Nazareth, one of the communities served by members of the Greater Lehigh Valley REALTORS®, has been ranked No. 5 in the ninth annual Realtor.com® Hottest ZIP Codes Report. Homes listed within the Hottest ZIPs received an average of 3.6 more views per listing than in the rest of the country and sold one month faster than average in 2023.
Located exclusively in the Midwest and the Northeast, each of this year’s top 10 Hottest ZIP codes in America is attracting buyers with homes that are either priced at or below the U.S. median or are larger in size than the U.S. average.
Joining Nazareth on the top 10 2023 Hottest ZIP Codes in America, in rank order, are:
- 43230, Gahanna, Ohio
- 06489, Southington, Conn.
- 07450, Ridgewood, N.J.
- 01810, Andover, Mass.
- 18064, Nazareth, Pa.
- 46322, Highland, Ind.
- 48183, Trenton, Mich.
- 06851, Norwalk, Conn.
- 14534, Pittsford, N.Y.
- 63021, Ballwin, Mo.
“The Nazareth area has always been a gem, but the economic growth and cultural activity has really expanded over the last 5-10 years,” said GLVR President Howard Schaeffer. “There is a farmer’s market that runs May to October, a state-of-the-art pool at borough park that reopened in 2015, interesting places to eat like Birthright Brewing Company and Rios Brazilian Steakhouse, plenty of things to do with venues such as Mountain View Family Drive-In & Miniature Golf and the Nazareth Center for the Arts, pocket parks and playgrounds for individuals and families, and easy access to Allentown, Bethlehem, and Easton, and all nearby highways and getaways.”
Schaeffer added, “When living in the 18064 zip, you can choose from living in the borough, which is more walkable, or you could look into Bushkill, Upper Nazareth or Lower Nazareth townships, which are more rural and suburban, depending – but close to the action.”
“As many companies continue to call employees back to the office, we’re seeing a surge in home shoppers who are seeking a desirable combination of cost and convenience within commuting distance of major metropolitan areas,” said Danielle Hale, Chief Economist for Realtor.com®. “In addition to affordable markets, this year’s list also features some higher priced areas close to large urban cores, which will likely appeal to buyers who are concerned with finding the right mix of size and amenities within reach of a nearby city center.”
Suburban space, closer commutes draw home shoppers
Looking more closely at this year’s hottest ZIPs, shoppers are willing to pay up for shorter commutes and homes in the area have a price-per-square-foot that is higher than the metro’s average.
Big-city dwellers are driving demand
Six of this year’s Hottest ZIP codes – generally those found near big-cities – drew the majority of their property views from within their metro area, suggesting that in many areas, buyers are looking to move around locally. Additionally, those areas seeing significant interest from other locations are typically seeing it come from big-city shoppers.
Size matters: nearly all Hottest ZIPs feature more space
In seven out of 10 of this year’s Hottest ZIP codes, the typical home is larger than the average home in the surrounding metro area.
Homebuyers want affordability
Recent near-record high mortgage rates and still-inflated listing prices continue to create affordability challenges for homebuyers, resulting in buyer demand in areas that boast affordability. Seven of the top 10 Hottest ZIP codes offer home prices that are similar or lower than the U.S. median listing price or the prices in their surrounding metropolitan area. Notably, the Midwest saw a post-pandemic boom, as traditionally popular metros became unaffordable and many home buyers looked for value in new locations.
From hot to not: West, South left out
Only the Northeast and Midwest are represented in this year’s ranking, the first time in the list’s history that only two regions are included. The South and West regions are not represented among this year’s rankings, leaving out regions of the country that have typically contributed several markets to the list. Back in 2017 the South and West accounted for more than half of the Hottest ZIPs, and in both 2018 and 2019, these regions accounted for at least half of the top 10. High prices in the West and high price growth during the pandemic in the South are likely contributing to the shift.
Among the top 10, buyers need to be prepared and move fast
Despite the overall housing market starting to cool, with the average home in the U.S. spending about 45 days on the market, homes in this year’s Hottest ZIP codes spent just 10 to 25 days on the market and saw three times more visitors per property on Realtor.com® in June. With inventory falling 22.4% in these ZIP codes compared to a 7.1% increase nationally, those looking to buy in these markets are facing tough competition.
Realtor.com®’s Hottest ZIP Code rankings are based on an algorithm that takes into account two aspects of the housing market: 1) market demand, as measured by unique viewers per property on Realtor.com®, and 2) the pace of the market as measured by the number of days a listing remains active on Realtor.com®. The hottest areas are those that have high demand from buyers, in other words, lots of unique viewers per each property, and fast-selling homes, an indicator of limited supply. Market Hotness rankings based on Realtor.com® listing data from January to June 2023. The list of top ZIP codes is limited to one ZIP code per metropolitan area. Descriptive statistics in this write-up refer to June 2023 data unless otherwise noted.