Forget San Francisco and New York - millennials prefer these 9 smaller cities with 'extremely low home prices' and robust local economies
- High-earning millennials are flocking to smaller US cities to put down roots, according to a new Realtor.com report ranking the hottest ZIP codes in America.
- Buyers are attracted to these markets largely because of their affordable home prices and proximity to big cities.
- Midwestern cities dominate the list, including Grand Rapids, Michigan; Omaha, Nebraska; and Shawnee, Kansas.
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The hottest ZIP codes in America are teeming with millennial homebuyers.
A new ranking from Realtor.com revealed the country's up-and-coming metro areas, where job markets are strong and high-earning millennials are increasingly putting down roots."Even though buyers are moving to smaller markets, they are looking to retain an urban lifestyle by living closer to the city center," said Danielle Hale, chief economist for Realtor.com. "This tells us that today's homebuyers are trying to have it all - proximity to downtown, room to grow, and affordability - and they're finding it outside of the biggest cities in the US."
To determine its ranking, Realtor.com gave every ZIP code in its database with at least 12 listings per month a "hotness score," which was based on indicators of supply - median number of days on the market - and demand - number of listing views.
Realtor.com found that top ZIP codes are characterized by "extremely low home prices, developing local economies, and even larger populations of millennials." Among the top 10 cities, the average home price is $272,000 and the income for residents is 6.5% higher, on average, than the US median.
The growing millennial footprint in these cities is evident, too. The generation accounts for nearly 40% of all new mortgages, on average.
Keep reading for the nine hottest ZIP codes of 2019, according to Realtor.com.