Pricey suburbs top Zillow's list of most popular markets this year

Rhea-AI Summary

Zillow's latest analysis reveals that suburban home values are rising faster than urban ones, driven largely by remote work preferences. Woodinville, Washington, tops Zillow's list of the most popular markets, followed by Burke, Virginia, and Highlands Ranch, Colorado. In total, eight out of ten leading suburbs boast home values exceeding their corresponding city centers by over $150,000. This shift marks a significant change in demand dynamics, attributed to buyers prioritizing affordability and space amidst evolving work conditions.

Positive

• Strong demand for suburban homes, with home values growing faster than urban areas.
• Woodinville, Washington, identified as the most popular market for 2022.
• Eight of the top ten suburban markets have home values significantly higher than their nearby principal cities.

Negative

• None.

Home value growth in the suburbs began to speed ahead of urban home value growth last summer

• Zillow's most popular market in early 2022 is Woodinville, Washington. Burke, Virginia, and Highlands Ranch, Colorado, round out the top three. 
• Every city on Zillow's latest 10-most-popular-markets list is a suburban area roughly 30 minutes from the nearest city center. In each suburban area, home values are growing faster than in the metro's largest city.  
• Remote work is a key reason suburban home values are now growing faster than those in urban areas, as home buyers are prioritizing space and affordability over a short commute.

SEATTLE, May 24, 2022 /PRNewswire/ -- Woodinville, Washington, 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 evidence emerges that remote work is a driving force behind fast home value growth in the suburbs, expensive suburban markets are seeing strong demand. 

Zillow analyzed its page-view traffic, home value growth and for-sale inventory for more than 1,000 cities to come up with the site's most popular U.S. markets. 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," said Zillow economist Nicole Bachaud. "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, prompting 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 research 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. 

If a buyer has their eye on a home in one of Zillow's most popular markets, they can likely expect competition. Zillow's five tips for winning a competitive bid can help. Mortgage rates are also changing quickly and can have a significant impact on a home buyer's monthly mortgage payment. Zillow's mortgage calculator is a tool that can help buyers stay on top of their finances during their home shopping experience. 

Zillow's Top 10 Most Popular Markets 

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)

 

Metro Area*	Most Popular Market on Zillow to Start Off 2022	Typical Home Value	Typical Home Value Growth: Q1 2022
New York, NY	Montclair (NJ)	$877,182	1.8%
Los Angeles, CA	Yorba Linda	$1,247,646	9.7%
Chicago, IL	Elk Grove Village	$335,964	2.7%
Dallas–Fort Worth, TX	Coppell	$565,930	6.9%
Philadelphia, PA	Havertown	$458,329	4.0%
Houston, TX	Port Bolivar	$450,171	9.0%
Washington, DC	Burke (VA)	$675,890	4.7%
Miami–Fort Lauderdale, FL	Jupiter	$617,720	11.2%
Atlanta, GA	Johns Creek	$624,703	8.4%
Boston, MA	Billerica	$603,084	4.4%
San Francisco, CA	Livermore	$1,187,850	7.9%
Detroit, MI	Livonia	$278,895	4.5%
Riverside, CA	Temecula	$750,760	8.6%
Phoenix, AZ	Gilbert	$572,469	7.6%
Seattle, WA	Woodinville	$1,357,938	11.2%
Minneapolis–St. Paul, MN	Richfield	$338,006	3.8%
San Diego, CA	Encinitas	$1,830,798	10.5%
St. Louis, MO	Ballwin	$378,157	4.9%
Tampa, FL	Westchase	$537,668	9.8%
Baltimore, MD	Ellicott City	$647,470	4.8%
Denver, CO	Highlands Ranch	$777,744	9.9%
Pittsburgh, PA	Bethel Park	$286,686	4.6%
Portland, OR	Tigard	$639,612	7.4%
Charlotte, NC	Concord	$351,500	10.1%
Sacramento, CA	Rocklin	$711,492	5.9%
San Antonio, TX	Canyon Lake	$428,221	9.2%
Orlando, FL	Kissimmee	$340,127	12.1%
Cincinnati, OH	Springboro	$373,420	3.9%
Cleveland, OH	Strongsville	$306,312	4.2%
Kansas City, MO	Prairie Village (KS)	$411,038	6.3%
Las Vegas, NV	Las Vegas	$421,557	9.9%
Columbus, OH	Dublin	$526,583	5.3%
Indianapolis, IN	Franklin	$249,026	7.5%
San Jose, CA	Milpitas	$1,477,181	8.6%
Austin, TX	Cedar Park	$618,479	10.0%
Virginia Beach, VA	Corolla (NC)	$753,674	7.7%
Nashville, TN	Mount Juliet	$514,674	12.5%
Providence, RI	Warwick	$346,785	5.2%
Milwaukee, WI	Wauwatosa	$323,905	3.7%
Jacksonville, FL	Fruit Cove	$528,528	9.6%
Memphis, TN	Olive Branch (MS)	$318,863	7.1%
Oklahoma City, OK	Edmond	$310,261	5.8%
Louisville, KY	New Albany (IN)	$208,544	4.1%
Hartford, CT	West Hartford	$337,641	4.3%
Richmond, VA	Richmond	$315,877	7.1%
New Orleans, LA	Mandeville	$355,150	4.7%
Buffalo, NY	Williamsville	$344,924	4.9%
Raleigh, NC	Cary	$580,261	10.8%
Birmingham, AL	Hoover	$398,352	5.0%
Salt Lake City, UT	Salt Lake City	$612,154	7.2%

*Ordered by market size

About Zillow Group

Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and ease. 

Zillow Group's affiliates and subsidiaries include Zillow®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Trulia®, Out East®, ShowingTime®, Bridge Interactive®, dotloop®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).

 

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SOURCE Zillow

FAQ

What are the most popular real estate markets according to Zillow in 2022?

Zillow's most popular markets in early 2022 are Woodinville, Washington; Burke, Virginia; and Highlands Ranch, Colorado.

How does remote work influence suburban home value growth?

Remote work is driving demand for suburban homes, leading to faster home value growth compared to urban areas.

What is the significance of home value growth in suburbs versus cities?

Suburban homes are now experiencing higher value growth, indicating a shift in buyer preferences towards space and affordability.

Which cities have seen the highest demand for homes according to Zillow?

Cities like Woodinville, Burke, and Highlands Ranch have seen the highest demand for homes in early 2022.

What factors contribute to the increasing home values in suburban areas?

Key factors include remote work flexibility, affordability, and the desire for more living space.