SANTA CLARA, Calif.,
Aug. 18, 2020 /PRNewswire/
-- East Coast markets flexed their dominance while West Coast
markets failed to make the cut in realtor.com®'s 2020
Hottest ZIP Codes released today. In its sixth annual report,
millennials continue to migrate away from the nation's urban
centers in search of affordable housing and space to raise a
family.
The 2020 hottest ZIP codes in America, in rank order, are: 80911
Colorado Springs, Colo.; 43068
Reynoldsburg, Ohio; 14617
Rochester, N.Y.; 02176
Melrose, Mass.; 04106 South Portland, Maine; 66614 Topeka, Kan.; 03051 Hudson, N.H.; 01602 Worcester, Mass.; 22152 Springfield, Va.; and 27604 Raleigh, N.C.
Among this year's top 10 hottest markets in America, a few
consistent factors are driving their popularity, including: easy
access to both downtown amenities and outdoor space, relative
affordability with a strong local economy, and a large number of
millennial homebuyers.
Homes in this year's hottest ZIPs sell in an average of 18 days,
51 days faster than the rest of the country and 27 days faster than
their respective metros, on average. Realtor.com® users
view homes in these markets 4.3 times more often than homes in the
rest of the country and 2.2 times more often than in their
respective metro areas, on average. These housing markets are also
29% less dense (households per sq. mile) than the nation's top 50
largest metros.
"This year's hottest ZIP codes lean noticeably toward the East
Coast. Nothing west of the Rocky Mountains made the list,"
according to realtor.com® Chief Economist Danielle Hale. "But when you view the list
through the lens of affordability, the picture becomes more clear.
As the largest generation in U.S. history continues to advance
toward life milestones -- settling down, marriage, parenthood --
the need for space and affordable housing outshines the bright
lights in expensive urban areas like New
York or Los Angeles. While
we've seen millennials moving in this direction for a few years
now, all the extra time at home spent trying to work, learn, and
play in response to the pandemic has heightened these preferences,
and put the trend toward extra space and affordability on
fast-forward."
East Coast dominates hottest ZIPs
Half of this year's
hottest ZIPs reside in the Northeast, including Rochester, Melrose, South
Portland, Hudson, and
Worcester. Demand for these
markets was driven by a lack of affordability in nearby larger
urban cores such as New York and
Boston where prices have
sky-rocketed and increased space is a luxury many can't afford.
Further south, but still along the East Coast, are Springfield and Raleigh.
Although many of these markets were hit by the COVID-19 pandemic
first, they were also some of the first to recover, which allowed
buyers to come out in force to make up for lost time during the
typical spring home buying season. Pent up demand has helped
catapult these markets to the top of the list where homes are
flying off the market 3.4 times faster than the average home.
Millennials attracted by affordability
As
millennials continue to seek more bang for their buck, demand is
sparking up in smaller, less dense markets where housing is more
affordable and being a millennial homeowner is more than just a
pipe dream. In fact, the average millennial homeownership rate in
this year's hottest ZIPs is 53%, compared to 43% for the rest of
the country. In part, this is because millennials are thriving in
these areas. The average household income for millennials in the
hottest ZIPs is $82,011, 27% greater
than the national median of $64,670.
Millennials in these markets aren't only doing well compared to
millennials in other areas, they are doing well compared to other
generations as well, including Baby Boomers. In each of the 10
hottest ZIPs, millennials make up the greatest share of mortgage
originations. The average share of originations for millennials is
38% in the hottest ZIPs, compared to 27% for 35 to 44 year
olds.
2020 Hottest ZIP Codes in America
1) 80911, Colorado Springs,
Colo. -- ZIP 80911 is located on the southern edge
of Colorado Springs and about 1.5
hours from Denver. The area is
known for its great weather with over 300 days of sunshine a year,
easy access to the outdoors such as Garden of the Gods Park, and
vibrant downtown including a robust art scene. The area is also
home to the brand new United States Olympic & Paralympic
Museum, which just opened in July. This area offers residents a
great quality of life including affordable homes, especially
compared to nearby Denver, and
strong schools such as Martin Luther King Jr Elementary School
(GreatSchools rating 8/10). Last year, ZIP 80916, also located in
Colorado Springs, was ranked No.
10 overall.
Housing Stats: Homes in ZIP 80911 spend an average of 13 days on
market, 20 days less than the Colorado
Springs metro on a whole and 58 days less than the national
median. The median listing price is $287,000, up 6.5% year-over-year, but 39% lower
than the metro and 13% lower than the national median.
Seventy-seven percent of residents in ZIP 80911 are homeowners and
millennial homeownership is 62%.
2) 43068, Reynoldsburg, Ohio
-- ZIP 43068 is located less than a 30-minute drive to the
east of Columbus, Ohio. The area
attracts young and growing families with its quiet suburban feel
while still having easy access to downtown Columbus and all it has to offer. The area
boasts a strong school system including Reynoldsburg High School,
which is rated a 9/10 by GreatSchools. Additionally, with its close
proximity to The Ohio State University,
the area keeps a youthful vibe with lots to do, all within a short
drive. For those not wanting to head into Columbus, Reynoldsburg offers residents plenty of dining
and shopping choices in its revitalized downtown. Seventy percent
of residents live within one mile of downtown Main Street.
Housing Stats: Homes in ZIP 43068 spend an average of 17 days on
market, 28 days less than the Columbus metro and 52 days less than U.S. The
median priced home is $204,000, 37%
less than the metro and 38% less than the national median.
Fifty-six percent of residents in this ZIP are homeowners and
millennial homeownership is 38%.
3) 14617 Rochester, N.Y.
-- ZIP 14617 is located along the Genesee River and
southern shore of Lake Ontario.
The area's massive revitalization, especially along the riverfront,
has boosted its popularity with young millennials who want to take
advantage of downtown's amenities including boutique shopping and
great restaurants. Rochester is
New York's third largest metro
area and includes a blend of history and innovation. The area is
also drawing young families with its strong school system including
Iroquois Middle School (GreatSchools rating 8/10). Rochester is no stranger to
realtor.com®'s Hottest ZIPs list, last year ZIP 1460
ranked No. 5.
Housing stats: Homes in ZIP 14617 sell in an average of 18 days,
26 days faster than the Rochester
metro as a whole and 51 days faster than the national median. The
median listing price is $162,000, up
16.6% year-over-year, but 35% lower than the metro and 51% lower
than the national median. Eighty percent of residents in this ZIP
are homeowners and millennial homeownership is 82%.
4) 02176 Melrose, Mass.
-- ZIP 02176 is located just 10 miles north of Boston. The area boasts a historic downtown,
desirable school system which includes Horace Mann Elementary
School (GreatSchools rating 9/10) and easy access to public
transportation. The town attracts many young families who are
looking for more space but still want to enjoy a quick commute to
Boston. Locals enjoy boating and
stand-up paddle boarding on nearby Spot Pond, the downtown with its
boutique shops and restaurants and easy access to green space
including the Fells Reservation with great hiking trails.
Melrose is a veteran on the
Hottest ZIPs list, it ranked No. 7 in 2019.
Housing stats: Homes in Melrose
sell in an average of 19 days, 26 days faster than the metro and 50
days faster than the national median. The median listing price is
$644,000, 2% higher than the metro
and 95% higher than the national median. Sixty-three percent of
residents in this ZIP are homeowners and millennial homeownership
is 46%.
5) 04106 South Portland,
Maine -- ZIP 04106 is located on scenic
Casco Bay and is part of
South Portland. It offers a
slightly more affordable option compared to the city of
Portland, while still being close
to downtown and its world-class restaurants. South Portland is a short drive from Portland
Head, Maine's oldest and the
country's most-photographed lighthouse. They don't call it
"vacationland" for nothing -- South
Portland also boasts beautiful beaches, miles of rocky
coastline, friendly atmosphere and the ability to walk almost
anywhere. The community attracts a lot of families and people
looking to escape bigger cities like Boston and New
York.
Housing stats: Homes in ZIP 04106 spend an average of 21 days on
the market, seven days more than last year, but 38 days less than
the Portland metro overall. The
median list price is $377,000 up 4.2%
year-over-year. Asking prices are 9% lower than the metro overall,
but 14% higher than the U.S. median. Fifty seven percent of
residents in this ZIP are homeowners and millennial homeownership
rate is 36%.
6) 66614 Topeka, Kan.
-- ZIP 66614 is located on the western side of
Topeka, the state capital of
Kansas. The area is known for the
landmark U.S. Supreme Court case Brown v. Board of Education that
declared segregation in public schools to be unconstitutional.
While government, healthcare and education are some of the ZIP's
largest employers, Topeka is home
to a number of manufacturing and distribution centers, including
Target, Frito-Lay Inc, Mars Chocolate and Goodyear Tire. In
particular, ZIP 66614 is attracting both move up and first-time
home buyers with its affordability and close proximity to the
area's new shopping and entertainment as well as easy access to
Kansas City that is within an
hour's drive.
Housing stats: Homes in ZIP 66614 sell in 19 days on average, 19
days faster than the metro and 50 days faster than the national
median. The median listing price is $184,000, 14% more than the metro, but 44% lower
than the national median. Sixty-two percent of residents in the ZIP
are homeowners and millennial homeownership is 45%.
7) 03051 Hudson, N.H. --
ZIP 03051 is located in Hudson,
N.H., less than an hour north of Boston. Many families looking to escape the
busy Boston area head just over
the border to the quiet area. Known as "tax-free" New Hampshire, locals enjoy a lower cost of
living with no state income or sales tax. Nestled along the
Merrimack River, Hudson offers
lots of space with easy access to major freeways that lead to the
lakes region, skiing or the seacoast. Visitors and locals with a
taste for adrenaline enjoy checking out the local indoor skydiving
and surfing facility, as well as outdoor activities like hiking,
biking and snowmobiling.
Housing stats: Homes in ZIP 03051 sell in 22 days on average, 22
days faster than the metro and 46 days faster than the national
median. The median listing price is $350,000, 12% lower than metro as a whole.
Seventy-eight percent of residents in this ZIP are homeowners and
millennial homeownership is 33%.
8) 01602 Worcester, Mass.
-- ZIP code 01602 is located on the western side of
Worcester, just an hour outside of
Boston. It's known for its
historic homes, culturally diverse population and highly rated
schools, such as Midland Street and West Tatnuck, both rated
8/10 by GreatSchools. Worcester State University is located in the
heart of the ZIP and is one of the largest employers in the area,
along with Becker College and
Worcester Polytechnic Institute.
Worcester is a hot spot for
families and retirees looking for three or four bedroom homes, but
increasing home prices have pushed it out of reach for many first
time home buyers.
Housing stats: Homes in Worcester spend an average 21 days on market,
31 days less than the metro as a whole and 48 days less than the
national median. The median listing price is $318,000, 14% lower than metro as a whole and 4%
lower than the national median. Sixty-three percent of residents in
this ZIP are homeowners and millennial homeownership is 50%.
9) 22152 Springfield, Va.
-- ZIP 22152 is located just inland of the Potomac River,
while offering easy access for those working in and around
Fort Belvoir, Pentagon City,
Arlington, Alexandria, Va., D.C., and National
Landing, the home of the new Amazon headquarters. This ZIP offers a
mix of townhomes and single-family homes that provide options for
both first-time and move-up buyers as well as considerable green
space with Pohick Creek Stream Valley Park to the east and Lake
Accotink Park to the north. The highly rated West Springfield High
School (GreatSchools rating of 8/10), recently redeveloped
Springfield Town Center and close proximity to Burke Town Center
and Kingstowne are big draws for
buyers to the area.
Housing stats: Homes in ZIP 22152 sell in an average of seven
days, 32 days faster than the metro area and 62 days faster than
the national median. The median listing price is $553,000, 8% higher than the rest of the metro
and 68% higher than the national median. Eighty percent of
residents in this ZIP are homeowners and millennial homeownership
is 66%.
10) 27604 Raleigh, N.C.
-- ZIP 27604 is located on the north side of Raleigh and reaches all the way into downtown.
The area boasts a high quality of living due to its affordability,
and that helps draw many buyers from more expensive cities.
Raleigh offers its residents all
the amenities that come with a large city, but with a small town
vibe and plenty of Southern hospitality. Buyers looking to move to
the area will have to pledge their allegiance to one of the many
incredible local basketball programs that include Duke University, North
Carolina State University, and the University of North Carolina at Chapel Hill.
Housing stats: Homes in this ZIP sell in an average of 25 days,
32 days faster than the metro as a whole and 44 days faster than
the national median. The median listing price is $273,000, 27% lower than the metro and 17% lower
than the national median. Fifty-four percent of residents in this
ZIP are homeowners and millennial homeownership is 42%.
Methodology
Realtor.com® analyzed 20,000
ZIP codes based on the time it takes properties to sell and how
frequently homes are viewed in each ZIP code from
April-June 20, 2020. Eligible ZIP
codes had at least 13 active listings each month to calculate a
Hotness ranking. Limited to one ZIP code per metropolitan area.
About realtor.com®
Realtor.com®
makes buying, selling and living in homes easier and more rewarding
for everyone. Realtor.com® pioneered the world of
digital real estate 20 years ago, and today through its website and
mobile apps is a trusted source for the information, tools and
professional expertise that help people move confidently through
every step of their home journey. Using proprietary data science
and machine learning
technology, realtor.com® pairs buyers and
sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For
professionals, realtor.com® is a trusted
provider of 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. under a perpetual license from the National
Association of REALTORS®. For more information,
visit realtor.com®.
Media Contacts:
Cody Horvat,
cody.horvat@move.com
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SOURCE realtor.com