City of Watauga; realtor.com illustration
Every month, we take a look at the nation’s hottest housing markets. But once a year, we get a little more granular. After all, when people are house hunting, it’s all about the neighborhood, right? So which specific hoods are buzzing with real estate action right now? The realtor.com® economic team sifted through our data to pinpoint the nation’s hottest ZIP codes.
We found some surprises, a couple of outright shockers, and a big geographical tilt to the western half of the U.S. And mostly, we found that older millennials, ages 25 to 34, are a key factor in turning up the heat. The top ZIP codes in our analysis all attract large populations of millennials with their affordable prices and strong job markets.
“Homes for sale in this year’s hottest ZIP codes are selling almost as quickly as they hit the market,” says Jonathan Smoke, chief economist for realtor.com. “While millennials are usually a significant presence in most markets, their sheer size and buying power have made them a force to be reckoned with in these hot ZIP codes.”
Smoke’s team based its ranking on how long it takes properties to sell in each ZIP code (an indication of supply) and how frequently homes there are viewed on realtor.com (an indication of demand).
Collectively, the 10 hottest ZIPs are seeing average job growth of 2.3% this year, which is 35% stronger than the national rate. They have an average unemployment rate of 3.8%, which is more than 100 basis points lower than the U.S. overall.
These hot areas are also magnets for people relocating, expanding their families, and moving out on their own. Over the past five years, the 10 hottest ZIP codes have seen an average of 6% growth in households, which is 20% stronger than the national average.
Home prices are a crucial variable in hotness. The median cost for a home in the top 20 hottest markets is $309,000, which is 27% higher than the national median of $243,000. So how, exactly, is that a good thing? Well, these neighborhoods actually represent less expensive pockets that give buyers a chance to live in or close to expensive housing markets. These ZIPs offer prices that are 22% cheaper than their surrounding counties and 18% less expensive than their closest major metro areas.
So let’s take a tour of the top 10, shall we? (If you want to dive into the complete ranking and market details, they’re available at research.realtor.com.)
Median list price: $137,000
Local price comparison: 48% less than Tarrant County, 57% less than nearby Dallas–Fort Worth–Arlington
Millennial strength: 65% of homeowners are millennials
Watau-wha? The name may not roll off the tongue, but this near suburb of Fort Worth tops our list of the nation’s hottest ZIP codes, with homes that fly off the market in just 17 days. And why not? Watauga is a youthful and relatively dense community, with a median age of 34 years. It has easy access to the city’s great restaurant and craft brewery scene, and cultural offerings like the Modern Art Museum of Fort Worth. Bonus: Two football powerhouses, the Dallas Cowboys and Texas Christian University, are less than 20 miles away.
Median list price: $630,000
Local price comparison: 7% higher than Contra Costa County, 23% lower than nearby San Francisco–Oakland
Millennial strength: 42% make over $100,000
Just 20 miles from the notoriously expensive San Francisco Bay Area, Pleasant Hill has good transportation links for commuters. It borders Walnut Creek, an affluent community with expensive homes, but also boasts its own beautiful downtown area with parks and highly ranked public schools.
Median list price: $278,000
Local price comparison: 24% lower than Adams County, 45% lower than nearby Denver-Aurora-Lakewood
Millennial strength: 22% make over $100,000
Just 15 miles outside downtown Denver, this ZIP covers parts of Northglenn and Thornton. It’s the perfect location for families who enjoy an active lifestyle—Northglenn has 26 parks that include lakes and ponds, playing fields, and courts; the Greenway Trail System connects to major trail systems in the metro Denver areal. And Adams has 12 Five Star Schools—one of the largest and best school districts in Colorado. It’s no wonder that homes here take just 11 days to sell.
Median list price: $178,000
Local price comparison: 47% lower than El Paso County, and the rest of Colorado Springs
Millennial strength: 39% are homeowners
This ZIP covers southeastern Colorado Springs, including the Peterson Air Force Base and Colorado Springs airport. The broader city of Colorado Springs is an outdoor enthusiast’s dream, with mountains, canyons, springs, and more golf courses than anyone truly needs. The city is also home to several other military bases and counts USAA, Progressive Insurance, Lockheed Martin, and Atmel among its largest employers. It has a cost of living 7% below the national average.
Median list price: $184,000
Local price comparison: 26% lower than Bexar County, 33% lower than the rest of San Antonio–New Braunfels
Millennial strength: 61% are homeowners
Overall, San Antonio is one of the most affordable big cities in the U.S., with a cost of living well below the national average. Plus, Realtors® point to the metro’s quaint and relaxed vibe as one of its biggest assets. Several Fortune 500 companies call it home, and with 132,000 students graduating from military training each year, it’s known as “Military City, USA.” The 78247 ZIP code contains a variety of residential neighborhoods and access to the nearly 1,000-acre McAllister Park and popular disc golf course at McClain Park. Yep, disc golf.
Median list price: $596,000
Local price comparison: 8% lower than Sonoma County and nearby Santa Rosa
Millennial strength: 43% earn over $100,000
Set at the southern edge of some of the state’s best wine country, Petaluma is still within commuting distance of San Francisco. It has an old traditional downtown, and residents boast of the small-town feel and plethora of uber-cute Victorian homes. With a new commuter rail for Sonoma and Marin set to open soon, residents will have more transit options. However, they needn’t look far for work—Petaluma is headquarters to a number of iconic Northern California companies, including Calix, CamelBak, Clover Stornetta Farms, Lagunitas Brewing Co., and Athleta.
Median list price: $462,000
Local price comparison: 10% lower than Middlesex County, 8% higher than nearby Boston-Cambridge-Newton
Millennial strength: 36% of mortgage borrowers are millennials
Ranked as the hottest ZIP code in 2015, Melrose fell to the seventh spot this year as supply began to catch up with demand. Less than 10 miles from Beantown, Melrose has become a magnet for young professionals given its easy access to the city and Logan International Airport. It is served by multiple commuter rail lines, the subway, and buses, and it’s near U.S. Route 1. Melrose’s proximity to Cambridge, which is home to tech and medical companies along with world-renowned educational institutions, also makes it an attractive option given its relative affordability.
Median list price: $183,000
Local price comparison: 1% lower than St. Louis County, 9% lower than nearby St. Louis
Millennial strength: 67% are homeowners
Part of greater St. Louis, Crestwood is a bargain hunter’s dream, with prices that are about half of those of the surrounding area of historic Kirkwood and Webster Groves. It’s the least expensive community that feeds into Lindbergh Schools, a district that has received national honors and several state awards. Crestwood also boasts 120 acres of parks.
Median list price: $309,000
Local price comparison: 35% lower than Clackamas County, 25% lower than nearby Portland-Vancouver-Hillsboro
Millennial strength: 28% of mortgage purchases
Once upon a time (say, a decade or so ago) low-key, hip Portland was easy to afford. It’s not so much anymore, especially with refugees from California’s high prices flocking in and considering homes that are pricey for Portland a bargain. With longtime residents being priced out of Portland, Milwaukie, a town of 20,000 on the city’s southern edge, offers an affordable alternative that’s just 25 minutes from downtown Portland. This area offers waterfront boating, walks along the marina, and a popular farmers market.
Median list price: $497,000
Local price comparison: 18% lower than San Diego County and nearby San Diego–Carlsbad
Millennial strength: They buy 32% of mortgages in the area
This ZIP encompasses San Diego’s North Park neighborhood and nearby Burlingame and Altadena. The area is known for its American Craftsman–style homes, walkability, trendy eateries, art galleries, microbreweries, and, as you probably guessed, a bit of a hipster vibe. The neighborhood also contains the Ray Street Arts District and is adjacent to the sprawling Balboa Park, which houses many of the city’s cultural institutions, as well as its renowned zoo.
The post The Nation’s Hottest ZIP Code Is in … Watauga, TX?! appeared first on Real Estate News and Advice - realtor.com.
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