Even as the COVID-19 pandemic continues, so does the booming housing market.
Millennials want more space for their money and they are willing to commute to stretch their dollars, according to Realtor.com’s annual list of hottest ZIP codes in the country, released exclusively to USA TODAY.
This year’s top markets are giving homebuyers more bang for their buck in suburban areas, including Rochester, New York; Manchester and Concord, New Hampshire; Worcester, Massachusetts and Columbus, Ohio.
The only two suburbs of major metropolitan areas are Peabody, Massachusetts (near Boston) and Farmington, Michigan (near Detroit).
A few factors contributed to the growing popularity of this year's hottest ZIP codes. They include strong job markets, a better price per square foot, easy access to metro areas. And 46% of the homebuyers are millennials, the report shows.
Homes on this year’s list are 110 square feet larger than a typical U.S. home for sale – 1,850 square feet – and each square foot is priced, on average, 3.7% lower than in surrounding metro areas.
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Demand in these markets comes from first-time homebuyers who are trying to get their foot in the door. With more flexibility created by remote jobs, new buyers have more options for where they can live and can find larger homes at a lower price, experts say.
“These markets have a mix of affordability and opportunity to keep young people interested,” says Danielle Hale, chief economist at Realtor.com. “They continue to see homes sell quickly so that does make them stand out quite a bit.”
Millennials are getting to ages where they would typically settle down, start a family and buy homes, says Hale. This is a long-term demographic factor driving the housing market.
“A lot of young people are looking for opportunities to become homeowners,” Hale says. “That’s something that propels the housing market in a sustainable way and will keep home sales moving forward in a more moderate rate of growth.”
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Yet, homes are selling fast, with houses on eight of the 10 ZIP codes on the list selling in less than a week. This can be stressful for first-time buyers who may not understand what they are getting into, Hale says.
But there is good news.
“If you’re in the market as a first-time buyer, it’s challenging because you’re making the biggest purchase of your life,” she says. “Luckily, there are tools that can help them do things, like websites with price alerts on a home that hits the market right away to try to compete.”
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Realtor.com analyzed more than 29,000 ZIP codes on the time it takes properties to sell and how frequently homes were viewed in each ZIP code from January to June for its study. Eligible ZIP codes had at least 13 active listings each month to calculate a "Hotness" ranking and were limited to one ZIP code per metropolitan area.
Here are the hottest ZIP codes for housing:
1. 80916: East Colorado Springs, Colorado
In 2020, ZIP 80911, also in Colorado Springs was No. 1 on the list. This year’s ZIP is located on the east side of town and is home to the Colorado Springs Airport and Peterson Space Force Base. It’s known for its affordable homes and outdoor activities. The median listing price is up 19.8% year-over-year, but 17% lower than the national median home price.
Average number of days on the market: 4
Median list price: $318,000
2. 14617: West Irondequoit, New York (Rochester)
Rochester is New York’s third-largest metro area. This ZIP code is in the northwestern part of the state on Lake Ontario. The city is full of history that is mixed perfectly with new developments. The median listing priceis up 9.4% from last year, but 28% less than the Rochester metro area and 55% lower than the national median home price.
Average number of days on the market: 6
Median list price: $175,000
3. 01960: Peabody, Massachusetts (Boston)
This ZIP code is a part of Massachusetts’ North Shore and only 20 miles northeast of Boston. Homes here are more affordable than Boston and the area has convenient access to vacation spots along New England’s rocky coastline. The median listing price is 11% lower than the Boston metro area, but 62% higher than the national median home price.
Average number of days on the market: 3
Median listing price: $625,000
4. 03103: Manchester Proper, New Hampshire (Manchester)
Located on the southside of New Hampshire's most popular city, this ZIP code offers affordability, a healthy job market and plenty of outdoor activities. The median list price is up 30% year-over-year, but 23% lower than the Manchester metro area and 18% lower than the national median home price.
Average number of days on the market: 5
Median listing price: $315,000
5. 27616: Brentwood, North Carolina (Raleigh)
This ZIP code is only 20 minutes away from the Research Triangle area of downtown Raleigh, Rolesville and Wake Forest. The area offers both townhomes and luxury homes that can range from $600,000 to $700,000. Duke University is also nearby. The median listing price is up 0.8% year-over-year, and 22% lower than the Raleigh metro area and 17% lower than the national median home price.
Average number of days on the market: 5
Median listing price: $319,000
6. 43228: Lincoln Village, Ohio (Columbus)
Being only 10 minutes from downtown Columbus, this ZIP code is a good mix of suburban and city life. Affordable houses are all over for those either wanting to grow their family or downsize. Columbus offers many state and city parks with biking, hiking and walking trails. The median listing price is up 56.7% from last year, but 22% lower than the Columbus metro area and 39% lower the national median home price.
Average number of days on the market: 5
Median listing price: $235,000
7. 01757: Milford, Massachusetts (Worcester)
Milford is about an hour outside of Boston and on the southeast side of Worcester. Those looking for a job are in a good location that allows access to both large job markets. The median listing price is 6% and 18% higher than the Worcester metro area and the national median prices, respectively, but notably below nearby Boston’s $699,000 median home asking price.
Average number of days on the market: 6
Median listing price: $455,000
8. 03301: Concord Proper, New Hampshire (Concord)
This ZIP code is located right in the heart of New Hampshire’s capital city. The downtown area has two performing arts centers, three museums and there are no state income or sales taxes. The median list price is up 14.4% year-over-year, but still 10% lower than the Concord metro area and 11% lower, respectively, than national median home prices.
Average number of days on the market: 9
Median listing price: $343,000
9. 48336: Farmington, Michigan (Detroit)
If you want an easy commute to Detroit, this ZIP code is just 15 to 20 minutes by car. It is the closest suburb to the city and offers buyers a house with a good amount of land and square footage. The median listing price is up 8.6% from last year, but 13% lower than the Detroit metro area and 37% lower than the national median home price.
Average number of days on the market: 8
Median listing price: $244,000
10. 37067: Franklin, Tennessee (Nashville)
Roughly 21 miles from downtown Nashville, this ZIP code is an easy drive to the music and historic-filled town. The area also has rolling hills, farms, open space and gorgeous landscapes. The median listing price is up 30.6% from last year, and 97% and 120% higher, respectively, than the Nashville metro area and national median home prices.
Average number of days on the market: 5
Median listing price: $847,000
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