As anyone who has tried to buy new digs recently can tell you, the U.S. housing market has gone from hot to en fuego. In many communities, frustrated home shoppers face soaring prices and a dwindling number of listings.
The market is especially torrid in 10 ZIP codes across the nation. Realtor.com notes that homes in these locations are selling three times faster than homes did in the hottest communities during 2020.
Factors that make communities especially desirable right now include:
- Homes listed at relatively affordable asking prices and with ample space for the money
- Places with sizable populations of high-income millennials
- Close proximity to local amenities and outdoor activities
ZIP codes that made the Realtor.com list have homes that sell on average in less than a week.
Following are Realtor.com’s 10 hottest ZIP codes in America in 2021 when it comes to housing demand.
10. Franklin, Tennessee
ZIP code: 37067
Metropolitan area: Nashville
A combination of surging demand and a dwindling supply of available homes for sale has ignited the market in the Nashville area. The Home Buying Institute, a real estate information site, expects the trend to continue into at least next year.
Tennessee has become a magnet for new residents. Between 2010 and 2019, the population of Franklin grew by 32.8%, HBI says. This year, people have another big incentive to move to the area — the Volunteer State just eliminated its personal income tax completely, as we detailed in “5 States Cutting Taxes for Next Year — and 2 Raising Them.”
9. Farmington, Michigan
ZIP code: 48336
Metropolitan area: Detroit
Earlier this year, news site Bridge Michigan characterized the state’s housing market as perhaps “the most competitive in history.”
Farmington — a northern suburb of Detroit — is among the places benefitting from this boom. The homeownership rate among millennials in the town is 54%, above the national average, Realtor.com says.
8. Concord, New Hampshire
ZIP code: 03301
Metropolitan area: Concord
Earlier this year, Concord and the Manchester-Nashua region made the list of the top 10 “emerging housing markets” in an analysis by the Wall Street Journal and Realtor.com, as we detailed in “10 Surprising Housing Markets That Suddenly Are Red-Hot.”
Now, Concord has gone from “up and coming” to “already there.” Homes in this ZIP code spend an average of just nine days on the market, 28 days less than the U.S. average, Realtor.com says.
7. Milford, Massachusetts
ZIP code: 01757
Metropolitan area: Worcester
Located on the southeast side of Worcester and an hour outside of Boston, this ZIP code offers plenty of access to jobs. And the trend toward remote work makes Milford even more attractive.
Homes here spend an average of just six days on the market, Realtor.com says.
6. Lincoln Village, Ohio
ZIP code: 43228
Metropolitan area: Columbus
Residents of bigger cities like Chicago and New York are moving to the area around Columbus, Ohio, in droves.
Lincoln Village — located about 10 miles outside downtown Columbus — has seen its median listing price jump 56.7% in one year, up to $235,000, Realtor.com says. However, that price is still 22% and 39% lower than the metro area and the U.S., respectively.
5. Brentwood, North Carolina
ZIP code: 27616
Metropolitan area: Raleigh
Just 20 minutes from three key places — downtown Raleigh, Rolesville and Wake Forest — the Brentwood area of the state’s capital city is a place homeowners love to call home.
In fact, 67% of residents in this ZIP are homeowners, and homeownership among younger millennials is a robust 58%, Realtor.com says.
4. Manchester, New Hampshire
ZIP code: 03103
Metropolitan area: Manchester
The Granite State’s most populous city, Manchester, is known for its strong job market and access to outdoor activities, including hiking and skiing. The 03103 ZIP code covers a largely residential area along the Merrimack River on the southwest side of the city.
Homes spend an average of just five days on the market in this magnet for young people, with 61% of the city’s population under the age of 45.
3. Peabody, Massachusetts
ZIP code: 01960
Metropolitan area: Boston
Home to one of the region’s largest shopping centers — Northshore Mall — Peabody has “affordable asking prices, lower taxes and retirement-friendly lifestyle” options, Realtor.com says.
But if you want to buy in Peabody, act quickly: Homes sit an average of just three days before selling.
2. West Irondequoit, New York
ZIP code: 14617
Metropolitan area: Rochester
This Irondequoit, New York, neighborhood’s 14617 ZIP code ranked third in last year’s survey, but it moves up a spot to No. 2 this year.
Home to a Buffalo Bills football team training camp, the area on the coast of Lake Ontario is attracting residents of Boston and New York in search of more affordable housing.
1. East Colorado Springs, Colorado
ZIP code: 80916
Metropolitan area: Colorado Springs
This neighborhood in eastern Colorado Springs is the place to go if you are just starting out in life and looking to plant roots. A whopping 74% of the population in this ZIP code is under the age of 45.
Home to the Colorado Springs Airport and Peterson Air Force Base, homes here are affordable, and opportunities for hiking and rock climbing abound.
The median listing price is $318,000, up 19.8% since last year.
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