10 ZIP Codes Rise Above 32,000 to Create Realtor.com®'s 2015 List of Hottest U.S. Housing Locales

Strong supply-and-demand dynamics driven by affordability, expanding local economies and lifestyle benefits spotlight markets ranging from a California beach town to a leafy Boston suburb

Aug 13, 2015, 06:00 ET from realtor.com

SAN JOSE, Calif., Aug. 13, 2015 /PRNewswire/ -- Move over Beverly Hills, 90210. The ZIP codes 02176 (Melrose, Mass.), 43085 (Worthington, Ohio) and 58103 (Fargo, N.D.) have pushed past one of the nation's most recognizable postal codes and 32,000 others across the U.S. to top realtor.com®'s list of 10 Hottest ZIP Codes* for 2015.

ZIP codes making the list, announced today by realtor.com®, a leader in online real estate services operated by News Corp [NASDAQ: NWS], [NASDAQ: NWSA]; [ASX: NWS], [ASX: NWSLV] subsidiary Move, Inc., are distinguished by healthy housing dynamics, strong local employment and neighborhood "it factors." Realtor.com®'s hotness ranking is determined by the time it takes properties to sell and how frequently homes are viewed in each ZIP code.

Top 10 Hottest ZIP Codes Midyear 2015 (by rank)*




Rank

ZIP Code

Name

1

02176

Melrose, Mass.

2

43085

Columbus, Ohio (Worthington)

3

80122

Littleton, Colo. (Centennial)

4

75023

Plano, Texas

5

48375

Novi, Mich.

6

78247

San Antonio

7

63126

St. Louis (Crestwood)

8

78729

Austin, Texas

9

58103

Fargo, N.D.

10

92010

Carlsbad, Calif.

"Each locale on this list is emblematic of the key trends driving housing this year – healthy local economics, job opportunities and affordability," said Jonathan Smoke, chief economist for realtor.com®. "For first-time home buyers, these communities provide great opportunities to enter the housing market, build a career, and raise a family; older generations are able to build wealth and enjoy a variety of lifestyles."

High Demand, Fast-Moving Supply

In each top-ranked ZIP code, supply and demand are about five times stronger than the rest of the country. Homes in these communities sell four to nine times faster than the national average, with days on market 45 percent, or 20 days, lower than their respective metropolitan statistical areas. Centennial, Colo., has the nation's lowest median age of inventory, with homes selling in approximately two weeks. Listings in each area are viewed three to eight times more often than overall U.S. listings, and an average of 2.3 times more often than their respective metros.

More Money, More Jobs

Income and employment are also contributing to the strong housing markets in these ZIP codes. Median household income among the Top 10 is $71,000, 20 percent higher than their surrounding metropolitan statistical areas and 32 percent higher than the national average of $54,000. Moreover, the share of households earning $100,000 or more is 32 percent, 22 percent higher than their respective markets and one-third higher than the national average of 23 percent.

Unemployment rates in these metros have dropped five times faster than other metros in the country in just the last year. Detroit and St. Louis are the only metros experiencing unemployment rates above 5 percent. ZIP codes on this list have an average of 22 percent lower unemployment than their surrounding metro areas. 

Strong Markets for Millennials

Each of the neighborhoods on this list provides favorable conditions for millennials considering a home purchase. The median income of people ages 25-34 years old in these ZIP codes is 26 percent higher than their respective metros, and 50 percent higher than the national average. In half of these areas, millennials earn 35 percent more than other age groups in the same ZIP code. Novi, Mich., the St. Louis suburb of Crestwood, Mo., and Columbus suburb, Worthington, Ohio, rank high in affordability with the median household able to afford 60-70 percent of the inventory on the market.

"Choosing a neighborhood to call home is not just a product of economic factors; it's an intensely personal decision," stated Smoke. "Non-economic 'it factors' such as strong school systems, short commutes and access to public transportation, as well as close proximity to shopping and restaurants also play an integral role in each market's popularity."

Market Highlights – Top 10 Hottest ZIP Codes

  • 02176 – Melrose, Mass. is close to both Boston and Cambridge and has become a magnet for young professionals and families due to its relative affordability, access to public transportation and attractive downtown area.
    • Population: 27,690
    • Median income for households between the ages 25-34 years old is $88,000, 67 percent higher than the average millennial in the U.S.
    • Market unemployment dropped by 14 percent year over year in the last six months.
    • Median list prices in June 2015 were 5 percent higher than the surrounding metro, and grew 5 percent year over year in both May and June.
  • 43085 – Worthington, Ohio is a major relocation market. It benefits from being part of the Columbus, Ohio metro, which offers stable employment and is the headquarters of a number of financial services and insurance companies – such as Nationwide Mutual Insurance Company and Huntington Bancshares Inc. – as well as The Ohio State University.
    • Population: 13,837
    • Listings receive an average of 1,000 views per month – nearly three times more views than the rest of the metro, and seven times more than the national average.
    • Market unemployment is one of the lowest in the country – about 40 percent lower than the rest of the metro.
    • Median list prices in June were 26 percent higher than the surrounding metro, and grew 10 percent year over year during the first half of the year.
  • 80122 – Centennial, Colo., a suburb of Littleton, is centrally located south of Denver at the intersection of I-70, which traverses the girth of the U.S. from Ohio to Utah, and I-25, which cuts a swath from New Mexico to Wyoming. Centennial boasts a major retail presence and proximity to the area's largest employer, Lockheed Martin, and a new Charles Schwab campus opened in October 2014 that is expected to employ approximately 2,000.
    • Population: 30,457
    • Median income for 25-35 year old households is $88,000, 67 percent higher than the average millennial in the U.S. and 48 percent higher than the average millennial in the metro area.
    • Houses spend approximately two weeks on the market – the shortest number of days on market in the U.S.
    • Market unemployment dropped 20 percent year over year in the last six months.
  • 75023 – Plano, Texas is a suburb of Dallas, and home to the corporate headquarters of Dell Services, Dr. Pepper Snapple Group, Ericsson and Frito-Lay Inc., as well as the future headquarters of Toyota Motors USA. Plano is also home to a new $2 billion, 240 acre mixed-use development, Legacy West, which is bringing more businesses and thousands of new jobs to the area.
    • Population: 46,733
    • Listings receive nearly 1,200 views per month on average, 2.4 times more views than the rest of the metro and eight times more than the national average.
    • Civilian labor force unemployment dropped 22 percent year over year over the last six months.
    • Share of $100,000 earning households is 36 percent and will increase to 40 percent by 2020 based on the latest five-year projections from Nielsen Demographics.
  • 48375 – Novi, Mich. is near the General Motors Technical Center in Warren, Mich., the General Motors Proving Grounds in Milford, Mich., as well as the Ford headquarters in Dearborn, Mich., and is home to some of the region's largest healthcare systems. It is centrally located with quick access to highways, the Detroit airport and a re-emerging downtown Detroit. The Novi Community School District is also a major draw for this ZIP code.
    • Population: 22,189
    • Median income for 25-34 year old households is $80,000, 50 percent higher than the average millennial household in the U.S.
    • Civilian labor force unemployment is 57 percent lower than in the rest of the metro, and has dropped by 30 percent year over year.
    • Median list prices in June were 22 percent higher than the metro.
  • 78247 – San Antonio. Located in the city's North Central district, 78247 is within San Antonio city limits that offers a suburban feel. San Antonio is home to the corporate headquarters of USAA, Valero Energy Corporation, Rackspace, NuStar Energy L.P. and Harland Clarke. Coined "Military City USA," San Antonio has a large military presence with about 100,000 people employed by the armed forces.
    • Population: 49,514
    • Households and population have grown 7 percent in the past five years, two times faster than the rest of the country.
    • Share of $100,000 earning households is expected to grow by 15 percent by 2020.
    • Median list prices in June were 33 percent lower than the metro, and grew 7 percent year over year during the first half of the year.
  • 63126 – Crestwood, Mo. is a suburb of St. Louis. Home prices and quality of schools combined to propel Crestwood to No. 7 on the Top 10 list. The average cost of a home is about half the price of the neighboring ZIP codes of historic Kirkwood and Webster Groves. Crestwood is the most inexpensive community that feeds into Lindbergh Schools – a district that has received national honors and several state awards.
    • Population: 11,942
    • Median income for 25-34 year old households in this ZIP code is $73,000, 40 percent higher than the average millennial household in the U.S. and 38 percent higher than the average millennial in the metro area.
    • Civilian labor force unemployment is one of the lowest in the country and about 40 percent lower than the surrounding metro.
    • Home ownership rate is one the highest in the country at 84 percent, almost 20 percent higher than the U.S.
  • 78729 – Austin, Texas. One of 78 ZIP codes in Austin, 78729 is located on the city's north side, incorporating the residential Jollyville neighborhood, which offers prime access to many of the city's major tech companies, including Apple, IBM and Dell. Jollyville feeds into one of the best school districts in the area, Round Rock ISD, and offers affordably priced homes, perfect for first-time buyers.
    • Population: 26,906
    • Median income for 25-34 year old households in this ZIP code is $73,000, 40 percent higher than the average millennial household in the U.S.
    • Share of $100,000 earning households is expected to grow 23 percent by 2020.
    • Population of millennials ages 25-34 is 23 percent, 75 percent higher than the U.S. average.
  • 58103 – Fargo, N.D. A ZIP code that incorporates many smaller residential neighborhoods, 58103 is just southwest of Fargo's downtown district. It is located just miles from the North Dakota State University campus, and provides many housing options for first-time home buyers. Ranked as the fourth fastest growing metropolitan area by the U.S. Census Bureau, Fargo is home to robust healthcare, technology, agriculture and education industries with corporate offices for Microsoft and Sanford Health.
    • Population: 48,859
    • Median household income has grown 7 percent year over year, and is forecasted to grow 17.5 percent by 2020, nearly three times faster than the national average.
    • Civilian labor force unemployment is one of the lowest in the country.
    • Population of millennials ages 25-34 is 20 percent, 50 percent higher than the U.S. average.
  • 92010 – Carlsbad, Calif., nicknamed the "Village by the Sea," is a tourist destination known for its Legoland theme park. It has four ZIP codes, two of which are right on the coast and extremely pricey. Prices in this region have been steadily increasing over the last 18 months. Located farther from the beach than the others, 92010 offers buyers a big selection of multi-family units, which is a way to get into the real estate market for under $600,000.
    • Population: 14,986
    • Share of $100,000 earning households is 35 percent, 55 percent higher than the U.S. average.
    • Median household income in this ZIP code is $71,000, 16 percent higher than in the rest of the metro.
    • Median list prices were $664,000 in June, 33 percent higher than the metro. They also grew 10 percent year over year during the first half of the year.

 

Top 50 Hottest ZIP Codes Midyear 2015 (by rank)*








Rank

ZIP Code

Name


Rank

ZIP Code

Name

1

02176

Melrose, Mass.

26

50010

Ames, Idaho

2

43085

Columbus, Ohio

27

20151

Chantilly, Va.

3

80122

Littleton, Colo.

28

28273

Charlotte, N.C.

4

75023

Plano, Texas

29

97214

Portland, Ore.

5

48375

Novi, Mich.

30

67212

Wichita, Kan.

6

78247

San Antonio, Texas

31

94503

American Canyon, Calif.

7

63126

Saint Louis, Mo.

32

97078

Beaverton, Ore.

8

78729

Austin, Texas

33

62629

Chatham, Ill.

9

58103

Fargo, N.D.

34

48103

Ann Arbor, Mich.

10

92010

Carlsbad, Calif.

35

95687

Vacaville, Calif.

11

94115

San Francisco, Calif.

36

80501

Longmont, Colo.

12

07028

Glen Ridge, N.J.

37

95661

Roseville, Calif.

13

37210

Nashville, Tenn.

38

03110

Bedford, N.H.

14

14625

Rochester, N.Y.

39

68701

Norfolk, Neb.

15

66214

Overland Park, Kan.

40

98112

Seattle, Wash.

16

91354

Valencia, Calif.

41

30269

Peachtree City, Ga.

17

94954

Petaluma, Calif.

42

23233

Henrico, Va.

18

59102

Billings, Mont.

43

06092

West Simsbury, Conn.

19

95008

Campbell, Calif.

44

49534

Grand Rapids, Mich.

20

80603

Brighton, Colo.

45

21042

Ellicott City, Md.

21

02048

Mansfield, Mass.

46

68144

Omaha, Neb.

22

27560

Morrisville, N.C.

47

46804

Fort Wayne, Ind.

23

14221

Buffalo, N.Y.

48

01772

Southborough, Mass.

24

93433

Grover Beach, Calif.

49

93004

Ventura, Calif.

25

40205

Louisville, Ky.

50

32792

Winter Park, Fla.

*Methodology: Ranking for this list is based on realtor.com®'s Combined Hotness Index for the Jan. – June 2015 time period. The index scores all ZIP codes with 14+ active listings and ranks them on the basis of realtor.com® listing views (to assess demand) and median age of inventory (to assess supply). Each of these metrics is equally weighted and averaged out over the six-month period. This report utilizes data from realtor.com® listings database, where 90 percent of its for-sale listings are updated every 15 minutes from more than 800 multiple listing services (MLS).

Supporting Resources

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About Move, Inc. and realtor.com®

Move, Inc., a subsidiary of News Corp, is a leading provider of online real estate services. Move operates the realtor.com® website and mobile experiences, which connect people to the most important and accurate information they need to find their perfect home and to the REALTORS® whose expertise guides consumers through buying and selling. As the official website of the National Association of REALTORS®, realtor.com® empowers consumers to make smart home-buying, selling and renting decisions by leveraging its direct, real-time connections with more than 800 multiple listing services (MLS) via all types of computers, tablets and smartphones. In addition to the industry's most comprehensive and accurate information, Move's network of websites provides consumers a wealth of innovative tools, including Doorsteps®, Moving.com™, SeniorHousingNetSM  and others. Move supports real estate agents and brokerages by providing many services to grow their businesses, including ListHub™, the nation's leading listing syndicator and centralized intelligence platform for the real estate industry; TigerLead®; Top Producer® Systems; and FiveStreetSM; as well as many free services. Move is based in the heart of Silicon Valley – in San Jose, Calif.  

Forward-Looking Statements

This document contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to changes in global economic, business, competitive market and regulatory and other factors. More detailed information about these and other factors that could affect future results is contained in News Corp's filings with the Securities and Exchange Commission. The "forward-looking statements" included in this document are made only as of the date of this document and we do not have any obligation to publicly update any "forward-looking statements" to reflect subsequent events or circumstances, except as required by law.

Contact:              
Move, Inc. – Lexie Puckett, (805) 557-3151, Lexie.Puckett@move.com

 

SOURCE realtor.com



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