Northeast and Midwest Lead List of Housing Markets Hottest ZIP Codes

For the fourth consecutive year, the U.S. housing market’s top 10 hottest ZIP codes for 2026 are all located in the Northeast and Midwest, where limited homebuilding has contributed to tight inventory, according to an Aug. 10 Realtor.com report.The rankings measure buyer demand by unique views and how quickly listings sell.Overall, the report says, listings in the top 10 ZIP codes—which span Massachusetts, New Jersey, New York, Connecticut, Pennsylvania, Wisconsin, Illinois, and Michigan—received up to 5.3 times as many views and sold substantially faster than the national average, by as many as 42 days. According to a July Realtor.com report, the national median time on market was 53 days in June.Meanwhile, nine out of the 10 hottest ZIP codes sold at or above list prices in the first half of the year, while the typical home nationwide sold for about 2.3 percent below asking price, the Aug. 10 report shows.Tight inventory, driven in part by insufficient homebuilding, is fueling heightened competition in the hottest housing markets, the report notes.Nationwide, inventory for sale remained 11.3 percent below pre-COVID-19 pandemic norms in June, according to the report. But in the hottest ZIP codes, inventory was 60.5 percent below pre-pandemic levels—more than five times the national gap.By contrast, the report says that stronger homebuilding and slower price growth in the South and West over the past two years have reduced competition. As a result, the report says, “For the fourth year running, the South and West failed to produce a single entry on the [hottest ZIP code] list.”Meanwhile, the report shows that many of the hottest ZIP codes this year are located in outer-ring suburbs of major metropolitan areas, where buyers can get more space while remaining within commuting distance of city centers.Peabody, Massachusetts—previously ranked third in 2021—moved to the top of the list this year. Located about 20 miles north of Boston, the city has a median home price of $600,000, with 70 percent of views of its listings coming from the Boston metro.Homes there spent a median of only 20 days on the market during the first half of the year, and typically sold for just over the asking price.Montclair and Sewell, New Jersey, ranked second and third, respectively. Fairport, New York, and Westfield, Massachusetts, rounded out the top five. The remaining spots in the top 10 went to Livonia, Michigan; Lititz, Pennsylvania; North Haven, Connecticut; New Berlin, Wisconsin; and Wheaton, Illinois.“This year’s hottest ZIP codes tell us that buyers aren’t simply chasing the lowest price tag anymore,” said Hannah Jones, senior economist at Realtor.com. “They’re chasing space, character and a manageable commute to a major job center, and they’re willing to pay a premium to get it.”Jones added that buyers within these ZIP codes tended to be financially prepared, bringing larger down payments and stronger credit profiles to the table. On average, she said, down payments for homes on the hot list are 17.1 percent, compared with about 13.1 percent nationally. Looking at credit scores, the median for hot list homebuyers is 766, versus about 747 nationally.Overall, the report concluded, buyers in the top ZIP codes are motivated and choose communities that offer the best blend of value, access, and quality of life.“As mortgage rates remain high and inventory levels gradually recover, expect these kinds of high-performing, value-driven suburban areas to remain at the forefront of market activity,” the report states.