,050, which is up 16.4 percent
year-over-year. Millennials make up the dominant buyer segment in
this area, where they account for 43 percent of new purchase
mortgages. Millennials in 66203 earn slightly less than the
national median for millennials at $61,582 and $62,280, respectively.
5) 14609 - Rochester,
N.Y. – Nestled along the southern shore of
Lake Ontario and split in half by
the Genesee River is the pictorial city of Rochester, which is home to ZIP 14609 -- a
first timer to the list. As a booming area for both medical and
education industries, 14609 draws many young professionals with its
tree-lined streets, high walkability, and access to nightlife.
Rochester Regional Health and the University
of Rochester are two of the metro area's largest employers,
but Rochester is also home to the
headquarters for Wegmans Food Markets, which was ranked No. 3 on
Fortune's annual "Best Companies to Work For."
Housing Stats: Homes in 14609 sell in 17 days on average and
have a median listing price of $125,050, which is up 13.7 percent
year-over-year. Millennials make up the dominant buyer segment in
the area where they account for 43 percent of new purchase
mortgages. However, millennials make significantly less than the
national median millennial at $44,438
and $62,280, respectively.
6) 48154 - Livonia,
Mich. – A western suburb of the Motor City,
Livonia combines the best parts of
suburban living with close proximity to the great attractions of
Detroit. ZIP 48154 offers an easy
20 mile commute to downtown destinations such as the Detroit
Institute of Art and the historic Eastern Market. Livonia also is equally close to many of the
major employment centers scattered throughout the broader metro
area, such as the headquarters of Ford Motor Company in
Dearborn, Mich.
Housing Stats: Homes in 48154 sell in an average of 17 days and
have a median listing price of $254,950, which is up 6.2 percent year-over-year.
Millennials are the dominant buyer segment in the area where they
make up 36 percent of new purchase mortgages. Millennials in this
Livonia ZIP make significantly more than the national median for
millennials at $96,855 and
$62,280, respectively.
7) 02176 - Melrose, Mass.
– Located 10 miles north of Boston is the quaint gas-lamp lined city of
Melrose. Boston's abundance of universities and
colleges feed the area's demand for high-paying jobs, especially in
pharmaceutical and medical industries where Hallmark Health System
and Melrose-Wakefield Hospital are two of the area's largest
employers. A strong school system, which includes Hoover
Elementary School (GreatSchools rating of 7/10), draws many to
the area, but the ZIP of 02176 is beyond most first-time home
buyers' budgets, so many turn to renting until they are able to
afford purchasing a home. Melrose
is no stranger to realtor.com®'s Hottest ZIP Codes list,
it was No. 7 in 2016.
Housing stats: Homes in Melrose
sell in an average of 18 days and have a median listing price of
$629,050, down 1.7 percent
year-over-year. The dominant buyer segment remains millennials who
account for 43 percent of new purchase mortgages. Millennials in
this ZIP have a median income of $98,803, which is $36,523 higher than the national median
millennial income of $62,280.
8) 76018 - Arlington,
Texas – Sitting cozy between Dallas and Fort
Worth is the thriving city of Arlington, home to this
year's No. 8 hottest ZIP, 76018. This is 76018's first time making
it onto realtor.com®'s hottest ZIPs list. ZIP 76018 is
seven miles from Globe Life Park - home of the Texas Rangers
baseball team, as well as six miles from AT&T Stadium - home of
the Dallas Cowboys football team, the most valuable sports
franchise in the world. Arlington ISD and the University of Texas at Arlington are two of the
area's largest employers. However, ZIP 76018 is only 19 miles from
Fort Worth and 25 miles from
Dallas, offering a plethora of
employment options to those willing to commute.
Housing Stats: Homes in this Arlington ZIP sell in 20 days on
average and have a median listing price of $215,050, which is up 7.5 percent year-over-year.
Millennials make up the dominant buyer segment in this area where
they account for 34 percent of new purchase mortgages. Millennials
in Arlington also make slightly
more than the national median for millennials at $64,023 and $62,280, respectively.
9) 03045 - Goffstown,
N.H. – Nestled an hour and a half north of
Boston and just west of
Manchester, N.H. is the historic,
tree-lined town of Goffstown which
is home to ZIP 03045. This is 03045's first time making it onto
realtor.com®'s hottest ZIP codes list. The area offers
residents a close-knit community, complete with parks and
outdoors space, and a strong school system which
includes Goffstown High School (GreatSchools rating of
7/10). Affordable homes with access to a walkable downtown that is
lined with historic brick buildings that house many of the town's
restaurants and shops, make it a quintessential New England
town.
Housing Stats: Homes in this Goffstown ZIP sell in 22 days on
average and have a median listing price of $325,050, up 4.9 percent year-over-year.
Millennials make up the dominant buyer segment in this area where
they account for 43 percent of new purchase mortgages. Millennials
in Goffstown earn significantly
more than the national median for millenials at $105,449 and $62,280, respectively.
10) 80916 - Colorado Springs,
Colo. – Located 70 miles south of Denver on the eastern side of the Rocky
Mountains, lies the thriving outdoor-centric city of Colorado Springs with ZIP 80916 sitting on the
southeastern portion of the city. This area draws a diverse
nature-loving crowd with its affordable housing compared to its
sister-city to the north, Denver. Colorado Springs is replete with local
breweries and tasting rooms as well as many boutique restaurants
that cater to the area's healthy living lifestyle. Major employers
for the area include the United States Air
Force Academy, Fort Carson,
and nearby Peterson Air Force Base.
Housing Stats: Homes in this Colorado Springs ZIP sell in an
average of 21 days and have a median listing price of $245,050, which is up 2.5 percent year-over-year.
Millennials make up the dominant buyer segment in the area, where
they account for 34 percent of new purchase mortgages. Millennials
in Colorado Springs make
significantly less than the national median for millennials at
$47,819 and $62,280, respectively.
About realtor.com®
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SOURCE realtor.com