Midwest and Northeast dominate hottest US housing markets

A report from Realtor.com identifies the hottest housing markets in the United States, noting that for the fourth consecutive year, the top 10 ZIP codes are concentrated in the Midwest and Northeast. These high-demand areas, characterized by high unique views and rapid sales, include Peabody, Massachusetts, which ranks first, followed by Montclair, New Jersey, and Sewell, New Jersey.

Other locations in the top ten include Fairport, New York; Westfield, Massachusetts; Livonia, Michigan; Lititz, Pennsylvania; North Haven, Connecticut; New Berlin, Wisconsin; and Wheaton, Illinois. These markets are seeing significantly higher activity than the national average, with some areas receiving up to 5.3 times more views and selling up to 42 days faster than the national median.

The primary driver for this intense competition is a severe lack of inventory. In these top ZIP codes, inventory levels are 60.5 percent below pre-pandemic norms, compared to a national gap of 11.3 percent. Most of these hot markets are located in outer-ring suburbs of major metropolitan areas, where buyers seek more space. Conversely, the South and West have seen reduced competition due to stronger homebuilding and slower price growth.