For the first time in half a decade, the suburbs of five major metropolitan areas—Boston, New York, Chicago, Detroit, and St. Louis—are on the annual Hottest ZIP Codes Report from Realtor. Marking a renewed interest in homes near cities, Americans looking to buy in 2023 are shifting to areas that are more affordable relative to the rest of the country and less expensive than the nearby metros.
“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, 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.”
For the first time in the list’s history that only two regions are included, each of this year’s top 10 list are located exclusively in the Midwest and the Northeast, with 43230, Gahanna, Ohio, coming in at No. 1. Homes in the ZIP code were priced 12.7% below the national median in June. With more than a quarter of its population aged 25 to 34, it’s favorable for young renters and buyers alike.
Realtor reports that many homes in the top 10 ZIP codes are either priced at or below the U.S. median or are larger in size than the U.S. average. These homes also received an average of 3.6 more views per listing than in the rest of the country and sold one month faster than average in 2023.
The 2023 Hottest ZIP Codes in America include:
- 43230, Gahanna, Ohio
- 06489, Southington, Connecticut
- 07450, Ridgewood, New Jersey
- 01810, Andover, Massachusetts
- 18064, Nazareth, Pennsylvania
- 46322, Highland, Indiana
- 48183, Trenton, Michigan
- 06851, Norwalk, Connecticut
- 14534, Pittsford, New York
- 63021, Ballwin, Missouri
In seven out of this year’s top 10, 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, revealing that home shoppers in places such as Ridgewood, Andover, and Pittsford could be shopping for more space to accommodate a larger family. This is especially true in Ridgewood, the most expensive ZIP on this year’s list, where the typical household is 19.7% larger than the U.S. average of two-and-a-half people per household.
Noting that the South and West were not represented among this year’s rankings, back in 2017 the two regions accounted for more than half of the hottest ZIPs, and, in both 2018 and 2019, these regions accounted for at least half of the top 10. The West’s high prices and high price growth during the pandemic in the South are likely contributing to the shift, Realtor states.
