While buyers weigh many factors when it comes to purchasing a home, in 2017, Realtor.com released its first Hottest ZIP Codes Report. This year, 43230 in Gahanna, Ohio, became the top-ranked ZIP code for the second year in a row. The Midwest and the Northeast are home to all of this year’s hottest ZIP codes, according to the 2024 report that was just published. These top markets draw buyers who are seeking a balance between bargain and desirability.
“While we’ve seen big changes in the housing market, such as a growing number of homes for sale, this year’s hottest ZIP codes in America show common factors are driving interest in these highly competitive areas,” said Danielle Hale, Chief Economist at Realtor.com. “Although mortgage rate relief is starting to materialize, this year’s hottest ZIPs reflect the focus on affordability that home shoppers have had over the last few years in the face of high housing costs. Concentrated in larger metros across the Northeast and Midwest, these top 10 ZIPs attracted highly qualified home buyers seeking more space without relinquishing proximity to urban amenities.”
Key Findings:
- Located in the ever-popular Columbus metro area, ZIP 43230 in Gahanna, Ohio, is this year’s hottest zip, taking the crown for the second year in a row.
- This year’s hottest zips offer buyers value in the Midwest and the Northeast, with three and seven metros representing the regions, respectively.
- Homes in the hottest zips saw 3.7 times the page views per property on average and homes sold more than a month faster compared to the typical U.S. home in the first half of 2024.
- Home shoppers in large metro areas are contributing significantly to viewership in the hottest zips. Buyers in these zips also tend to earn more and have a higher credit score than the U.S. average. Moreover, these zips attract older buyers who are well-equipped to face a competitive housing market.
Gahanna topped the list for the previous two years. The Columbus region provides prospective homeowners with the conveniences and benefits of a larger town’s quality of life, but at a more affordable price. In the first half of the year, the average price of a home in this ZIP code was 11.0% less than the metro average, and it was 19.4% less than the national median. Shopping in the New York City metro area was drawn to ZIP 43230 (Gahanna, Ohio) because to its affordable lifestyle, even though over half of the viewers of the listings were from within the metro.
The 2024 Hottest ZIP Codes in America, in rank order, are:
- 43230 Gahanna, Ohio*
- 63021 Ballwin, MO*
- 01970 Salem, MS*
- 07920 Basking Ridge, NJ*
- 14609 Rochester, NY*
- 08054 Mount Laurel, NJ
- 01453 Leominster, MS
- 01085 Westfield, MS
- 46322 Highland, IN*
- 18062 Macungie, PA
Note: Bolded ZIPs were on last years ranking and starred ZIPs represent metros that were on last years’ ranking.
Home of the Hottest ZIP Codes
The Midwest and Northeast lead the list this year. The Northeast is home to seven of the ten trendiest ZIP codes on the list, including an astounding three in Massachusetts, two in New Jersey, and one in each of New York and Pennsylvania. For the first time in the history of the data, the metro areas of Springfield, MS, and Philadelphia are represented by a ZIP code on the Hottest Zips list.
With three ZIP codes that were included in the list from the previous year, the Midwest is ranked third. Since 2017, Columbus, Ohio, has actually appeared on the Hottest Zips list year. Just two regions are represented on the top-10 list for the second year in a row and just the second time in the list’s history.
Because buyer interest has migrated away from places that are normally unaffordable or have grown less affordable due to strong price growth during the epidemic, the Southern and Western regions are not featured in this year’s ten hottest ZIPs. The number of properties for sale has significantly increased, especially in the South. This has resulted in a reduction in buyer demand for individual properties, causing the housing market in the area to chill and slow down.
Highly Competitive Market Competition for the Hottest U.S. ZIPs
The most popular ZIP codes of the year all provided prospective homeowners with something of value. Each of the top 10 has a lower median list price and/or median listing price per square foot when compared to the overall US home market and even the communities in which they are located. The average price of the Midwest zips on this year’s list, Columbus (ZIP 43230 in Gahanna, Ohio), Chicago (ZIP 46322 in Highland, Indiana), and St. Louis (ZIP 63021 in Ballwin, Missouri), was 24.6% less than the national median in June.
This year’s list included three Northeast ZIPs: Springfield, MS (ZIP 01085 in Westfield, MS); Philadelphia-Camden-Wilmington, PA-NJ-DE-MD (ZIP 08054 in Mount Laurel, NJ); and Rochester, NY (ZIP 14609 in center Rochester).
On average, these ZIPs were priced 28.8% lower in June than the U.S. median. In comparison to the broader New York City metro region, even the priciest market on the list, Basking Ridge, NJ (ZIP 07920), with a median listing price of $995,000 in June, was reasonably priced. In June, Basking Ridge’s median listing price per square foot was 33.6% less than the average for the neighboring metro.
Market pace has accelerated due to competition for houses in the hottest ZIP codes of the year. In June 2024, homes in the most sought-after ZIP codes were on the market for an average of 13 days, which is more than a month (-32 days) shorter than the national norm. Successful buyers in these places are well-qualified and well-equipped to buy a property because of the high stakes atmosphere.
In the first half of 2024, successful buyers in these places had an average credit score of 757 compared to the national average of 734, and an average down payment of 16.7% compared to the national average of 14.0%. In addition to selling quickly in these hot regions, residences in the first four months of this year sold for an average 3.3% more than what was listed, compared to 2.3% less on a national level during the same period.
To read the full repor,t including more data, charts, and methodology, click here.
The post Convenience and Value: The Housing Market’s Hottest ZIPs first appeared on The MortgagePoint.
