Gahanna, Ohio takes the hottest ZIP title for the second year in a row, followed by Ballwin, Mo. and Salem, Mass.

For the first time since Realtor.com^®‘s inaugural Hottest ZIP Codes Report in 2017, one ZIP code, 43230, Gahanna, Ohio, took the No. 1 spot for a second consecutive year. In the 2024 report, released today, we once again see this years’ hottest ZIPs located exclusively in the Midwest and the Northeast, as each of this year's top markets attract buyers who are looking for a combination of value and desirability. 

“While we’ve seen big changes in the housing market, such as a growing number of homes for sale, this year’s hottest ZIP codes in America show common factors are  driving interest in these highly competitive areas,” said Realtor.com^® Chief Economist Danielle Hale. “Although mortgage rate relief is starting to materialize, this year’s hottest ZIPs reflect the focus on affordability that home shoppers have had over the last few years in the face of high housing costs. Concentrated in larger metros across the Northeast and Midwest, these top 10 ZIPs attracted highly qualified home buyers seeking more space without relinquishing proximity to urban amenities.”

The 2024 Hottest ZIP Codes in America, in rank order, are:

1. 43230 Gahanna, Ohio*
2. 63021 Ballwin, Mo.*
3. 01970 Salem, Mass.*
4. 07920 Basking Ridge, NJ*
5. 14609 Rochester, NY*
6. 08054 Mount Laurel, NJ
7. 01453 Leominster, Mass.
8. 01085 Westfield, Mass.
9. 46322 Highland, IN*
10. 18062 Macungie, Pa.*

(Bolded ZIPs were on last years ranking, starred ZIPs represent metros that were on last years’ ranking)

This year, the Northeast and Midwest dominate the list. Seven of the 10 hottest ZIP codes on the list are in the Northeast, with an impressive three Massachusetts ZIP codes, two New Jersey ZIP codes and one ZIP code each in New York and Pennsylvania. Philadelphia, Penn and Springfield, Mass metros are represented by a ZIP code on the Hottest Zips list for the first time in the data’s history.  

The Midwest holds three spots on the list with three ZIPs that were also on last year’s list.  In fact, Columbus, Ohio has been a presence on the Hottest Zips list each year dating back to 2017. This is the second year in a row, and only the second time in the list’s history, that only two regions are represented on the top-10 list. 

The Southern and Western regions are not represented in this year’s ten hottest ZIPs as buyer interest has shifted away from the areas that are generally unaffordable, or have become less affordable due to significant price growth during the pandemic. The South in particular has seen a significant pick up in for-sale inventory, which has thinned out buyer demand on a per-property basis, cooling off and slowing down the region’s housing market.

Gahanna Snags the Top Spot, Again

Gahanna topped the list two years in a row. The Columbus area offers home shoppers the amenities and quality-of-life advantages of a larger town, but at a lower price point. Homes in this ZIP code were priced 11.0% below the metro’s average, and 19.4% below the national median in the first half of the year. The lifestyle and affordability available in ZIP 43230 (Gahanna, Ohio) drew the attention of shoppers in the New York City metro, though almost half of listing viewership came from within the metro.

Value for Everyone

This years’ hottest ZIP codes all offered some form of value for potential buyers. Compared to the greater U.S. housing market, and even the surrounding areas in which they sit, each of the top 10 have a lower median list price and/or median listing price per square foot. The Midwest zips, Columbus (ZIP 43230 in Gahanna, Ohio), Chicago (ZIP 46322 in Highland, Ind.), and St. Louis (ZIP 63021 in Ballwin, Mo.), on this year’s list were priced an average 24.6% lower than the national median in June. Three Northeast ZIPs Rochester, N.Y. (ZIP 14609 in central Rochester), Philadelphia-Camden-Wilmington, PA-NJ-DE-MD (ZIP 08054 in Mount Laurel, NJ) and Springfield, Mass. (ZIP 01085 in Westfield, Mass.), on this years’ list were priced an average 28.8% below the U.S. median in June. Even the list’s highest priced market in Basking Ridge, NJ (ZIP 07920), with a median listing price of $995,000 in June, was affordable relative to the larger New York City metro area. The median listing price per square foot in Basking Ridge was 33.6% below the surrounding metro’s average in June

Highly Competitive

Competition for homes in this year’s hottest ZIPs has quickened the market pace. Homes in the hottest ZIPs spent an average 13 days on the market in June 2024, more than a month (-32 days) less than the national median. The high-stakes environment in these areas means that successful buyers are well-qualified and well-equipped to purchase a home. Successful buyers in these areas had an average credit score of 757 compared to the U.S.’ average of 734 as well as a 16.7% average down payment compared to the national average of 14.0% in the first half of 2024.  Not only are homes going fast in these hottest markets, in the first four months of the year, homes sold for an average 3.3% over asking price while nationally homes sold for an average 2.3% under asking price in the same period. 

Read the full report and see how your zip compared: http://www.realtor.com/hottestzips

Top 50 Hottest Zip Codes

Methodology Notes:

Realtor.com’s Hottest Zip Code rankings are based on an algorithm that takes into account two aspects of the housing market: 1) market demand, as measured by unique viewers per property on Realtor.com, and 2) the pace of the market as measured by the number of days a listing remains active on Realtor.com. The hottest areas are those that have high demand from buyers, in other words, lots of unique viewers per each property, and fast-selling homes, an indicator of limited supply. Market Hotness rankings based on Realtor.com listing data from January to June 2024. The list of top zip codes is limited to one zip code per metropolitan area. Descriptive statistics in this write-up refer to June 2023 data unless otherwise noted.

Pending starter home sales grew 10% in July year over year, while other price brackets fell

Pending sales of starter homes climbed 10.2% year over year in July to the highest level since October 2022, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This shows that there may be signs of life for first-time homebuyers at the lower end of an otherwise sluggish market.

Pending sales of middle-price homes (where the sales price was in the 35th-65th percentile of the market) fell 6.5% in July compared to a year earlier, while upper-price homes (65th-95th percentile) fell even more, down 10%.

One reason starter home pending sales may be strengthening is the recent fall in mortgage rates, which began in mid-July. First-time homebuyers, who make up a significant proportion of the starter-home market, are more sensitive to rate drops as they are less likely to have a large downpayment, meaning rate changes have a greater impact on their monthly payments.

“The overall market remains sluggish, but we are beginning to see first-time homebuyers come off the sidelines, buoyed by falling mortgage rates and an increased number of homes hitting the market,” said Redfin Senior Economist Sheharyar Bokhari. “Not only do you have young families and investors looking at starter homes, you also have buyers who have been forced to consider less-expensive options due to near-record home prices. More buyers means more sales, but so far we aren’t seeing prices skyrocket, because the rising number of homes hitting the market is enough to satisfy the increased demand—a positive outcome for both buyers and sellers.”

Starter home sales dipped slightly, but outperformed other price tiers

Closed sales of starter homes fell 0.6% last month compared to a year earlier, but still outpaced middle- and upper-price homes, which fell 3.9% and 3.4%, respectively.

Movement in sales results typically trails pending sales by a month or more, due to the time it takes for a home sale to close. That means future starter home sales should strengthen even more in August due to July’s spike in pending sales.

“Lower-priced homes are really moving right now, especially since rates went down to around 6.5%,” said Derrell Skillman, a Redfin Premier agent in San Antonio, where pending sales of starter homes rose 22% last month. “We are seeing a lot of younger buyers looking at smaller starter homes. They don’t want a big backyard and a pool, they just want something efficient, with minimal ongoing maintenance required.”

Starter home prices rising more slowly than other tiers as inventory soars

The typical U.S. starter home sold for a record $250,000 in July, up 4.2% year over year. That price growth was slower than middle- and upper-price tiers, which rose 4.6% and 5% respectively.

Increased inventory levels helped to keep starter home price growth lower than other brackets. The number of starter homes on the market spiked 18.9% year over year to the highest level seen since October 2022, pushed by an 18.8% rise in new listings. Meanwhile, inventory in the middle- and upper-price tiers increased by just 4.1% and 1.6%, respectively.

Despite the increase, it’s worth noting that inventory is still sitting well below pre-pandemic levels. For example, there were roughly 30% more starter homes on the market in July 2019 than July this year.

Starter home prices fall in Texas and Florida metros as inventory piles up

Major Texas and Florida metros saw some of the biggest declines in home prices in July, year over year, aided by significant spikes in inventory. The five metros which saw the biggest decline in price were Austin, TX (-3.9% sales price, +17.4% active listings), San Antonio (-2.6% sales price, +50.2% active listings), West Palm Beach, FL (-2% sales price, +34.8% active listings), Fort Lauderdale, FL (-1.9% sales price, +47.5% active listings) and Dallas (-1.6% sales price, +38.5% active listings).

Metro-Level Starter Home Highlights: May-July 2024

• Prices: The median sale price of starter homes rose most in Detroit (15.6% increase to $67,500), Newark, NJ (15.4% increase to $375,000) and Pittsburgh (13.6% increase to $117,000). Its largest falls were in Austin, TX (-3.9% to $326,700), San Antonio (-2.6% to $202,500) and West Palm Beach, FL (-2% to $245,000).
• Sales: Starter home sales increased most in San Francisco (18.7%), San Jose, CA (14.5%) and Cincinnati, OH (12.4%). They decreased most in Fort Lauderdale, FL (-19.6%), West Palm Beach, FL (-17.2%) and Phoenix (-11.9%).
• Active listings: The total number of starter homes for sale increased most in San Antonio (50.2%), Fort Worth, TX (49.6%) and Tampa, FL (48.1%). Only one metro—Milwaukee—saw a fall in active listings (-4.1%).
• New listings: New listings of starter homes increased most in Fort Worth, TX (40.4%). Nassau County, NY (39.5%) and San Antonio, TX (38.3%). New listings fell in Atlanta (-6.5%) and Milwaukee (-5.2%).
• Speed of sales: Starter homes sold fastest in Seattle with a median of seven days, followed by Montgomery County, PA (11 days) and Warren County, MI (12 days). They sold slowest in Fort Lauderdale, FL (81 days), West Palm Beach, FL (77 days) and Miami (67 days).

To view the full report, including charts, methodology and metro-level data please visit: https://www.redfin.com/news/starter-homes-july-2024