Connect with us

Real Estate Big Data

Top 10 hottest zip codes in America based on employment and housing data

Combining housing and employment data, the Top 10 hottest zip codes are laid out in black and white, with a few surprises on the list.

Published

on

littleton

When looking for affirmation that you’re moving to the right zip code, or simply hoping to bask in the glory of where you live, you look to trends. To dig deeper than the best performing cities, realtor.com actually analyzed zip codes to determine the top 10 Hottest ZIP codes, based on factors such as the health of the housing market, strength of local employment, neighborhood “it factors,” how long it takes for properties in the ZIP code to sell, and how frequently homes are viewed on realtor.com in each ZIP code. It sounds like a mix of science and a little bit of subjectivity (like “it factors”), but is interesting nonetheless.

“Each locale on this list is emblematic of the key trends driving housing this year – healthy local economics, job opportunities and affordability,” said Jonathan Smoke, chief economist for realtor.com®. “For first-time home buyers, these communities provide great opportunities to enter the housing market, build a career, and raise a family; older generations are able to build wealth and enjoy a variety of lifestyles.”

(Click any zip code below for a map.)

Rank ZIP code Name
1 02176 Melrose, MA
2 43085 Columbus, OH (Worthington)
3 80122 Littleton, CO (Centennial)
4 75023 Plano, TX
5 48375 Novi, MI
6 78247 San Antonio, TX
7 63126 St. Louis, MO (Crestwood)
8 78729 Austin, TX (Jollyville)
9 58103 Fargo, ND
10 92010 Carlsbad, CA

Homes move faster here than anywhere else

Supply and demand are five times stronger in these 10 zip codes than the rest of the nation, with homes selling from four to nine times faster than the national average. Listings in these zip codes average 45 percent fewer days on market and listings are viewed three to eight times more than overall U.S. listings.

This report indicates that the employment market is strong in these areas, with a median household income of $71,000 for the top 10, fully 20 percent higher than their surrounding areas and 32 percent higher than the national average of $54,000. Further, the share of households earning $100,000 or more is 32 percent, 22 percent higher than their respective markets and one-third higher than the national average of 23 percent.

Unemployment rates in these metros have dropped five times faster than other metros in the country in just the last year. Detroit and St. Louis are the only metros experiencing unemployment rates over five percent. These zip codes average 22 percent lower unemployment than their surrounding metro areas.

Strong markets for millennial buyers

“Each of the neighborhoods on this list provides favorable conditions for millennials considering a home purchase,” realtor.com indicates. “The median income of people ages 25-34 years old in these ZIP codes is 26 percent higher than their respective metros, and 50 percent higher than the national average. In half of these areas, millennials earn 35 percent more than other age groups in the same ZIP code. Novi, Mich., the St. Louis suburb of Crestwood, Mo., and Columbus suburb, Worthington, Ohio, rank high in affordability with the median household able to afford 60-70 percent of the inventory on the market.”

“Choosing a neighborhood to call home is not just a product of economic factors; it’s an intensely personal decision,” stated Smoke. “Non-economic ‘it factors’ such as strong school systems, short commutes and access to public transportation, as well as close proximity to shopping and restaurants also play an integral role in each market’s popularity.”

Market stats on the top 10:

02176 – Melrose is close to both Boston and Cambridge and has become a magnet for young professionals and families due to its relative affordability, access to public transportation and attractive downtown area.

  • Population: 27,690
  • Median income for households between the ages 25-34 years old is $88,000, 67 percent higher than the average millennial in the U.S.
  • Market unemployment dropped by 14 percent year over year in the last six months.
  • Median list prices in June 2015 were 5 percent higher than the surrounding metro, and grew 5 percent year over year in both May and June.

43085 – Worthington is a major relocation market. It benefits from being part of the Columbus, Ohio metro, which offers stable employment and is the headquarters of a number of financial services and insurance companies – such as Nationwide Mutual Insurance Company and Huntington Bancshares Inc. – as well as The Ohio State University.

  • Population: 13,837
  • Listings receive an average of 1,000 views per month – nearly three times more views than the rest of the metro, and seven times more than the national average.
  • Market unemployment is one of the lowest in the country – about 40 percent lower than the rest of the metro.
  • Median list prices in June were 26 percent higher than the surrounding metro, and grew 10 percent year over year during the first half of the year.

80122 – Centennial, a suburb of Littleton, is centrally located south of Denver at the intersection of I-70, which traverses the girth of the U.S. from Ohio to Utah, and I-25, which cuts a swath from New Mexico to Wyoming. Centennial boasts a major retail presence and proximity to the area’s largest employer, Lockheed Martin, and a new Charles Schwab campus opened in October 2014 that is expected to employ approximately 2,000.

  • Population: 30,457
  • Median income for 25-35 year old households is $88,000, 67 percent higher than the average millennial in the U.S. and 48 percent higher than the average millennial in the metro area.
  • Houses spend approximately two weeks on the market – the shortest number of days on market in the U.S.
  • Market unemployment dropped 20 percent year over year in the last six months.

75023 – Plano is a suburb of Dallas, and home to the corporate headquarters of Dell Services, Dr. Pepper Snapple Group, Ericsson and Frito-Lay Inc., as well as the future headquarters of Toyota Motors USA. Plano is also home to a new $2 billion, 240 acre mixed-use development, Legacy West, which is bringing more businesses and thousands of new jobs to the area.

  • Population: 46,733
  • Listings receive nearly 1,200 views per month on average, 2.4 times more views than the rest of the metro and eight times more than the national average.
  • Civilian labor force unemployment dropped 22 percent year over year over the last six months.
  • Share of $100,000 earning households is 36 percent and will increase to 40 percent by 2020 based on the latest five-year projections from Nielsen Demographics.

48375 – Novi is near the General Motors Technical Center in Warren, Mich., the General Motors Proving Grounds in Milford, Mich., as well as the Ford headquarters in Dearborn, Mich., and is home to some of the region’s largest healthcare systems. It is centrally located with quick access to highways, the Detroit airport and a re-emerging downtown Detroit. The Novi Community School District is also a major draw for this ZIP code.

  • Population: 22,189
  • Median income for 25-34 year old households is $80,000, 50 percent higher than the average millennial household in the U.S.
  • Civilian labor force unemployment is 57 percent lower than in the rest of the metro, and has dropped by 30 percent year over year.
  • Median list prices in June were 22 percent higher than the metro.

78247 – San Antonio. Located in the city’s North Central district, 78247 is within San Antonio city limits that offers a suburban feel. San Antonio is home to the corporate headquarters of USAA, Valero Energy Corporation, Rackspace, NuStar Energy L.P. and Harland Clarke. Coined “Military City USA,” San Antonio has a large military presence with about 100,000 people employed by the armed forces.

  • Population: 49,514
  • Households and population have grown 7 percent in the past five years, two times faster than the rest of the country.
  • Share of $100,000 earning households is expected to grow by 15 percent by 2020.
  • Median list prices in June were 33 percent lower than the metro, and grew 7 percent year over year during the first half of the year.

63126 – Crestwood is a suburb of St. Louis. Home prices and quality of schools combined to propel Crestwood to No. 7 on the Top 10 list. The average cost of a home is about half the price of the neighboring ZIP codes of historic Kirkwood and Webster Groves. Crestwood is the most inexpensive community that feeds into Lindbergh Schools – a district that has received national honors and several state awards.

  • Population: 11,942
  • Median income for 25-34 year old households in this ZIP code is $73,000, 40 percent higher than the average millennial household in the U.S. and 38 percent higher than the average millennial in the metro area.
  • Civilian labor force unemployment is one of the lowest in the country and about 40 percent lower than the surrounding metro.
  • Home ownership rate is one the highest in the country at 84 percent, almost 20 percent higher than the U.S.

78729 – Austin, one of 78 ZIP codes in Austin, 78729 is located on the city’s north side, incorporating the residential Jollyville neighborhood, which offers prime access to many of the city’s major tech companies, including Apple, IBM and Dell. Jollyville feeds into one of the best school districts in the area, Round Rock ISD, and offers affordably priced homes, perfect for first-time buyers.

  • Population: 26,906
  • Median income for 25-34 year old households in this ZIP code is $73,000, 40 percent higher than the average millennial household in the U.S.
  • Share of $100,000 earning households is expected to grow 23 percent by 2020.
  • Population of millennials ages 25-34 is 23 percent, 75 percent higher than the U.S. average.

58103 – Fargo, a ZIP code that incorporates many smaller residential neighborhoods, 58103 is just southwest of Fargo’s downtown district. It is located just miles from the North Dakota State University campus, and provides many housing options for first-time home buyers. Ranked as the fourth fastest growing metropolitan area by the U.S. Census Bureau, Fargo is home to robust healthcare, technology, agriculture and education industries with corporate offices for Microsoft and Sanford Health.

  • Population: 48,859
  • Median household income has grown 7 percent year over year, and is forecasted to grow 17.5 percent by 2020, nearly three times faster than the national average.
  • Civilian labor force unemployment is one of the lowest in the country.
  • Population of millennials ages 25-34 is 20 percent, 50 percent higher than the U.S. average.

92010 – Carlsbad, nicknamed the “Village by the Sea,” is a tourist destination known for its Legoland theme park. It has four ZIP codes, two of which are right on the coast and extremely pricey. Prices in this region have been steadily increasing over the last 18 months. Located farther from the beach than the others, 92010 offers buyers a big selection of multi-family units, which is a way to get into the real estate market for under $600,000.

  • Population: 14,986
  • Share of $100,000 earning households is 35 percent, 55 percent higher than the U.S. average.
  • Median household income in this ZIP code is $71,000, 16 percent higher than in the rest of the metro.
  • Median list prices were $664,000 in June, 33 percent higher than the metro. They also grew 10 percent year over year during the first half of the year.

Don’t see your zip code? Here’s the top 50:

top-50-zip-codes

#Top10zips

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Real Estate Big Data

‘Boom, boom, boom,’ Kudlow declares this a ‘housing boom’ as sales fluctuate

(REAL ESTATE) Existing home sales slide for the month but surge for the year – challenges remain, but Kudlow declares this a “housing boom.”

Published

on

existing home sales

Existing home sales (contracts signed) dipped 1.3% in January, following the current trend of “a fluctuating pattern of monthly increases and declines,” according to the National Association of Realtors (NAR).

NAR points to sluggish sales in the Western region as dragging down the national average, while other regions saw little to no change last month.

The good news, however, is that year over year, existing home sales actually surged 9.6%. Also hopeful is the news this week that housing permits hit a 13-year high, and housing starts recently hit a 13-year high as well.

Although affordability and tight inventory levels continue to hold back the housing market, Larry Kudlow, Director of the United States National Economic Council calls this a “housing boom.”

In jest, when Fox News began to ask about existing home sales, Kudlow interrupted with the words “boom, boom, boom.”

“Whatever the question is, the answer is boom. We’re in a housing boom,” Kudlow asserted.

NAR Chief Economist, Dr. Lawrence Yun calls the outlook for 2020 home sales “promising despite the drop [in existing home sales] in January.”

In a statement, Dr. Yun said, “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales.”

The median existing home price rose 6.8% from January 2019 to hit $266,300. Supply conditions are driving price grown, notes Dr. Yun, adding that low mortgage rates have aided with affordability.

The average days on market fell to 43 days in January (down from 49 in January 2019). Fully 42% of all homes sold in January 2020 were on the market for less than a month.

On Wednesday, Dr. Yun called the housing start and building permit data “jumpy,” which is proving to be applicable to current home sales as well.

It’s this muddy mix of monthly setbacks with wildly successful annual increases. Spring sales are set to similarly trend positively, so long as starts and permits continue to fuel what Kudlow calls a “housing boom.”

Continue Reading

Real Estate Big Data

Get in on alternative data – an inventive new way to market

(REAL ESTATE BIG DATA) Alternative data is a wild ride with surveillance planes, satellite images, and specially equipped helicopters, and it’s not stopping anytime soon.

Published

on

Alternative data

The road less traveled has always been a little stranger and trust me, alternative data is a little strange. Buckle-up your seatbelts, it’s going to be a wild ride.

Data has always been a hot commodity. The digital world has made it easier than ever for investors to get their hands on all kinds of data. The problem is, if one person can gain access to a data set then nearly everyone else can too. So, how are investors supposed to get an edge over their competitors and make the best decisions in their power? Please welcome, alternative data to the stage.

First of all, what the heck is alternative data? According to alternativedata.org, it refers to “data used by investors to evaluate a company or investment that is not within their traditional data sources.” Alternative data is the road less traveled. It offers investors a way to add new and unique variables to the mix.

This data can be anything from private aircraft surveillance to satellite images of parking lots. Every bit of data that investors can gather to determine their next course of action has value. It gets wild, y’all.

In the oil and gas industry, one company uses helicopters decked out with infrared beams to estimate the amount of oil in storage tanks. It may sound like something out of a silly movie, but it’s actually quite clever.

So, is alternative data just an industry fad? Probably not, but what qualifies as this kind of data will evolve over time. As certain practices become more mainstream, they will lose that “alternative” edge. Kind of like when the band you’ve been following for years gets a hit song and now, they’re everyone’s favorite band.

What’s already clear is alternative data is not pixie dust. These creative data sets can provide an interesting insight, but it shouldn’t be the sole basis of any decisions. At the end of the day, alt data points are just more variables on the table. It’s best to not get caught up in the sexiness of private jets and satellites.

One thing is for sure, we will be seeing more creative uses of alternative data in the future.

Continue Reading

Real Estate Big Data

‘Jumpy’ data: Housing starts dip 3.6%, permits hit 13-year high

(REAL ESTATE) Housing starts fall, but experts say the market is *almost* firing on all cylinders. Spring could be rough, but summer looks strong.

Published

on

housing starts + construction

Housing starts (construction on new homes) fell 3.6% in January across America, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development.

This sounds scary, but is barely a blip after skyrocketing at the end of 2019, when housing starts hit a 13-year high.

Also hitting a 13-year high (read: pre-housing crash levels) is applications for building permits, up 9.2% in January, a promising sign for future growth.

National Association of Realtors (NAR) Chief Economist, Dr. Lawrence Yun said, “this housing data is quite jumpy,” but assures people that the 3.6% dip in housing starts is “nothing to be concerned about,” as housing starts are “on an upward path,” continuing to trend positively overall.

Dr. Yun has long pointed to home builders as the secret ingredient for a healthier housing market, as it positively impacts restrictive inventory levels, and allows in otherwise pushed out buyers, particularly first timers.

“More construction will mean more housing inventory for consumers in the later months of this year,” he notes, adding that spring could still be tough for buyers with perpetually tight inventory levels, but “as trade-up buyers move into these new completed homes in the near future, their existing homes will be released onto the market.

Joel Kan, AVP of Economic and Industry Forecasting at the Mortgage Bankers Association (MBA) calls today’s data “another step in the right direction,” noting that despite the December surge followed by the January retraction, “the current pace is still over 1.5 million units – remaining close to the highest levels since 2006.”

Kan points out that while single-family starts are down, they’ve exceeded an annual pace of 1M+ units for a second consecutive month, the first time since 2007. Further, he points out that multifamily just had their strongest month of production in 34 years.

“The success of the spring buying season greatly depends on how much new and existing inventory is on the market,” said Kan.

It could still be a tight market in coming months, but today’s data offers hope for a less “jumpy” market.

Continue Reading
Advertisement

Our Parnters

Get The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox!

Still Trending

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox