Commutable Homes Give Certain ZIP Codes Extra Cachet

People have long thought of certain zip codes as hotter because of their affluence, top public-school systems or proximity to an important highway or shopping center. Who can forget—if old enough—the chic status of Beverly Hills and its 90210 ZIP code portrayed on a TV show? That city is not on a list compiled by Realtor.com. Instead, this list reveals the hottest ZIP codes in America, not based on super affluence but because of their commutable homes that are near certain large cities as more return to work in offices, maybe not all the time but at least some time. 

“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.

Which cities and suburbs made it onto the top 10 of this ranking, the ninth annual report of this kind? For the first time in five years, the suburbs of Boston, New York, Chicago, Detroit and St. Louis—did. The homes in these markets—all found in the Midwest or Northeast–have more affordable housing stock relative to the rest of the country, are less expensive than their nearby metro area homes or provide better value with more space at a lower price, the survey reported. All also have homes that are priced either at or below the U.S. median, are larger in size than the U.S. average, received an average of 3.6 more views per listing than others in the rest of the country and also sold one month faster than the average sold listing this year.

Which specific communities made the list? Gahanna, Ohio; Southington, Conn., Ridgewood, N.J., Andover, Mass., Nazareth, Penn., Highland, Ind., Trenton, Mich., Norwalk, Conn., Pittsford, N.Y., and Ballwin, Mo. As an example of why any made this list, Gahanna, in the greater Columbus area, offers home buyers amenities and quality of life advantages of a larger town but at a lower price. It’s also home to Ohio State University, the Short North Art District, has a good foodie scene, has homes priced 12.7% below the national median in June and has a young vibrant population of 25-to-34 year olds, some of whom are buyers and other renters and future buyers.

Another noteworthy winner on the list is No. 3 Ridgewood, N.J., considered a pricey suburb of New York City with listings that are more than double the size of those in the NYC metro but it’s an acceptable commute of just one hour from Manhattan. At No. 10, Ballwin, Mo., outside St. Louis, Mo., offers less costly homes than some other nearby areas with the additional plus of more space–upwards of 30% bigger than the metro’s median home square footage.

Some important overall trends are reflected by these results. First, many are viewing options within their metro area, indicating they may want to move locally rather than to a distant new locale. Second, buyers want space. 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. Perhaps, they want space to work from home or have more family members living under the same room or simply want more breathing space post pandemic.

Third, lookers and buyers are not giving up on affordability. A number of locations on the list offer homebuyers prices that are 24.7% lower than the U.S. median, plus a strong local economy.

Finally, if there’s one parting lesson to heed, it’s that houses in the hottest ZIP codes spent only 10 to 25 days on the market and had three times more visitors per property. Competition remains tough in these areas, despite some anecdotal talk that the tough housing market is easing. Advice from Hannah Jones, Economic Research Analyst for Realtor.com, is that homebuyers looking in these hot ZIP codes should be prepared to act fast by getting pre-approved, knowing their budget, and having a down payment ready.