Realtor.com® Unveils the 2024 Hottest ZIP Codes in America: Midwest and Northeast ZIPs Dominate this Years List

Rhea-AI Summary

Realtor.com® has released its 2024 Hottest ZIP Codes Report, with Gahanna, Ohio (43230) taking the top spot for the second consecutive year. The report highlights that the Midwest and Northeast dominate this year's list, reflecting a focus on affordability and value in larger metros. Key findings include:

1. Seven of the top 10 ZIPs are in the Northeast, with three in Massachusetts.
2. Midwest holds three spots, including Columbus, Ohio, which has been on the list since 2017.
3. Southern and Western regions are not represented this year.
4. Top ZIPs offer lower median list prices compared to national and metro averages.
5. Homes in these ZIPs spent an average of 13 days on the market, 32 days less than the national median.
6. Buyers in these areas have higher average credit scores (757) and down payments (16.7%) compared to national averages.

Positive

• Gahanna, Ohio (43230) tops the list for the second consecutive year, indicating sustained buyer interest
• Top ZIPs offer lower median list prices compared to national and metro averages, providing value for buyers
• Homes in these ZIPs spent an average of 13 days on the market, 32 days less than the national median, indicating high demand
• Buyers in these areas have higher average credit scores (757) and down payments (16.7%), suggesting strong financial qualifications
• Homes in the hottest ZIPs sold for an average 3.3% over asking price, compared to 2.3% under asking price nationally

Negative

• Southern and Western regions are not represented in this year's top 10 ZIPs, indicating a shift in buyer interest away from these areas
• The South has seen a significant increase in for-sale inventory, potentially cooling off and slowing down the region's housing market

Insights

Market Research Analyst

The 2024 Hottest ZIP Codes report reveals a significant shift in the U.S. housing market dynamics. The dominance of Midwest and Northeast ZIPs indicates a clear trend towards affordability and value-seeking among homebuyers. This trend is likely driven by the persistent high mortgage rates and elevated home prices in traditionally hot markets.

Key insights:

• Gahanna, Ohio (43230) retaining the top spot highlights the sustained appeal of affordable, amenity-rich suburbs near major cities.
• The absence of Southern and Western ZIPs in the top 10 suggests a cooling of previously overheated markets, potentially offering opportunities for price corrections.
• The average 13 days on market for these hot ZIPs, compared to the national median, indicates strong demand and supply in these areas.

For investors, this data suggests potential opportunities in Midwest and Northeast markets that offer a balance of affordability and desirability. However, the highly competitive nature of these markets, with homes selling 3.3% above asking price, may present challenges for buyers.

Real Estate Economist

This report underscores a significant market recalibration towards affordability and value. The concentration of hot ZIPs in the Midwest and Northeast, with lower median list prices compared to national figures, reflects a pragmatic shift in buyer preferences amidst high housing costs and interest rates.

Notable economic implications:

• The exodus from high-cost coastal areas to more affordable inland markets could reshape regional economic landscapes.
• Strong buyer qualifications (average credit score of 757 and 16.7% down payments) in these areas suggest a resilient local economy and potentially lower default risks for lenders.
• The rapid pace of sales in these markets may lead to localized housing shortages, potentially driving up prices and affecting affordability in the medium term.

This trend may prompt developers and investors to reconsider their strategies, potentially leading to increased housing development in these newly hot markets to meet growing demand.

Urban Planning Expert

The 2024 Hottest ZIP Codes report highlights a significant urban planning challenge and opportunity. The shift towards Midwest and Northeast suburbs near major cities underscores the need for:

• Improved infrastructure in these rapidly growing areas to support the influx of new residents.
• Balanced development that maintains the affordability and quality of life factors attracting buyers.
• Sustainable growth strategies to prevent urban sprawl and preserve local character.

Cities like Gahanna, Ohio, topping the list for two consecutive years, serve as case studies for successful suburban planning. They offer a blueprint for blending urban amenities with suburban affordability. However, planners must be cautious of potential gentrification and ensure inclusive growth that doesn't price out existing residents.

This trend also signals a need for revitalization efforts in Southern and Western markets that have fallen off the list, potentially through targeted investments in affordable housing and quality-of-life improvements.

Gahanna, Ohio takes the hottest ZIP title for the second year in a row, followed by Ballwin, Mo. and Salem, Mass.

SANTA CLARA, Calif., Aug. 20, 2024 /PRNewswire/ -- For the first time since Realtor.com^®'s inaugural Hottest ZIP Codes Report in 2017, one ZIP code, 43230, Gahanna, Ohio, took the No. 1 spot for a second consecutive year. In the 2024 report, released today, we once again see this years' hottest ZIPs located exclusively in the Midwest and the Northeast, as each of this year's top markets attract buyers who are looking for a combination of value 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 Realtor.com^® Chief Economist Danielle Hale. "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."

The 2024 Hottest ZIP Codes in America, in rank order, are:

1. 43230 Gahanna, Ohio*
2. 63021 Ballwin, Mo.*
3. 01970 Salem, Mass.*
4. 07920 Basking Ridge, NJ*
5. 14609 Rochester, NY*
6. 08054 Mount Laurel, NJ
7. 01453 Leominster, Mass.
8. 01085 Westfield, Mass.
9. 46322 Highland, IN*
10. 18062 Macungie, Pa.*

(Bolded ZIPs were on last years ranking, starred ZIPs represent metros that were on last years' ranking)

This year, the Northeast and Midwest dominate the list. Seven of the 10 hottest ZIP codes on the list are in the Northeast, with an impressive three Massachusetts ZIP codes, two New Jersey ZIP codes and one ZIP code each in New York and Pennsylvania. Philadelphia, Penn and Springfield, Mass metros are represented by a ZIP code on the Hottest Zips list for the first time in the data's history. 

The Midwest holds three spots on the list with three ZIPs that were also on last year's list.  In fact, Columbus, Ohio has been a presence on the Hottest Zips list each year dating back to 2017. This is the second year in a row, and only the second time in the list's history, that only two regions are represented on the top-10 list.

The Southern and Western regions are not represented in this year's ten hottest ZIPs as buyer interest has shifted away from the areas that are generally unaffordable, or have become less affordable due to significant price growth during the pandemic. The South in particular has seen a significant pick up in for-sale inventory, which has thinned out buyer demand on a per-property basis, cooling off and slowing down the region's housing market.

Gahanna Snags the Top Spot, Again
Gahanna topped the list two years in a row. The Columbus area offers home shoppers the amenities and quality-of-life advantages of a larger town, but at a lower price point. Homes in this ZIP code were priced 11.0% below the metro's average, and 19.4% below the national median in the first half of the year. The lifestyle and affordability available in ZIP 43230 (Gahanna, Ohio) drew the attention of shoppers in the New York City metro, though almost half of listing viewership came from within the metro.

Value for Everyone
This years' hottest ZIP codes all offered some form of value for potential buyers. Compared to the greater U.S. housing market, and even the surrounding areas in which they sit, each of the top 10 have a lower median list price and/or median listing price per square foot. The Midwest zips, Columbus (ZIP 43230 in Gahanna, Ohio), Chicago (ZIP 46322 in Highland, Ind.), and St. Louis (ZIP 63021 in Ballwin, Mo.), on this year's list were priced an average 24.6% lower than the national median in June. Three Northeast ZIPs Rochester, N.Y. (ZIP 14609 in central Rochester), Philadelphia-Camden-Wilmington, PA-NJ-DE-MD (ZIP 08054 in Mount Laurel, NJ) and Springfield, Mass. (ZIP 01085 in Westfield, Mass.), on this years' list were priced an average 28.8% below the U.S. median in June. Even the list's highest priced market in Basking Ridge, NJ (ZIP 07920), with a median listing price of $995,000 in June, was affordable relative to the larger New York City metro area. The median listing price per square foot in Basking Ridge was 33.6% below the surrounding metro's average in June

Highly Competitive
Competition for homes in this year's hottest ZIPs has quickened the market pace. Homes in the hottest ZIPs spent an average 13 days on the market in June 2024, more than a month (-32 days) less than the national median. The high-stakes environment in these areas means that successful buyers are well-qualified and well-equipped to purchase a home. Successful buyers in these areas had an average credit score of 757 compared to the U.S.' average of 734 as well as a 16.7% average down payment compared to the national average of 14.0% in the first half of 2024.  Not only are homes going fast in these hottest markets, in the first four months of the year, homes sold for an average 3.3% over asking price while nationally homes sold for an average 2.3% under asking price in the same period.

Read the full report and see how your zip compared: http://www.realtor.com/hottestzips

Top 50 Hottest Zip Codes

Rank	Zip Code	Zip Name	Metro Area	Viewers per property vs US	Median Days on Market	Jan-June Median Listing Price
1	43230	Columbus	Columbus, OH	4.3	11	$345,000
2	63021	Ballwin	St. Louis, MO-IL	3.5	16	$409,000
3	01970	Salem	Boston-Cambridge-Newton, MA-NH	3.6	16	$596,000
4	07920	Basking Ridge	New York-Newark-Jersey City, NY-NJ-PA	3.5	16	$967,000
5	14609	Rochester	Rochester, NY	2.9	8	$151,000
6	08054	Mount Laurel	Philadelphia-Camden- Wilmington, PA-NJ-DE-MD	3.3	18	$385,000
7	01453	Leominster	Worcester, MA-CT	4.2	21	$462,000
8	01085	Westfield	Springfield, MA	5.2	20	$347,000
9	46322	Highland	Chicago-Naperville-Elgin, IL-IN-WI	3.3	21	$250,000
10	18062	Macungie	Allentown-Bethlehem- Easton, PA-NJ	2.7	16	$462,000
11	48154	Livonia	Detroit-Warren-Dearborn, MI	3	21	$328,000
12	53151	New Berlin	Milwaukee-Waukesha, WI	4.1	23	$408,000
13	02703	Attleboro	Providence-Warwick, RI-MA	2.9	21	$516,000
14	61109	Rockford	Rockford, IL	3.1	22	$182,000
15	45240	Cincinnati	Cincinnati, OH-KY-IN	2.8	21	$256,000
16	06611	Trumbull	Bridgeport-Stamford- Norwalk, CT	4.6	25	$596,000
17	17601	Lancaster	Lancaster, PA	3.4	21	$498,000
18	44130	Cleveland	Cleveland-Elyria, OH	3.8	24	$246,000
19	45459	Dayton	Dayton-Kettering, OH	3.3	24	$325,000
20	03051	Hudson	Manchester-Nashua, NH	3.3	27	$632,000
21	43614	Toledo	Toledo, OH	3	26	$190,000
22	44805	Ashland	Ashland, OH	3	26	$250,000
23	44904	Mansfield	Mansfield, OH	3.3	27	$262,000
24	06489	Southington	Hartford-East Hartford- Middletown, CT	4.4	29	$493,000
25	67212	Wichita	Wichita, KS	3.1	29	$258,000
26	28277	Charlotte	Charlotte-Concord- Gastonia, NC-SC	2.6	26	$661,000
27	46033	Carmel	Indianapolis-Carmel- Anderson, IN	3.5	29	$519,000
28	65109	Jefferson City	Jefferson City, MO	2.7	26	$327,000
29	23226	Richmond	Richmond, VA	2.7	28	$658,000
30	19606	Reading	Reading, PA	2.1	24	$279,000
31	48823	East Lansing	Lansing-East Lansing, MI	2.5	27	$320,000
32	55110	Saint Paul	Minneapolis-St. Paul- Bloomington, MN-WI	2.7	26	$399,000
33	40223	Louisville	Louisville/Jefferson County, KY-IN	2.5	28	$425,000
34	06790	Torrington	Torrington, CT	3.3	30	$271,000
35	66614	Topeka	Topeka, KS	2.4	26	$263,000
36	44221	Cuyahoga Falls	Akron, OH	3.1	30	$200,000
37	76021	Bedford	Dallas-Fort Worth-Arlington, TX	2.1	25	$425,000
38	08610	Trenton	Trenton-Princeton, NJ	2.2	24	$337,000
39	95661	Roseville	Sacramento-Roseville- Folsom, CA	2.5	28	$743,000
40	75028	Flower Mound	Dallas-Fort Worth-Arlington, TX	2.4	28	$584,000
41	53081	Sheboygan	Sheboygan, WI	2.7	30	$248,000
42	06770	Naugatuck	New Haven-Milford, CT	2.6	29	$328,000
43	54901	Oshkosh	Oshkosh-Neenah, WI	2.6	30	$230,000
44	49707	Alpena	Alpena, MI	2.7	31	$192,000
45	94550	Livermore	San Francisco-Oakland- Berkeley, CA	1.9	23	$1,275,000
46	53545	Janesville	Janesville-Beloit, WI	4.1	32	$316,000
47	62704	Springfield	Springfield, IL	2.6	31	$168,000
48	95376	Tracy	Stockton, CA	1.9	23	$646,000
49	64118	Kansas City	Kansas City, MO-KS	2.2	28	$268,000
50	47909	Lafayette	Lafayette-West Lafayette, IN	2.2	28	$359,000

Methodology Notes:
Realtor.com's Hottest Zip Code rankings are based on an algorithm that takes into account two aspects of the housing market: 1) market demand, as measured by unique viewers per property on Realtor.com, and 2) the pace of the market as measured by the number of days a listing remains active on Realtor.com. The hottest areas are those that have high demand from buyers, in other words, lots of unique viewers per each property, and fast-selling homes, an indicator of limited supply. Market Hotness rankings based on Realtor.com listing data from January to June 2024. The list of top zip codes is limited to one zip code per metropolitan area. Descriptive statistics in this write-up refer to June 2023 data unless otherwise noted.

About Realtor.com^®
Realtor.com^® is an open real estate marketplace built for everyone. Realtor.com^® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com^® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com^® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com^®.

Media Contact: Mallory Micetich, press@realtor.com

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SOURCE Realtor.com

FAQ

What is the hottest ZIP code in America for 2024 according to Realtor.com?

According to Realtor.com's 2024 Hottest ZIP Codes Report, the hottest ZIP code in America is 43230 in Gahanna, Ohio, which has taken the top spot for the second consecutive year.

Which regions dominate Realtor.com's 2024 Hottest ZIP Codes list?

The Midwest and Northeast regions dominate Realtor.com's 2024 Hottest ZIP Codes list, with seven of the top 10 ZIPs located in the Northeast and three in the Midwest.

How do home prices in the 2024 hottest ZIP codes compare to national averages?

Home prices in the 2024 hottest ZIP codes generally offer better value, with lower median list prices compared to national and metro averages. For example, Midwest ZIPs were priced an average 24.6% lower than the national median in June.

What is the average time on market for homes in the 2024 hottest ZIP codes?

Homes in the 2024 hottest ZIP codes spent an average of 13 days on the market, which is more than a month (32 days) less than the national median.

How do buyer qualifications in the 2024 hottest ZIP codes compare to national averages?

Buyers in the 2024 hottest ZIP codes have higher average credit scores (757 compared to the national average of 734) and higher average down payments (16.7% compared to the national average of 14.0%).