Amidst a housing market grappling with high prices and rising mortgage rates, homebuyers are seeking out havens of affordability and desirability. A recent study by Realtor.com reveals a clear shift towards specific pockets of the Midwest and Northeast, offering a promising alternative for those seeking value in a challenging market.
For the second consecutive year, Gahanna, Ohio, a suburb of Columbus, claimed the top spot as the most in-demand ZIP code in the U.S. This study, encompassing 29,000 ZIP codes nationwide, ranked locations based on the frequency of listing views and the speed at which homes sold. Gahanna’s appeal lies in its combination of spacious homes, relatively affordable prices, and proximity to a major city. With a median listing price of $345,000, compared to the national median of $439,950, Gahanna offers value for buyers seeking more space without breaking the bank.
The study unveiled a distinct geographic trend, with all top 10 ZIP codes situated in the Midwest or Northeast. This shift reflects a cooling housing market in the South, partly attributed to increased inventory in that region. Daniel Hale, chief economist at Realtor.com, explains, “All of the top 10 ZIP codes offer affordability in the form of a lower median list price or median listing price per square foot compared to the U.S. housing market, relative to their surrounding metropolitan area, or both in June.”
The list encompasses several commuter-friendly neighborhoods near major cities like New York and Boston. While some areas feature home prices above the national median, they offer relative affordability compared to properties closer to urban centers. For example, the median listing price of $995,000 in Basking Ridge, New Jersey, might appear steep. However, it represents a discount compared to nearby New York City, with homes offering about 33% more space per dollar than the surrounding metro area.
The study also sheds light on the intense competition in these markets. Homes in the top 10 ZIP codes typically sold within 21 days, less than half the national median of 50 days. This rapid turnover drives up prices, with the hottest markets witnessing an average 7.4% increase in median listing prices, compared to just 0.4% nationally. The report indicates that buyers in these areas tend to be older and more financially secure than the national average. The typical successful buyer in these markets had a credit score of 757 and made a down payment of 16.7%, surpassing national averages.
The complete list of the top 10 hottest ZIP codes, as ranked by Realtor.com:
1. 43230 – Gahanna, OH
2. 63021 – Ballwin, MO
3. 01970 – Salem, MA
4. 07920 – Basking Ridge, NJ
5. 14609 – Rochester, NY
6. 08054 – Mount Laurel, NJ
7. 01453 – Leominster, MA
8. 01085 – Westfield, MA
9. 46322 – Highland, IN
10. 18062 – Macungie, PA
As the housing market continues its trajectory, potential homebuyers seeking value might want to consider these areas, presenting opportunities in a challenging market.
