According to Realtor.com’s latest Hottest ZIP Codes in America Report, millennials are the driving force behind some the the country’s “hottest” markets. According to the report, high-income millennials are helping to drive a nearly 10 percent rise in home selling speed in the most popular markets, notably in areas such as Silicon Valley, the Midwest, and the East Coast.
"When it comes to choosing a home of their own, millennials are looking for opportunity and they're finding it in affordable suburbs," said Danielle Hale, Chief Economist for realtor.com. "These hot housing markets are attracting the attention of hard-working, high-earning 25-to-34-year-olds who are drawn by their relative affordability, strong local economies, and outdoor and cultural amenities."
Realtor.com identified the hottest markets by zip code, based on the time it takes properties to sell and how frequently homes are viewed in each of the 32,000 zip codes studied. Realtor.com’s hottest zip codes include Kentwood, Michigan; Colorado Springs; Watauga, Texas; Castro Valley, California; and Peabody, Massachusetts.
As Hale noted, millennial buyers are looking to affordable areas, and many of the “hottest” markets are marked by affordability. According to Realtor.com, the median price for a home in these markets is $358,000, and top markets are almost all more affordable than their surrounding area. Additionally, half of the top 10 zip codes have median home prices lower than the U.S. overall median.
Millennials are also doing well financially, meaning more are able to buy homes. According to Realtor.com, the median household income for 25 to 34 year olds is 1.3 times higher than the national median, $78,000 versus $60,000, respectively. Millennials are also responsible for the largest chunk of mortgage originations, with mortgage originations in nine of the top 10 counties of these top 10 ZIPs strongly dominated by millennials. Millennials have more mortgage originations, at 34 percent, than the next largest group (35 to 44 year olds) with 31 percent.
Find the complete study here.