In a market full of challenges, it’s hard to pinpoint where exactly buyers can look for solid housing options. With that in mind, what are the hottest zip codes for homeowners in 2023?
Realtor.com®’s hottest zip code rankings take a look at zip codes in large metros across the U.S. to find those that are flourishing, despite market issues. The rankings are based on an algorithm that takes into account two aspects of the housing market: market demand (as measured by unique viewers per property) and the pace of the market (as measured by the number of days a listing remains active).
The report found that the hottest zip code of 2023 is Gahanna, Ohio (43230), which continues the legacy of Columbus, Ohio, markets appearing on the hottest zip codes list. While homes in this zip code were priced 12.7% below the national median in June, other perks include a young population (25% aged 25 – 34), amenities and quality of life similar to a larger town, and proximity to Ohio State University and the Short North Arts District.
Key highlights:
- Suburban space and closer commutes draw home shoppers. Looking more closely at this year’s hottest zips, No. 3 on the list, Ridgewood, New Jersey (07450), is a high-priced suburb of New York City that offers a nicer setting and more space than the NYC metro and is just a one-hour commute from Manhattan. Shoppers are willing to pay up for these amenities, and homes in the area have a price-per-square-foot that is 7.9% higher than the metro’s average.
- Six of this year’s hottest zip codes—generally those found near big cities—drew the majority of their property views from within their metro area, suggesting that in many areas, buyers are looking to move around locally. Additionally, those areas seeing significant interest from other locations are typically seeing it come from big-city shoppers.
- Reflecting this trend, No. 1 ranked Gahanna, Ohio (43230), captured the largest share of out-of-metro viewership among the Midwest metros, drawing 13.1% of its viewership from the New York City area in Q2 2023. In fact, New York City was the top out-of-market viewer for seven of the 10 hottest zips.
- In seven out of 10 of this year’s hottest zip codes, the typical home is larger than the average home in the surrounding metro area. Among the more expensive locations on the list, the typical household size is also larger, indicating that home shoppers in places such as Ridgewood, New Jersey (07450), Andover, Massachusetts (01810), and Pittsford, New York (14534), may be shopping for more space to accommodate a larger family.
- Seven of the top 10 hottest zip codes offer home prices that are similar or lower than the U.S. median listing price or the prices in their surrounding metropolitan area. Notably, the Midwest saw a post-pandemic boom, as traditionally popular metros became unaffordable and many homebuyers looked for value in new locations.
- Four major Midwest markets on this year’s list are close to city centers, including Columbus, Ohio (43230 No. 1 Gahanna), Chicago, Illinois (46322 No. 6 Highland, Indiana), Detroit, Michigan (48183 No. 7 Trenton, Michigan), and St. Louis, Missouri (63021 No. 10 Ballwin, Missouri). These markets offer homebuyers prices that are 24.7% lower than the U.S. median.
- Only the Northeast and Midwest are represented in this year’s ranking, the first time in the list’s history that only two regions are included. The South and West are not represented among this year’s rankings, leaving out regions of the country that have typically contributed several markets to the list.
- Despite the overall housing market starting to cool, with the average home in the U.S. spending nearly 45 days on the market, homes in this year’s hottest zip codes spent just 10 to 25 days on the market and saw three times more visitors per property on realtor.com® in June. With inventory falling 22.4% in these zip codes compared to a 7.1% increase nationally, those looking to buy in these markets are facing tough competition.
Major takeaway:
“As many companies continue to call employees back to the office, we’re seeing a surge in home shoppers who are seeking a desirable combination of cost and convenience within commuting distance of major metropolitan areas,” said Danielle Hale, chief economist for realtor.com®. “In addition to affordable markets, this year’s list also features some higher-priced areas close to large urban cores, which will likely appeal to buyers who are concerned with finding the right mix of size and amenities within reach of a nearby city center.”
“Shoppers in this year’s hottest zip codes should cope by being prepared—pre-approved and zeroed in on their budget and down payment—and really focused on must-haves versus nice-to-haves so they can be ready to act quickly when they see the right home hit the market,” added realtor.com® Economic Research Analyst Hannah Jones.
For the full report, click here.
