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More home buyers are once again factoring commute times into their homebuying decisions and are moving closer to city centers. Remote work in recent years prompted many to move to more affordable exurbs. Now companies are demanding that workers return to the office, which is driving growth back to the city, according to a new report from realtor.com®.
“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,” says Danielle Hale, realtor.com®’s chief economist. “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.”
The renewed interest in cities marks the first time in five years that the suburbs of major metro areas, such as Boston, New York, Detroit and St. Louis, have made it onto realtor.com®’s list of “hottest ZIP codes.” The list reflects market demand (determined by views of listings on realtor.com®) as well as the number of days listings remain active in an area.
Realtor.com® researchers note that its 2023 list reflects growing demand for areas near metro areas that also offer greater affordability. Home buyers are being faced with higher mortgage rates and home prices, which have been hampering housing affordability.
Topping realtor.com®’s list this year is Gahanna, Ohio (ZIP code 43230), located near Columbus, which is the state capital and home to The Ohio State University. The media home prince in Gahanna was 12.7% below the national median in June, and properties in the in-demand area were on the market for a median of just 13 days.
Overall, the hottest ZIP codes average 3.6 more views per listing online than the rest of the country and had properties that sold one month faster than the average in 2023. Here are the areas that topped realtor.com®’s rankings of 2023’s hottest ZIP codes in housing:
1. ZIP code 43230: Gahanna, Ohio
Metro area: Columbus
Median listing price: $389,000
Median days on the market: 13
2. ZIP code 06489: Southington, Conn.
Metro area: Hartford-East Hartford-Middletown, Conn.
Median listing price: $410,000
Median days on the market: 18
3. ZIP code 07450: Ridgewood, N.J.
Metro area: New York-Newark-Jersey City, N.Y.-N.J.-Pa.
Median listing price: $918,000
Median days on the market: 18
4. ZIP code 01810: Andover, Mass.
Metro area: Boston-Cambridge-Newton, Mass.-N.H.
Median listing price: $1.117 million
Median days on the market: 19
5. ZIP code 18064: Nazareth, Pa.
Metro area: Allentown-Bethlehem-Easton, Pa.-N.J.
Median listing price: $446,000
Median days on the market: 18
6. ZIP code 46322: Highland, Ind.
Metro area: Chicago-Naperville, Elgin, Ill.-Ind.-Wis.
Median listing price: $289,000
Median days on the market: 19
7. ZIP code 48183: Trenton, Mich.
Metro area: Detroit-Warren-Dearborn, Mich.
Median listing price: $280,000
Median days on the market: 20
8. ZIP code 06851: Norwalk, Conn.
Metro area: Bridgeport-Stamford-Norwalk, Conn.
Median listing price: $749,000
Median days on the market: 23
9. ZIP code 14534: Pittsford, N.Y.
Metro area: Rochester
Median listing price: $571,000
Median days on the market: 21
10. ZIP code 63201: Ballwin, Mo.
Metro area: St. Louis
Median listing price: $381,000
Median days on the market: 23
