MReport June 2022

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M REPORT | 53 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Home Value Growth Heightens in Suburbs According to a new report, the most popular market in early 2022 is Woodinville, Washington—with Burke, Virginia, and Highlands Ranch, Colorado, rounding out the top three. W oodinville, Wash- ington, is Zillow's most popular market of early 2022, leading a list of fast-growing suburbs as the most in-demand places to start off the year. As more data emerges that remote work is a driving force behind fast home value growth in the suburbs, expensive suburban mar- kets are seeing strong demand. Woodinville, located outside of Seattle, topped the list. Following close behind were Burke, Virginia, in the Washington, D.C., area; Highlands Ranch, Colorado, outside of Denver; Westchase, Florida, near Tampa; and Edmonds, Washington, also in the Seattle metro. "The most popular markets so far this year paint a picture of how remote work has changed the U.S. housing landscape," Zillow Economist Nicole Bachaud said. "Demand for suburban homes found an extra gear last summer, perhaps as buyers gained more clarity in their employers' return-to-office policies. Research suggests the rise of remote work is responsible for roughly half of home price growth during the pandemic. How many employers continue to allow this flexibility for employees to live where they choose will go a long way toward determining which markets are most in demand in the future." Especially strong home buyer interest has caused suburban home values to grow faster than home values in urban areas, a reversal of previous norms and from the first 15 months of the pandemic. Remote work is a driving force behind this shift, prompt- ing home buyers to prioritize affordability and space over a short commute. More than half of the gain in U.S. home prices since late 2019 can be attributed to remote work, according to re- search from the National Bureau of Economic Research. The suburbs that beat out all others to top Zillow's latest list of the most popular markets are seeing home values grow faster on a quarterly basis than the principal city in their metro area, indicating stronger demand. Eight of the top 10 have a typical home value higher than their nearby principal city, and seven of those have a typical home value that's more than $150,000 higher. Regionally, Havertown, Pennsylvania, outside of Philadelphia, is Zillow's most popular market in the Northeast, edging out four Boston suburbs: Billerica, Framingham, Waltham, and Arlington. In the central region, Ballwin, Missouri, near St. Louis, is joined in the top five by Grand Rapids, Michigan, and three pricey Dallas suburbs: Coppell, Plano, and Prosper. Denver suburbs dominated the mountain region, taking the top eight spots in Zillow's rankings. Zillow's Top 10 Most Popular Markets and Nearest Metros: 1. Woodinville, Washington (Seattle) 2. Burke, Virginia (Washington, D.C.) 3. Highlands Ranch, Colorado (Denver) 4. Westchase, Florida (Tampa) 5. Edmonds, Washington (Seattle) 6. Yorba Linda, California (Los Angeles) 7. Johns Creek, Georgia (Atlanta) 8. Tustin, California (Los Angeles) 9. Ballwin, Missouri (St. Louis) 10. Golden, Colorado (Denver)

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