Affordability isn't the only priority for U.S.
homebuyers, according to
Realtor.com®'s ninth annual Hottest
ZIP Codes report; Proximity to cities is key as many companies call
workers back to the office
SANTA
CLARA, Calif., Aug. 24,
2023 /PRNewswire/ -- For the first time in five
years, the suburbs of five major metropolitan areas – Boston, New
York, Chicago, Detroit and St.
Louis – are represented on the annual
Realtor.com® Hottest ZIP Codes Report released today,
marking a renewed interest in commutable homes as much of the
country's workforce returns to in-person work. Americans who have
been shopping for a home in 2023, despite limited inventory and
high mortgage rates that remain in the 6-7% range, are flocking to
areas that are more affordable relative to the rest of the country,
less expensive than their nearby metro area, or provide better
value, offering more space at a lower price.
Located exclusively in the Midwest and the Northeast, each of
this year's top 10 Hottest ZIP codes in America is attracting
buyers with homes that are either priced at or below the U.S.
median, or are larger in size than the U.S. average. Additionally,
homes listed within the Hottest ZIPs received an average of 3.6
more views per listing than in the rest of the country, and sold
one month faster than average in 2023.
The 2023 Hottest ZIP Codes in America, in rank order, are:
- 43230, Gahanna, Ohio
- 06489, Southington, Conn.
- 07450, Ridgewood, N.J.
- 01810, Andover, Mass.
- 18064, Nazareth, Pa.
- 46322, Highland, Ind.
- 48183, Trenton, Mich.
- 06851, Norwalk, Conn.
- 14534, Pittsford, N.Y.
- 63021, Ballwin, Mo.
"As many companies continue to call employees back to the
office, we're seeing a surge in home shoppers who are seeking a
desirable combination of cost and convenience within commuting
distance of major metropolitan areas," said Danielle Hale, Chief Economist for Realtor.com®.
"In addition to affordable markets, this year's list also features
some higher priced areas close to large urban cores, which will
likely appeal to buyers who are concerned with finding the right
mix of size and amenities within reach of a nearby city
center."
No. 1 Hottest ZIP: Gahanna,
Ohio
This year's Hottest ZIP Code is Gahanna, Ohio (43230), which continues the
legacy of Columbus, Ohio markets
appearing on the Hottest ZIP codes list. The greater Columbus area offers home buyers the amenities
and quality-of-life advantages of a larger town, but at a lower
price. It's home to The Ohio State
University, the Short North Arts District as well as a
captivating food scene. Homes in this ZIP code were priced 12.7%
below the national median in June – and with more than a quarter of
its population aged 25-34, it's favorable for young renters and
buyers alike.
Suburban space, closer commutes draw home shoppers
Looking more closely at this year's hottest ZIPs, No. 3 on the
list, Ridgewood, N.J. (07450), is
a high-priced suburb of New York
City that offers an idyllic setting with typical listings
that are more than double the size of those in the NYC metro and is just a one-hour commute from
Manhattan. Shoppers are willing to
pay up for these amenities, and homes in the area have a
price-per-square-foot that is 7.9% higher than the metro's average.
Residents of this year's No. 4 ZIP on the list, Andover, Mass. (01810), a suburb of
Boston, can commute to the city in
under an hour, and the area also boasts larger homes priced 25%
lower per square foot than Boston
listings. The typical home in No. 9, Pittsford, N.Y. (14534), was 29.3% larger than
the median-sized home in the surrounding Rochester metro, less than 30 minutes from the
city center by car, and despite the premium to live in this
desirable village, listing viewership was more than 30% higher than
the surrounding metro. Finally, Ballwin,
Mo. (63021), at No. 10 on the list, is similar to these
Northeast locales in that listing prices in the area tend to be
higher than the metro average, but homes for sale were upwards of
30% larger than the metro's median home size.
Big-city dwellers are driving demand
Six of this year's Hottest ZIP codes – generally those found
near big-cities – drew the majority of their property views from
within their metro area, suggesting that in many areas, buyers are
looking to move around locally. Additionally, those areas seeing
significant interest from other locations are typically seeing it
come from big-city shoppers. Reflecting this trend, No. 1 ranked
Gahanna, Ohio (43230) captured the
largest share of out-of-metro viewership among the Midwest metros,
drawing 13.1% of its viewership from the New York City area in the second quarter of
2023. In fact, New York City was
the top out-of-market viewer for seven of the 10 hottest zips.
Size matters: nearly all Hottest ZIPs feature more
space
In seven out of 10 of this year's Hottest ZIP codes, the typical
home is larger than the average home in the surrounding metro area.
Among the more expensive locations on the list, the typical
household size is also larger, indicating that home shoppers in
places such as Ridgewood, N.J.
(07450), Andover, Mass. (01810)
and Pittsford, N.Y. (14534) may be
shopping for more space to accommodate a larger family. This is
particularly true in Ridgewood,
N.J. (07450), the most expensive ZIP on this year's list,
where the typical household is 19.7% larger than the U.S. average
of two-and-a-half people per household.
Homebuyers want affordability
Recent near-record high mortgage rates and still-inflated
listing prices continue to create affordability challenges for
homebuyers, resulting in buyer demand in areas that boast
affordability. Seven of the top 10 Hottest ZIP codes offer home
prices that are similar or lower than the U.S. median listing price
or the prices in their surrounding metropolitan area. Notably, the
Midwest saw a post-pandemic boom, as traditionally popular metros
became unaffordable and many home buyers looked for value in new
locations. Four major Midwest markets on this year's list are close
to city centers, including Columbus,
Ohio (43230 No. 1 Gahanna), Chicago, Ill. (46322 No. 6 Highland, Indiana), Detroit, Mich. (48183 No. 7 Trenton, Michigan) and St. Louis, Mo. (63021 No. 10 Ballwin, Missouri). These markets offer
homebuyers prices that are 24.7% lower than the U.S. median, as
well as a strong local economy and employment rates below the
national average.
From hot to not: West, South left out
Only the Northeast and Midwest are represented in this year's
ranking, the first time in the list's history that only two regions
are included. The South and West regions are not represented among
this year's rankings, leaving out regions of the country that have
typically contributed several markets to the list. Back in 2017 the
South and West accounted for more than half of the Hottest ZIPs,
and in both 2018 and 2019, these regions accounted for at least
half of the top 10. High prices in the West and high price growth
during the pandemic in the South are likely contributing to the
shift.
Among the top 10, buyers need to be prepared and move
fast
Despite the overall housing market starting to cool, with the
average home in the U.S. spending about 45 days on the market,
homes in this year's Hottest ZIP codes spent just 10 to 25 days on
the market and saw three times more visitors per property on
Realtor.com® in June. With inventory falling 22.4% in
these ZIP codes compared to a 7.1% increase nationally, those
looking to buy in these markets are facing tough competition.
"Shoppers in this year's Hottest ZIP codes should cope by being
prepared – pre-approved and zeroed in on their budget and down
payment – and really focused on must haves versus nice-to-haves so
they can be ready to act quickly when they see the right home hit
the market," said Realtor.com® Economic Research Analyst
Hannah Jones. The high price of
financing a home purchase this year and still-steep competition
meant successful buyers in the hottest markets also came with
exceptional qualifications, with an average credit score of 754,
surpassing the U.S. average of 740. Additionally, they made higher
than average down payments, reaching 17.2% compared to the national
average of 12.3% in the first half of 2023.
One way to stay ahead of the competition in America's hottest
ZIPs is to set a price alert on Realtor.com®. Simply
enter your search criteria and save the search to get real-time or
daily notifications when homes matching your search criteria hit
the market. Additionally, if you are searching for homes in other
hot areas, be on the lookout for Realtor.com® Hot Market
badges on neighborhoods and home listings for insights about how
fast homes are selling and how many more views they get compared to
others in the area and in the U.S.
2023 Hottest ZIP Codes in America – Top 50 Housing
Metrics
Rank
|
Zip
Code
|
Zip
Name
|
Metro
Area
|
Viewers
per
property vs
US
|
Median
Days on
Market
|
June 2023
Median
Listing Price
|
1
|
43230
|
Gahanna,
Ohio
|
Columbus, OH
|
4.5
|
13
|
$389,000
|
2
|
06489
|
Southington,
Connecticut
|
Hartford-East
Hartford-Middletown, CT
|
5.7
|
18
|
$410,000
|
3
|
07450
|
Ridgewood, New
Jersey
|
New York-Newark-Jersey
City, NY-NJ-PA
|
3.3
|
18
|
$918,000
|
4
|
01810
|
Andover,
Massachusetts
|
Boston-Cambridge-Newton, MA-NH
|
3.3
|
19
|
$1,117,000
|
5
|
18064
|
Nazareth,
Pennsylvania
|
Allentown-Bethlehem-Easton, PA-NJ
|
3.4
|
18
|
$446,000
|
6
|
46322
|
Highland,
Indiana
|
Chicago-Naperville-Elgin, IL-IN-WI
|
2.9
|
19
|
$289,000
|
7
|
48183
|
Trenton,
Michigan
|
Detroit-Warren-Dearborn, MI
|
3.1
|
20
|
$280,000
|
8
|
06851
|
Norwalk,
Connecticut
|
Bridgeport-Stamford-Norwalk, CT
|
2.9
|
23
|
$749,000
|
9
|
14534
|
Pittsford, New
York
|
Rochester,
NY
|
3.5
|
21
|
$571,000
|
10
|
63021
|
Ballwin,
Missouri
|
St. Louis,
MO-IL
|
3.1
|
23
|
$381,000
|
11
|
06790
|
Torrington,
Connecticut
|
Torrington,
CT
|
3.0
|
25
|
$310,000
|
12
|
40241
|
Louisville,
Kentucky
|
Louisville/Jefferson
County, KY-IN
|
2.5
|
22
|
$412,000
|
13
|
29414
|
Charleston, South
Carolina
|
Charleston-North
Charleston, SC
|
2.4
|
22
|
$559,000
|
14
|
29212
|
Columbia, South
Carolina
|
Columbia, SC
|
2.8
|
26
|
$340,000
|
15
|
45424
|
Dayton, Ohio
|
Dayton-Kettering,
OH
|
2.6
|
23
|
$287,000
|
16
|
53005
|
Brookfield,
Wisconsin
|
Milwaukee-Waukesha,
WI
|
3.1
|
27
|
$472,000
|
17
|
47905
|
Lafayette,
Indiana
|
Lafayette-West
Lafayette, IN
|
2.9
|
27
|
$419,000
|
18
|
43537
|
Maumee, Ohio
|
Toledo, OH
|
3.1
|
29
|
$307,000
|
19
|
08080
|
Sewell, New
Jersey
|
Philadelphia-Camden-Wilmington,
PA-NJ-DE-MD
|
2.9
|
26
|
$390,000
|
20
|
02703
|
Attleboro,
Massachusetts
|
Providence-Warwick,
RI-MA
|
2.6
|
25
|
$449,000
|
21
|
01085
|
Westfield,
Massachusetts
|
Springfield,
MA
|
3.1
|
28
|
$392,000
|
22
|
01545
|
Shrewsbury,
Massachusetts
|
Worcester,
MA-CT
|
2.7
|
25
|
$727,000
|
23
|
06708
|
Waterbury,
Connecticut
|
New Haven-Milford,
CT
|
2.0
|
21
|
$301,000
|
24
|
93309
|
Bakersfield,
California
|
Bakersfield,
CA
|
2.0
|
23
|
$340,000
|
25
|
59102
|
Billings,
Montana
|
Billings, MT
|
2.4
|
30
|
$410,000
|
26
|
75072
|
McKinney,
Texas
|
Dallas-Fort
Worth-Arlington, TX
|
2.1
|
26
|
$632,000
|
27
|
43028
|
Howard, Ohio
|
Mount Vernon,
OH
|
2.6
|
29
|
$475,000
|
28
|
13760
|
Endicott, New
York
|
Binghamton,
NY
|
2.5
|
29
|
$273,000
|
29
|
44805
|
Ashland,
Ohio
|
Ashland, OH
|
2.4
|
29
|
$217,000
|
30
|
48640
|
Midland,
Michigan
|
Midland, MI
|
3.5
|
32
|
$285,000
|
31
|
44903
|
Mansfield,
Ohio
|
Mansfield,
OH
|
2.6
|
30
|
$185,000
|
32
|
65202
|
Columbia,
Missouri
|
Columbia, MO
|
1.9
|
23
|
$310,000
|
33
|
37415
|
Chattanooga,
Tennessee
|
Chattanooga,
TN-GA
|
2.1
|
28
|
$450,000
|
34
|
04074
|
Scarborough,
Maine
|
Portland-South
Portland, ME
|
2.9
|
33
|
$700,000
|
35
|
65109
|
Jefferson City,
Missouri
|
Jefferson City,
MO
|
2.4
|
30
|
$342,000
|
36
|
14850
|
Ithaca, New
York
|
Ithaca, NY
|
2.5
|
30
|
$585,000
|
37
|
44691
|
Wooster,
Ohio
|
Wooster, OH
|
2.5
|
32
|
$247,000
|
38
|
08520
|
Hightstown, New
Jersey
|
Trenton-Princeton,
NJ
|
1.8
|
25
|
$491,000
|
39
|
45601
|
Chillicothe,
Ohio
|
Chillicothe,
OH
|
2.9
|
34
|
$270,000
|
40
|
80920
|
Colorado Springs,
Colorado
|
Colorado Springs,
CO
|
1.8
|
25
|
$533,000
|
41
|
65804
|
Springfield,
Missouri
|
Springfield,
MO
|
2.1
|
31
|
$358,000
|
42
|
28277
|
Charlotte, North
Carolina
|
Charlotte-Concord-Gastonia, NC-SC
|
2.0
|
30
|
$623,000
|
43
|
44256
|
Medina, Ohio
|
Cleveland-Elyria,
OH
|
3.8
|
35
|
$442,000
|
44
|
94550
|
Livermore,
California
|
San
Francisco-Oakland-Berkeley, CA
|
1.8
|
27
|
$1,410,000
|
45
|
35226
|
Birmingham,
Alabama
|
Birmingham-Hoover,
AL
|
1.9
|
28
|
$537,000
|
46
|
54703
|
Eau Claire,
Wisconsin
|
Eau Claire,
WI
|
2.8
|
33
|
$327,000
|
47
|
61107
|
Rockford,
Illinois
|
Rockford, IL
|
2.9
|
30
|
$185,000
|
48
|
45042
|
Middletown,
Ohio
|
Cincinnati,
OH-KY-IN
|
2.1
|
29
|
$265,000
|
49
|
23454
|
Virginia Beach,
Virginia
|
Virginia
Beach-Norfolk-Newport News, VA-NC
|
1.6
|
22
|
$420,000
|
50
|
55125
|
Saint Paul,
Minnesota
|
Minneapolis-St.
Paul-Bloomington, MN-WI
|
1.9
|
28
|
$480,000
|
Methodology
Realtor.com®'s Hottest ZIP Code rankings are based on
an algorithm that takes into account two aspects of the housing
market: 1) market demand, as measured by unique viewers per
property on Realtor.com®, and 2) the pace of the market
as measured by the number of days a listing remains active on
Realtor.com®. The hottest areas are those that have high
demand from buyers, in other words, lots of unique viewers per each
property, and fast-selling homes, an indicator of limited supply.
Market Hotness rankings based on Realtor.com® listing
data from January to June 2023. The
list of top ZIP codes is limited to one ZIP code per metropolitan
area. Descriptive statistics in this write-up refer to June 2023 data unless otherwise noted.
About Realtor.com®
Realtor.com® is an open real estate marketplace built
for everyone. Realtor.com® pioneered the world of
digital real estate more than 25 years ago. Today, through its
website and mobile apps, Realtor.com® is a trusted guide
for consumers, empowering more people to find their way home by
breaking down barriers, helping them make the right connections,
and creating confidence through expert insights and guidance. For
professionals, Realtor.com® is a trusted partner for
business growth, offering consumer connections and branding
solutions that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq: NWS,
NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information,
visit Realtor.com®.
Media Contact
press@move.com
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