Looking to purchase a home in one of America’s most competitive real estate markets? Be prepared to bundle up as you might find yourself in the Northeast or Midwest regions. Spokeo conducted an analysis of data from Realtor.com to identify the most in-demand ZIP codes for potential homebuyers in the United States. The rankings from Realtor.com consider market demand by looking at the number of property views and the speed of home sales between January and June 2024, singling out the top ZIP code from each metropolitan area.
Realtor.com’s 2024 Hottest ZIP Codes report reveals that the most desirable ZIP codes are located within metropolitan areas in the Northeast and Midwest, such as Columbus, Ohio, and Rochester, New York. With Southern and Western markets becoming pricier, homebuyer interest has shifted towards the Midwest and Northeast, accounting for three and seven of the top 10 hottest ZIP code locations, respectively. Many of the top ZIP codes in these regions offer better value and affordability compared to surrounding areas or the broader U.S. housing market.
While ZIP codes have now become crucial indicators in real estate, their original purpose was to simplify mail delivery. Introduced by the U.S. Postal Service in 1963, the Zone Improvement Plan Code system divided the country into 10 zones, with each digit representing a specific location for precise address identification. Initially met with resistance by the public due to the perceived inconvenience, the introduction of Mr. Zip, a cartoon character created by the Post Office Department, along with a catchy jingle, helped boost ZIP code adoption rates to 86% by 1970.
As ZIP codes gained widespread acceptance in the 1970s, businesses began utilizing them for more than just mail sorting, recognizing them as valuable sources of consumer data. The introduction of ZIP Code Tabulation Areas by the Census Bureau in 2000 allowed for further analysis of demographics, economic conditions, and housing trends based on ZIP code areas. This wealth of localized data led to the development of geotargeting strategies in marketing, enabling retailers to tailor promotions to specific regions and service providers to offer location-specific deals. For instance, Domino’s uses ZIP code data to send targeted marketing offers to customers based on their location.
Lenders incorporate ZIP codes into their lending algorithms to evaluate neighborhood stability and loan risks, a practice that has sparked concerns about potential discrimination. ZIP codes are also instrumental in understanding broader social factors such as health and socioeconomic outcomes. A 2019 study by Harvard Medical School revealed that environmental factors can have a greater impact on certain health conditions, like morbid obesity, than genetic predisposition or family medical history.
In the realm of real estate, ZIP codes have gained new significance as indicators of a neighborhood’s desirability and exclusivity. Some ZIP codes, like the iconic 90210 in Beverly Hills, California, have become synonymous with luxury and prestige. A home’s ZIP code plays a pivotal role in determining its market value, reflecting the reputation and allure of the surrounding area, influencing property prices, and attracting specific buyer demographics.
Stay tuned to discover the top ZIP codes driving the real estate market in 2024.
#10. Macungie, Pennsylvania (18062)
– Metropolitan area: Allentown metro area
– Viewers per property: 2.7x the U.S. average
– Median days on the market: 16
– January to June 2024 median listing price: $462,000
#9. Highland, Indiana (46322)
– Metropolitan area: Chicago metro area
– Viewers per property: 3.3x the U.S. average
– Median days on the market: 21
– January to June 2024 median listing price: $250,000
#8. Westfield, Massachusetts (01085)
– Metropolitan area: Springfield metro area
– Viewers per property: 5.2x the U.S. average
– Median days on the market: 20
– January to June 2024 median listing price: $347,000
#7. Leominster, Massachusetts (01453)
– Metropolitan area: Worcester metro area
– Viewers per property: 4.2x the U.S. average
– Median days on the market: 21
– January to June 2024 median listing price: $462,000
#6. Mount Laurel, New Jersey (08054)
– Metropolitan area: Philadelphia metro area
– Viewers per property: 3.3x the U.S. average
– Median days on the market: 18
– January to June 2024 median listing price: $385,000
#5. Rochester, New York (14609)
– Metropolitan area: Rochester metro area
– Viewers per property: 2.9x the U.S. average
– Median days on the market: 8
– January to June 2024 median listing price: $151,000
#4. Basking Ridge, New Jersey (07920)
– Metropolitan area: New York metro area
– Viewers per property: 3.5x the U.S. average
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Edited by Paris Close, this article features Sheriff Wells. Photo selection was done by Lacy Kerrick. Originally published on Spokeo, this story was created in collaboration with Stacker Studio.
