SANTA CLARA, Calif.,
Sept. 26, 2018 /PRNewswire/ --
Realtor.com®, the Home of Home Search℠, today announced
its fourth annual list of 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).
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?:
- Homes are relatively affordable. The median price for a
home in these markets is $358,000,
and top markets are almost all more affordable than their
surrounding area -- only 43085 (Worthington, Ohio) and 07043 (Upper Montclair, N.J.) are exceptions. In
addition, five of the top 10 ZIPs have median listing prices that
are lower than the U.S. overall and eight have prices that are
lower than their respective metro and county areas.
- Residents are employed at higher rates and tend to earn
more. Household incomes in eight of the top 10 ZIPs are greater
than the national median of $61,000.
In total, the average household income in the top 10 ZIPs is
$83,000, 1.4 times the national rate.
In addition, the 10 ZIP codes are located in counties with an
average unemployment rate of 3.6 percent, which is 30 basis points
lower than the U.S. unemployment rate of 3.9 percent. A total of
83,000 jobs will be created this year in these markets combined*,
which indicates a growth rate of 2.2 percent, significantly above
the national growth rate of 1.8 percent.
- Millennials, in particular, are doing well. In eight out
of the top 10 ZIPs, the median household income for 25 to 34 year
olds is 1.3 times higher than the national median, $78,000 versus $60,000, respectively.
- Millennials hold the lion share of purchases. Mortgage
originations in nine of the top 10 counties of these top 10 ZIPs
are strongly dominated by millennials (25 to 34 year olds), which
have a greater share of mortgage originations (34 percent) than the
next largest group (35 to 44 year olds) with 31 percent.
- Buyers have their credit buttoned up. The homebuyers in
the counties where these ZIPs are located have an average FICO
score of 729, higher than the national average of 720.
Market Highlights – Top 10 ZIP Codes
- 49508 – Kentwood, Mich.
– Although neighboring ZIP code 49548 was ranked No. 3 on the list
last year, this is 49508's first appearance. Located just 15 miles
southeast of Grand Rapids and 30
miles from beautiful Lake
Michigan, is the quiet suburban town of Kentwood. The area is known for its tree lined
streets, close knit community, affordable homes, and quick commute
to Grand Rapids, where Spectrum
Health, Meijer, and Mercy General Health Partners are the major
employers. Young families are drawn to this affordable neighborhood
because of its strong schools, such as Discovery Elementary, which
has GreatSchools rating of 8/10.
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.
- 80922 – Colorado Springs,
Colo. – Located 60 miles south of Denver on the eastern side of the Rocky
Mountains, lies the thriving outdoor centric city of Colorado Springs. 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 such as the Goat Patch Brewing Co. and
Trail's End self-pouring taproom, as well as many boutique
restaurants that cater to the area's popular healthy living
lifestyle. With areas such as Garden of the Gods and Pike's Peak, there are always trails and parks
to get outside and explore. Major employers in the area include the
United States Air Force at its Academy and other area bases, as
well as UC Memorial Hospital North.
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.
- 76148 Watauga, Texas –
Located just 10 miles up on the northern edge of Fort Worth is the family-friendly suburb of
Watauga. This area caters to young
families that want easy access to all the amenities and
entertainment that Fort Worth has
to offer, while giving budget-savvy buyers the most bang for their
buck. Younger families are also drawn to Watauga for its strong schools, such as Grace
E. Hardeman Elementary, which has a GreatSchools rating of 8/10.
This ZIP also ranks highest in the state in the Human Rights
Campaign's Municipal Equality Index (MEI), which scores the ways
cities support the LGBT people who live and work there. Major
employers in the area include American Airlines, Texas Health
Resources, and Lockheed Martin Aeronautics company.
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.
- 94546 Castro Valley,
Calif. – Situated 15 miles south of Oakland is the East
Bay neighborhood of Castro
Valley. This quiet neighborhood is known for its relative
affordability with homes costing 5 percent less than the rest of
the county and 17 percent less than the broader metro area. It is
also known for its excellent school system, such as Proctor
Elementary, which has a GreatSchools rating of 9/10. The relaxed
area caters to young professionals working in San Francisco, Oakland, and Berkeley because of its BART (Bay Area Rapid
Transport) access. Castro Valley
exudes local pride with activities such as the Fall Festival in
September, Barks & Boos around Halloween, Light Parade in
November, and Castro Valley Street Eats with food trucks from
spring to autumn.
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.
- 01960 Peabody, Mass. –
Located just inland of Salem and
15 miles northeast of Boston, this
small but vibrant community is known for its rich industrial
history. Peabody features great
public schools, such as John E. McCarthy
School which has a GreatSchools rating of 8/10, and
Brooksby Farm – a 200-acre working
farm. The area is also headquarters to Analogic Corporation and
Tradewin Consulting Services, which are some of the largest
employers in Peabody.
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.
- 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. Plus, the Snake
River Valley allows for a rich soil that provides distinctive,
award-winning vintage wines from local vineyards, while the local
brewery scene has been growing. Boise was also just named one of Money
Magazine's Best Places to Live. Ada
County ranks among the top five most popular markets for Bay
Area Californians searching for homes out-of-state. As more
Californians are moving away from San
Francisco, Silicon Valley, and California's wine country, many are seeking
homes in Idaho where the sunny
climate and local tech employers, such as Micron Technology, are
strong attractors.
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.
- 43085 Worthington, Ohio
– Nestled between two highways 12 miles directly north of
Columbus, sits the close-knit
community of Worthington. The area
attracts young and growing families that want homes in a quiet
neighborhood without giving up their access to downtown
Columbus, Ohio. Being so close to
The Ohio State University, Worthington is an affluent neighborhood, known
for its particularly strong schools, such as Evening Street
Elementary and Phoenix Middle School, both of which have a
GreatSchools rating of 9/10. Additionally, the area has a strong
sense of community with its Farmers Market, Craft Arts Crawl, as
well as its many dining and boutique shopping options.
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.
- 66210 Overland Park,
Kan. – Sitting just 11 miles south of Kansas City on the Kansas side of the border, is the thriving
neighborhood of Overland Park.
Though it is a suburb of Kansas
City, it is also the second most populous city in the state.
The area boasts a plethora of outdoor options including the
Overland Park Arboretum and Botanical Gardens, as well as many
hiking trails. Overland Park was
just named one of Money Magazine's Best Places to Live. The area is
great for both young and growing families as it offers affordable
homes, 34 percent less expensive than Johnson County, Kansas as a whole.
Overland Park is also home to an
excellent school system that includes Harmony Middle School and Lakewood Elementary
School, both of which have a GreatSchools rating of 10/10.
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.
- 14624 Rochester, N.Y. –
Sitting on the southern shore of Lake
Ontario is the diverse community of Rochester. The area is a close-knit community
known for its plethora of beautiful parks and water features, and
has been nicknamed "Flower City USA" because of the many lilacs throughout its
parks. Rochester's workforce,
which was previously known for its print and film services because
of Kodak's former headquarters, has shifted toward health systems
and higher education, with Strong Memorial Hospital and the
University of Rochester being two of
the area's largest employers. Along with the revitalization of
downtown, the area has seen an influx in millennial home buyers
purchasing in the Rochester
downtown area and surrounding suburbs over the recent years.
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.
- 07043 Upper Montclair,
N.J. – Sitting about 14 miles west of the Hudson River
and nestled at the foot of the First Watchung Mountain, is the
vibrant community of Upper
Montclair. The area caters to those looking to raise a
family in a quiet neighborhood, while still having easy commutes to
New York City and Newark, N.J. The area is a small, wealthy
township where the median income of $176,182, is nearly triple the U.S. median income
of $61,045. This thriving arts
community is also home to the Montclair Art Museum, Montclair State University, global cuisine, and a
funky downtown.
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
|
For more information about the list, please visit:
https://www.realtor.com/research/hottest-zip-codes-2018/.
To watch a video about realtor.com's hottest markets index,
click here.
About realtor.com®
Realtor.com®, The Home of Home Search℠, offers an
extensive inventory of for-sale and rental listings, and access to
information, tools and professional expertise that help people move
confidently through every step of their home journey. It pioneered
the world of digital real estate 20 years ago, and today is the
trusted resource for home buyers, sellers and dreamers by making
all things home simple, efficient and enjoyable.
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 Contact:
Realtor.com®
Lexie Holbert
lexie.puckett@move.com
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