A new report out today announced the Hottest ZIP Codes in America. The new list shows high-income millennials are helping to drive a nearly 10 percent increase in how fast homes are sold in the most popular areas of the country, which spans emerging suburban areas near Silicon Valley, throughout the Midwest, and on the East Coast.
As millennials get older, move out on their own and buy homes, they are driving demand for homes in smaller, more suburban locales. Some of the new areas making this year’s list include: No 1. Kentwood, Mich. (49508); No. 5 Peabody, Mass. (01960); No. 6 Boise, Idaho (83704); No. 9 Rochester, N.Y. (14624); and No. 10 Upper Montclair, N.J. (07043), according to the Realtor.com report.
Back by popular demand, the following areas are among the ZIP codes returning to the list this year: Colorado Springs, Colo. (80922) moved to No. 2 from No. 7 in 2017; Watauga, Texas (76148) moved to No. 3 from No. 1 in 2017 and 2016; Castro Valley, Calif. (94546) moved to No. 4 from No. 6 in 2017; Worthington, Ohio (43085) moved to No. 7 from No. 2 in 2015; and Overland Park, Kan. (66210) was ranked No. 8 this year and in 2017.
“When it comes to choosing a home of their own, millennials are looking for opportunity and they’re finding it in affordable suburbs,” said Danielle Hale, chief economist for realtor.com®. “These hot housing markets are attracting the attention of hard-working, high-earning 25-to-34-year-olds who are drawn by their relative affordability, strong local economies, and outdoor and cultural amenities.”
Realtor.com®‘s 2018 Top 10 Hottest ZIP Codes
#1: Kentwood, Mich. 49508 |
#6: Boise, Idaho 83704 |
#2: Colorado Springs, Colo. 80922 |
#7: Worthington, Ohio 43085 |
#3: Watauga, Texas 76148 |
#8: Overland Park, Kan. 66210 |
#4: Castro Valley, Calif. 94546 |
#9: Rochester, N.Y. 14624 |
#5: Peabody, Mass. 01960 |
#10 Upper Montclair, N.J. 07043 |
Realtor.com® analyzed 32,000 ZIP codes based on the time it takes properties to sell and how frequently homes are viewed in each ZIP code on realtor.com®. One ZIP code was included per metro area.
How hot are these ZIP codes?
Homes in this year’s top 10 hottest markets sell in an average of 20 days, 46 days faster than the rest of the country, 25 days faster than their respective metro areas, and 18 days faster than their respective counties.
Realtor.com® users view homes in these markets four times more often than homes in the rest of the country, 2.3 times more often than their respective metro areas, and 1.9 times more often than their respective counties. The average views per property for these 10 ZIPs on realtor.com® are up 14 percent compared to last year. In addition, home list prices in nine of the 10 markets are appreciating on a yearly basis, and in some cases they’re doing so rapidly. Five of the 10 ZIPs saw double-digit growth in asking prices — faster than the national rate of 8.4 percent.
What’s making these ZIP codes hot this year?:
Market Highlights – Top 10 ZIP Codes
Key housing stats: Average home listing views in ZIP 49508 are up 4 percent over last year, with homes receiving nearly four times more views than those in the rest of the country. Homes in Kentwood sell in 14 days, 52 days faster than the rest of the U.S., with a median list price of $193,168, up 9.5 percent over last year. A pocket of relative affordability, prices in 49508 are 33 percent lower than the surrounding county. Kent County is expected to add 8,000 jobs this year, an increase of 2.3 percent.
Housing stats: The number of households in this ZIP grew by 21 percent from 2010 to 2018, with a home ownership rate of 80 percent among all age groups and 68 percent among millennials. Reflecting the high concentration of military service members in the area, 40 percent of new mortgages in El Paso County are guaranteed by the U.S. Department of Veterans Affairs. Homes in 80922 sell in 15 days, about 19 days faster than the rest of El Paso County, with a median list price of $297,811, up 9.7 percent over last year. El Paso County is expected to add 8,300 jobs this year, an increase of 2.6 percent.
Housing stats: The dominant buyer segment in Watauga is millennials, who hold 33 percent of new purchase mortgages in the ZIP and have an 65 percent home ownership rate, compared to 42 percent in Tarrant County. Millennials in 76148 also earn slightly more than the median household overall. Homes in Watauga sell in 15 days, 3 percent faster than last year, with a median list price of $183,576, up 16.2 percent over last year. Tarrant County is expected to add 28,400 jobs this year, an increase of 2.8 percent.
Housing stats: Millennials make up 38 percent of the new purchase mortgage share in ZIP 94546, while the dominant buyer group skews slightly older at 35-44 years of age. Homes in Castro Valley sell in just 16 days, about 50 days faster than the rest of the country. Listings in this ZIP have a median list price of $784,238, up 7.6 percent over last year. While this is notably above the U.S. median of $287,036, it is significantly more affordable than nearby San Francisco priced at $944,000 (up 7.3 percent) and Silicon Valley at $1.2 million (up 25.9 percent). While Alameda County is expected to add only 3,700 jobs this year, an increase of 0.5 percent, the unemployment rate of 3.0 percent is well below the U.S. level of 3.9 percent.
Housing stats: The dominant buyer segment in ZIP 01960 is 35-44-year-olds, while millennials (25-34-years-old) hold 32 percent of recently purchased mortgages in the area. With a median household income of $73,312, millennials in 01960 have a higher income than the typical household. Homes in Peabody sell in 20 days, 46 days more quickly than the rest of the country, with a median list price of $424,685, up 8.4 percent compared to last year. Essex County is expected to add 9,000 jobs this year, an increase of 2.2 percent.
Housing stats: Millennials make up 27 percent of the new mortgage share in Ada County, while the dominant buyer group skews slightly older at 35-44 years of age. Homes in 83704 sell in 23 days, about 43 days faster than the rest of the country. Listings this year have a median list price of $251,324, up 16.2 percent over last year. Ada County is expected to add 6,400 jobs this year, an increase of about 2.8 percent, which is extraordinary considering the already low unemployment rate of 2.5 percent.
Housing stats: The number of households in this ZIP grew by 9 percent from 2010 to 2018, with an above-average home ownership rate of 74 percent among all age groups and 52 percent among millennials. Homes in Worthington sell in 25 days, about 11 days faster than the rest of the county and 41 days faster than the U.S., with a median list price of $291,305, up 0.8 percent over last year. Franklin County is expected to add 13,500 jobs this year, an increase of 2 percent.
Housing stats: Millennials continue to be the dominant buying group in the area, holding 36 percent of recently purchased mortgages in Johnson County and high-credit buyers are the norm with an average FICO of 737 compared with 720 for the U.S. as a whole. Homes in Overland Park sell in 24 days, one day slower than last year but still 42 days faster than the U.S., with a median list price of $261,927, up 14 percent over last year. While Johnson County is expected to add just 3,600 jobs this year, an increase of 1.1 percent, this is notable given the low 2.9 percent unemployment rate.
Housing stats: Homes in this ZIP are relatively affordable, priced 28 and 27 percent less than the county and metro, respectively, which have kept buyer interest high and growing. Home listing views for this ZIP have increased 51 percent over last year. Household incomes in 14624 are higher than typical U.S. incomes and homes are priced 54 percent below the typical U.S. listing, creating a great opportunity for buyers. This explains the high home ownership rates – 80 percent for all households and 64 percent for millennial households. Millennials make up the largest share of recently purchased mortgages in Monroe County at 33 percent. Homes typically sell within 22 days in this ZIP, about 29 percent faster than last year and 44 days faster than the U.S., with a median list price of $131,964. Housing interest in this ZIP has remained strong despite a roughly average growth in jobs of 0.6 percent over last year.
Housing stats: Homes in ZIP 07043 sell in 22 days, about 23 percent faster than last year, with a median list price of $762,350, up 6 percent over last year. Homeownership rates in this ZIP are high for all households (83 percent) and millennials (51 percent). The dominant buyer segment in Essex County skews slightly older (35-44 year olds), while millennials hold 31 percent of new purchase mortgages. Recent job growth in the local area has been limited at 0.1 percent, but the labor market is powered by its larger neighbors — New York and Newark, N.J.
*Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics Forecasted
Realtor.com’s 2018 Top 50 Hottest ZIP codes |
|||
Rank |
ZIP Code |
ZIP Name |
Hotness Score |
1 |
49508 |
Kentwood, Mich |
99.4 |
2 |
80922 |
Colorado Springs, Colo. |
99.3 |
3 |
76148 |
Watauga, Texas |
99.3 |
4 |
94546 |
Castro Valley, Calif. |
99.2 |
5 |
01960 |
Peabody, Mass. |
99.1 |
6 |
83704 |
Boise, Idaho |
98.5 |
7 |
43085 |
Worthington, Ohio |
98.2 |
8 |
66210 |
Overland Park, Kan. |
98.2 |
9 |
14624 |
Rochester, N.Y. |
98.1 |
10 |
07043 |
Upper Montclair, N.J. |
97.9 |
11 |
55434 |
Minneapolis, Minn. |
97.9 |
12 |
48220 |
Ferndale, Mich. |
97.6 |
13 |
95376 |
Tracy, Calif. |
97.6 |
14 |
68106 |
Omaha, Neb. |
97.5 |
15 |
84123 |
Salt Lake City, Utah |
97.5 |
16 |
46815 |
Fort Wayne, Ind. |
97.5 |
17 |
93710 |
Fresno, Calif. |
97.2 |
18 |
95678 |
Roseville, Calif. |
97.1 |
19 |
46322 |
Highland, Ind. |
96.9 |
20 |
92129 |
San Diego, Calif. |
96.6 |
21 |
37214 |
Nashville, Tenn. |
96.4 |
22 |
28262 |
Charlotte, N.C. |
96.3 |
23 |
40220 |
Louisville, Ky. |
95.8 |
24 |
02048 |
Mansfield, Mass. |
95.7 |
25 |
45240 |
Cincinnati, Ohio |
95.6 |
26 |
85224 |
Chandler, Ariz. |
95.3 |
27 |
95687 |
Vacaville, Calif. |
95.3 |
28 |
91354 |
Valencia, Calif. |
94.9 |
29 |
99205 |
Spokane, Wash. |
94.8 |
30 |
53129 |
Greendale, Wis. |
94.8 |
31 |
14226 |
Buffalo, N.Y. |
94.8 |
32 |
66046 |
Lawrence, Kan. |
94.6 |
33 |
79705 |
Midland, Texas |
94.6 |
34 |
27604 |
Raleigh, N.C. |
94.4 |
35 |
78250 |
San Antonio, Texas |
94.4 |
36 |
94928 |
Rohnert Park, Calif. |
94.34 |
37 |
63126 |
Saint Louis, Mo. |
94.4 |
38 |
20716 |
Bowie, Md. |
94.3 |
39 |
97402 |
Eugene, Ore. |
94.0 |
40 |
01757 |
Milford, Mass. |
93.9 |
41 |
45440 |
Dayton, Ohio |
93.8 |
42 |
97267 |
Portland, Ore. |
93.8 |
43 |
19154 |
Philadelphia, Pa. |
93.6 |
44 |
80631 |
Greeley, Colo. |
93.4 |
45 |
99336 |
Kennewick, Wash. |
93.4 |
46 |
27704 |
Durham, N.C. |
93.1 |
47 |
04092 |
Westbrook, Maine |
93.0 |
48 |
80021 |
Broomfield, Colo. |
93.0 |
49 |
92591 |
Temecula, Calif. |
92.7 |
50 |
78749 |
Austin, Texas |
92.7 |
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