The biggest cities in the US did not make Realtor.com’s list of the hottest ZIP codes this year.
Home sales in Colorado Springs, Colo., Reynoldsburg, Ohio and Rochester, NY beat top cities in 2020. Homes sold in those ZIP codes in an average of 18 days – 51 days faster than the national average – thanks to the accessibility of these areas to urban areas in downtown, outdoor space, affordability and strong local economies, according to Realtor.com.
“Each of these areas has affordable house prices, and that really helps attract buyers. And because buyers are interested in that affordability, homes in these ZIP codes sell fast,” said Danielle Hale, chief economist at Realtor.com.
Colorado Springs was the hottest market in the U.S. this year, according to Realtor.com.
First-time millennial homebuyers (ages 22 to 38) were the main drivers of hot irreplaceable markets, accounting for 53% of buyers in the best-selling markets, compared to 43% in the rest of the U.S. Millennials prioritizing affordability and sufficient square footage. images, driving them to suburban and secondary markets – and the coronavirus pandemic has made large homes and garden spaces even more attractive, Hale said.
“As the greatest generation in American history continues to advance toward life milestones – settlement, marriage, parenthood – the need for space and affordable housing shines the bright lights in expensive urban areas like New York or Los Angeles,” Hale said. “Now with this extra time at home, try to live, work, play [and] do school all in the same space, people are even more interested in extra space. ”
“Rochester has done a lot to revitalize the downtown area, so that’s appealing to people who are looking for an area that has great city-like amenities without a lot of problems with big cities,” Hale said.
Half of this year the hottest markets were in Northeast suburbs, including Rochester, NY, Melrose, Mass., South Portland, Maine, Hudson, NY and Worcester, Mass. Their popularity was driven by migration from expensive cities in the area, especially New York City and Boston, according to Realtor.com.
“The East Coast has done really well this year,” Hale said. “It’s done a better job of keeping up with construction, and that helps keep homes affordable.”
The second hottest zip code on the market, Reynoldsburg, is near Columbus, Ohio.
But America’s renewed love affair with suburban living could push up prices in secondary markets, while growing demand for city apartments drove rental prices to a six-year low, especially in primary markets.
‘The rise of [building] “Multifamily units can lead to an oversupply of apartment buildings, especially in city centers given the obvious recent shift in consumer preference for single-family homes in the suburbs,” said Lawrence Yun, chief economist at the National Association of Realtors.
Changing housing patterns could become a problem in the upcoming elections, as developers look for new ways to meet demand for affordable housing. President Trump and Secretary of Housing and Urban Development Ben Carson recently wrote an op-ed for the Wall Street Journal, with the “Obama-Biden dystopian vision of building low-income households next to your suburban home.”
‘The crime and chaos in cities with democratic governance have become so bad that liberals themselves come from the Upper West Side of Manhattan. Instead of thinking of their destructive policies, the left wants to make sure there is no escape, ”the op-ed said. “That’s why we stopped the last administration’s radical social engineering project that would have transformed the suburbs from top to bottom.”
“We believe that the suburbs provide a wonderful life for Americans of all races and backgrounds if they are allowed to grow organically, from bottom to bottom,” Trump and Carson read in their eds.
But the demand for suburban housing does not mean big cities are moving away. Historical patterns show that real estate in New York generally bounces within three years after a recession or catastrophic event.
“There are a lot of people who prefer the city. It has culture, it has nightlife, it has close to everything … There are many reasons to stay in the city, depending on what stage of life you are in, “said Hale.
@sarahapaynter“data-reactid =” 117 “>Sarah Paynter is a reporter at Yahoo Finance. Follow her on Twitter @sarahapaynter
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