Where are buyers flocking to? According to realtor.com®'s fourth annual Hottest ZIP Codes in America list—which analyzes 32,000 ZIP codes based on the time it takes a property to sell and how frequently homes are viewed in each ZIP code on realtor.com—a new contender stands at the No. 1 spot: Kentwood, Mich. (49509). The overwhelming trend? High-income millennials largely make up the segment of buyers who are seeking out these locations and increasing how fast these homes are sold.
"When it comes to choosing a home of their own, millennials are looking for opportunity and they're finding it in affordable suburbs," said Danielle Hale, chief economist for realtor.com. "These hot housing markets are attracting the attention of hard-working, high-earning 25-to-34-year-olds who are drawn by their relative affordability, strong local economies and outdoor and cultural amenities."
Here are the top 10 most popular ZIP codes in America today:
- Kentwood, Mich. (49508)
Median List Price: $193,168
- Colorado Springs, Colo. (80922)
Median List Price: $297,811
- Watauga, Texas (76148)
Median List Price: $183,576
- Castro Valley, Calif. (94546)
Median List Price: $784,238
- Peabody, Mass. (01960)
Median List Price: $424,685
- Boise, Idaho (83704)
Median List Price: $251,324
- Worthington, Ohio (43085)
Median List Price: $291,305
- Overland Park, Kan. (66210)
Median List Price: $261,927
- Rochester, N.Y. (14624)
Median List Price: $131,964
- Upper Montclair, N.J. (07043)
Median List Price: $762,350
Why are these locations so popular?
Affordability is one factor—the median price for a home in the top 10 markets is $358,000. Additionally, these locations have attractive employment rates and earning potential: The average household income in the top 10 ZIP codes is $83,000, which is greater than the $61,000 national average. A young demographic that is thriving is attracting other millennials—for eight of the top 10 ZIPs, the median household income for 25-to-34-year-olds is $78,000, 1.3 times higher than the national median. Millennials are also dominating these markets; 34 percent of mortgage originations are claimed by this segment. Healthy credit is another factor; on average, homebuyers in these counties have a FICO score of 729, higher than the national average of 720.
As for market statistics?
On average, these locations feature shorter market time; 20 days on the market before being sold, which is 46 days faster than the rest of the U.S., as well as 25 days faster than their respective metro areas and 18 days faster than their respective counties. Additionally, these ZIPs are getting more eyeballs. Individuals are four times more likely to view homes in these markets when compared to the rest of the country; average views per property for the top 10 list are up 14 percent from last year. Lastly, this list features explosive growth. Five of the top 10 ZIP codes experienced faster growth than the national rate of 8.4 percent, even reaching double digits.
To read the entire report and a breakdown of the methodology, visit www.realtor.com.