BAM Key Details: 

  • This year’s list of the ten “Hottest ZIP Codes for Homebuyers” by shows affordability is still a potent influence on buyer behavior. But it’s not the only one.
  • Buyers sensitive to higher rates and home prices are being driven to more affordable Midwestern markets, while buyers coming to terms with higher housing costs are choosing amenity-laden suburbs just outside popular Northeastern metros. 
  • No ZIP codes from the West or South made the list this year.® has identified the ten Hottest ZIP Codes of 2023. And while housing affordability (or the lack thereof) is still a major issue driving buyer activity, this year’s list shows it’s not the only one. 

For buyers who can absorb the cost difference from rising home prices and mortgage rates above 7%, the top priority isn’t so much saving money as it is finding a home in a neighborhood that provides— 

  • Larger homes
  • Value-add amenities 
  • Shorter commutes to the office
  • Good school districts
  • Charming downtown areas

This year’s list reveals two very different types of buyers: those driven to more affordable Midwest metros and those who can absorb the higher cost of buying a home and are choosing suburbs packed with high-value amenities and close to popular Northeastern hubs. 

This year’s hottest ZIPs values bang for your buck and convenience. Buyers are looking for areas where they can get a good amount of space for their money and also be within commuting distance of a large city as employers are bringing workers back to the office.

Hannah Jones

This year’s list favors the Midwest and Northeast, for the reasons mentioned above. Not a single ZIP code from the West or South made the top ten.

A lot of West Coast ZIP codes are still just too expensive to be drawing in a lot of demand. Similarly, a lot of Southern ZIP codes saw sizable price growth during the [COVID-19] pandemic, so have seen demand wane. The Midwest and the Northeast didn’t see the same level of price growth.

Hannah Jones

Profile of this year’s hottest ZIP codes 

Over half of the top ten ZIP codes on the list have median list prices lower than the national median of $445,000 in June, but one—located outside New York City—stands out with a median price of over $1 million. The next priciest is near Boston. 

Across the board, though, home prices are rising quickly as demand picks up. Home values increased by 7.2% in the first half of 2023 compared with the first half of the year before. National home values grew only 4.2% during the same period. 

Even as the number of home sales declined, growing popularity drove up prices more quickly in these neighborhoods as listings received roughly 3.1 times as many views as the typical real estate listing nationwide. They also sold more quickly, spending 10 to 25 days on the market—well under the national average of 44 days. 

The faster turnover took a heavier toll on housing supply in these markets. Nationally, the number of for-sale homes increased by 7.1% in the first half of 2023. But in the ten hottest ZIP codes, the number dropped 22.4%. 

Buyers are looking for value. This year’s list does seem to be split between buyers looking for somewhere that is overall affordable. Also, we have some areas where prices are a lot higher, but they offer more amenities, a more idyllic setting within commuting distance of larger cities.

Hannah Jones

The ten hottest zip codes for 2023: 

  1. 43230 — Gahanna, OH (Metro: Columbus, OH; Median list price: $351,000)
  2. 06489 — Southington, CT (Metro: Hartford, CT; Median list price: $368,000)
  3. 07450 — Ridgewood, NJ (Metro: New York, NY; Median list price: $1,184,000)
  4. 01810 — Andover, MA (Metro: Boston, MA; Median list price: $992,000)
  5. 18064 — Nazareth, PA (Metro: Allentown, PA; Median list price: $429,000)
  6. 46322 — Highland, IN (Metro: Chicago, IL; Median list price: $268,000)
  7. 48183 — Trenton, MI (Metro: Detroit, MI; Median list price: $238,000)
  8. 06851 — Norwalk, CT (Metro: Bridgeport, CT; Median list price: $596,000)
  9. 14534 — Pittsford, NY (Metro: Rochester, NY; Median list price: $595,000)
  10. 63021 — Ballwin, MO (Metro: St. Louis, MO; Median list price: $353,000)

Read the full report for more details. 

Takeaways for real estate agents

If you’re serving one of the ten hottest ZIP codes, you probably know what buyers moving to the area are most interested in (generally speaking), as well as how difficult it can be to find available homes for buyers—even those willing and able to pay more for the homes they want. 

As demand drives prices further up, some potential buyers will likely explore other ZIP codes that have a stronger supply and lower prices. Be aware of nearby ZIP codes your buyers could explore as alternative options and track any relevant data for neighborhoods that fit your clients’ top criteria, even if they don’t tick all the boxes.