America’s Hottest Zip Codes for Housing Announced

Realtor.com®  announced its third annual list of the Hottest ZIP Codes in America, which illustrates the power of millennial gravitation toward affordable suburbs with local “it” factors.

For the second year in a row, Watauga, Texas, (76148) leads the list, followed by Livonia, Michigan, (48154); Kentwood, Michigan, (49548); Medford, Mass., (02155); Littleton, Colo. (80123); Castro Valley, Calif., (94546); Colorado Springs, Colo., (80922); Overland Park, Kan., (66210); Mira Mesa, Calif. (92126), and Hilliard, Ohio (43026).

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. Homes in this year’s top 10 hottest markets sell in an average of 21 days – 50 days faster than in the rest of the country. Realtor.com users view home listings in these markets four times more often than those in the rest of the country. One ZIP code was included per metro area.

“While low inventory is a challenge, millennials are the largest generation in U.S. history and they are flexing their muscle when it comes to the housing market,” said Danielle Hale, chief economist for realtor.com. “Increasingly, the hottest housing markets are the ones that appeal to millennial preferences, and right now the standouts are relatively affordable suburbs with local ‘it’ factors such as hiking trails, great restaurants, and nightlife. With the largest cohort of millennials turning 30 in 2020, we can expect these types of areas to stay in demand in the years to come.”

Key factors heating things up in the top 10 hottest markets:

  • Relative affordability. The median price for a home in these markets is $360,000 – 1.4 times more than the national median – with prices in five of the top 10 ZIPs exceeding the national average. However, when compared to their immediate surrounding metro area, the median home listing price is lower in six of the top 10 ZIPs and when compared to the county, eight are lower.
  • Large shares of older millennials. Millennials aged 25 to 34 make up 17 percent of households in the top 10 ZIPs, compared to 15 percent nationally. Older millennial households comprise a greater share of households than their national share in eight out of the top 10 ZIPs. They also make up the largest share of mortgage originations, with 25-to-34-year-olds accounting for 36 percent of mortgages and 35-to-44-year-olds making up 30 percent.
  • High millennial ownership rates. Eight of the top 10 ZIPs have a higher home ownership rate among 25-to-34-year-olds than in their surrounding county as a whole. The average 25-to-34-year-old home ownership rate in top 10 ZIPs is 50 percent, compared to 39 percent in their respective counties and 41 percent nationally.
  • Strong job markets. The top 10 ZIP codes are located in counties with an average unemployment rate of 3.6 percent, well below the overall national unemployment rate of 4.4 percent.
  • High salaries. In nine out of the top 10 ZIPS, the median household income is higher than the national median. The average household income among the top 10 is $75,829, 1.3 times the $57,462 national median. This is true for millennial segment as well; the average household income for 25-to-34-year-olds in the top 10 is $74,635, 1.3 times the $55,871 national median.

 

Top 50 Hottest Markets in America

Rank

ZIP

Name

Realtor.com

Hotness Score

1

76148

Watauga, Texas

99.44

2

48154

Livonia, Mich.

99.36

3

49548

Grand Rapids, MI

99.19

4

02155

Medford, Mass.

99.11

5

80123

Littleton, Colo.

98.76

6

94546

Castro Valley, Calif.

98.70

7

80922

Colorado Springs, Colo.

98.53

8

66210

Overland Park, Kan.

98.38

9

92126

San Diego, Calif.

98.35

10

43026

Hilliard, Ohio

98.33

11

95758

Elk Grove, Calif.

98.03

12

83704

Boise, Idaho

97.85

13

40220

Louisville, Ky.

97.78

14

37214

Nashville, Tenn.

97.72

15

14623

Rochester, N.Y.

97.44

16

68144

Omaha, Ne.

97.10

17

46815

Fort Wayne, Ind.

96.76

18

67212

Wichita, Kan.

96.64

19

78247

San Antonio, Texas

96.25

20

99336

Kennewick, Wash.

96.15

21

02048

Mansfield, Mass.

96.02

22

27511

Cary, N.C.

95.57

23

07016

Cranford, N.J.

95.45

24

78758

Austin, Texas

95.27

25

98121

Seattle, Wash.

95.19

26

55423

Minneapolis, Minn.

95.16

27

63126

Saint Louis, Mo.

94.63

28

14150

Tonawanda, N.Y.

94.34

29

4106

South Portland, Maine

94.14

30

28273

Charlotte, N.C.

93.76

31

53129

Greendale, Wis.

93.72

32

32807

Orlando, Fla.

93.29

33

99203

Spokane, Wash.

93.19

34

85225

Chandler, Ariz.

92.89

35

20715

Bowie, Md.

92.54

36

01757

Milford, Mass.

92.42

37

97005

Beaverton, Ore.

91.92

38

03060

Nashua, N.H.

91.80

39

19341

Exton, Pa.

91.78

40

45430

Dayton, Ohio

91.66

41

46322

Highland, Ind.

91.18

42

84123

Salt Lake City, Utah

90.82

43

55807

Duluth, Minn.

90.51

44

45240

Cincinnati, Ohio

90.46

45

33624

Tampa, Fla.

90.32

46

80631

Greeley, Colo.

90.25

47

48197

Ypsilanti, Mich.

90.20

48

37034

Chapel Hill, Tenn.

89.56

49

28806

Asheville, N.C.

89.43

50

15209

Pittsburgh, Pa.

89.41

For more information about the list, visit: research.realtor.com.

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