Close proximity to urban centers and household growth cited as top market drivers
Santa Clara, CA – Feb. 13, 2017 (PRNewswire) Realtor.com®, a leading online real estate destination operated by News Corp [NASDAQ: NWS, NWSA]; [ASX: NWS, NWSLV] subsidiary Move, Inc., today announced America’s top suburban hotspots, led by Northeast/Montbello, Colo. (a suburb of Denver); Wylie/St. Paul, Texas (a suburb of Dallas); and Dublin/Dougherty, Calif. (a suburb of San Francisco). Fueled by escalating prices and demand in their surrounding urban areas, each ‘burb on the list has become a hub for increasing prices, fast home sales, and tough competition among buyers.
“Suburbs are traditionally viewed as meccas for young families, willing to trade in shorter commute times and urban nightlife for better schools and larger homes,” said Jonathan Smoke, chief economist. “But the relationship between the suburbs and urban areas is far more intertwined. In recent years, rising home prices and inventory shortages in urban centers have made affordable suburban home prices more appealing for buyers. Our analysis indicates 50 percent of buyers planning to purchase a home this spring indicated they preferred a home in the suburbs.”
To create this list, realtor.com® classified ZIP codes in the nation’s 50 largest metropolitan areas as either suburban or urban, based on household densities. Suburbs were then ranked based on a combined score of household growth, listing price growth and housing supply and demand.
Housing Dynamics in the Top 10 Suburban Hotspots Two critical factors driving the popularity of these hotspots are close proximity to thriving urban centers and strong household growth. The suburbs on the list are located just outside urban centers that are 20 percent hotter than the average metro, where homes are viewed 1.4 more times than the average home included in the study. Additionally, these suburban hotspots have seen an average of 18.8 percent household growth over the last seven years, which is 2.4 and 2.8 times more growth than other suburban and urban neighborhoods, respectively.
As a result, these suburbs rank in the top 8 percent of hottest ZIP codes in the country and homes in these areas received 1.6 times more views on realtor.com® than the typical home in the study. Listings sell 11 days and 9 days faster than other suburban and urban areas, respectively. Homes also receive 1.3 times more views on realtor.com® than other suburban and urban neighborhoods in the area. Listing prices have seen an average of 16.9 percent growth, annually, over the last three years. Additionally, homes sell 2.5 and 1.9 times faster than all other suburban and urban neighborhoods, respectively.
Realtor.com®’s Top 10 Suburban Hotspots
Realtor.com®’s Top 10 Suburban Hotspots
1. Northeast/Montbello, Denver, Colo. – 80239 Metro: Denver-Aurora-Lakewood This up-and-coming neighborhood sits northeast of Denver and comprises a small part of Rocky Mountain Arsenal National Wildlife Refuge. It is home to a busy commercial warehouse district and offers some of the most affordable homes in close proximity to Denver. It is centrally located near Denver International Airport, as well as I-70 and I-225. Properties in this area spent 19 days on the market, on average, in 2016, which is 40 days less than the typical property in the study. Homes in the area received 1.7 times more views on realtor.com® than the typical home. Prices in this ‘burb grew 20.6 percent annually over the last three years.
2. Wylie/St. Paul, Texas – 75098 Metro: Dallas-Fort Worth-Arlington The community of Wylie/St. Paul is a mix of first-time home buyers, young families, as well as established professionals. The area is booming with new construction that’s being scooped up by home buyers. The two lakes in the area – Lavon Lake and Lake Ray Hubbard – are a big draw for the area; many residents enjoy fishing or boating during the weekends. A new college campus – Collin College – is being built which is expected to draw even more young people to the area and is expected to be finished by 2020. A typical property within this ‘burb spent 41 days on the market, 18 days less than the typical property in the study. Homes in Wylie received 2.4 times more views on realtor.com® than a typical home. The listing price of properties in this ZIP code grew 18.7 percent annually over the last three years.
3. Dublin/Dougherty, Calif. – 94568 Metro: San Francisco-Oakland-Hayward This is a Bay Area suburb, is located south of Oakland and east of Hayward. Due to the higher costs of the Bay Area, it is predominantly made up of upper-middle class families that are first-time home owners. Many of the residents are computer engineers that are attracted to the more affordable cost of living, as compared to Silicon Valley. It boasts a great school system that includes Dublin High School and six other schools that were rated 10/10. The number of households in this neighborhood grew by 25.6 percent between 2010 and 2017 and the area ranked No. 2 in growth of all the ZIPs in the San Francisco metro area. This suburb was ranked No. 7 in hottest scores for the San Francisco metro area. A typical property within this ‘burb spent 24 days on the market in 2016, 35 days less than the typical property and received 2.1 times more views than the rate of the study.
4. Daffan/Hornsby Bend, Texas – 78724 Metro: Austin-Round Rock This suburb sits just east of Austin, and includes Walter E. Long Lake. The area hosts both the Travis County Exposition Center and the Rodeo Austin, home to Austin’s Rodeo, Fair and Stock Show. Many first-time buyers are attracted to this up-and-coming area for the affordable housing and its close proximity to downtown Austin. A typical property within this ‘burb spent 45 days on the market, 14 days less than the typical property in the study. The listing price of properties in this area grew 27.1 percent annually over the last three years, placing this neighborhood second on the list of ZIPs with the highest price growth in the Austin metro area.
5. Orient Park/Progress Village/Palm River-Clair Mel, Fla. – 33619 Metro: Tampa-St. Petersburg-Clearwater This working-class suburb is located between Tampa and Brandon. The area attracts many first-time buyers and young families because of the affordable housing options and endless sunshine. Many of the residents in this suburb commute to either Tampa or Brandon for work daily. A typical property within this suburb spent 47 days on the market in 2016, 12 days less than the typical property in the study. The listing price of properties in this ‘burb grew at an annualized rate of 19.8 percent over the last three years.
6. Vista East/Vista Park, Fla. – 32829 Metro: Orlando-Kissimmee-Sanford, Fla. Vista East/Vista Park is a suburb that is located southeast of Orlando, less than 10 miles away from Orlando International Airport. It is a diverse area in close proximity to shopping plazas, restaurants and fitness centers that attracts buyers looking for newly built homes. The area also attracts people with an active lifestyle because of a plethora of hiking trails, lakes and a short commute to the ocean. Many of the U.S.’s best theme parks are also right down the road, with Disney World and Universal within a 30 minute drive. The listing price of properties in this suburb grew 13.8 percent annually between 2013 and 2016.
7. Cutler Bay/Lakes by the Bay – 33189 Metro: Miami-Fort Lauderdale-West Palm Beach, Fla. This community sits just south of Miami and north of the Florida Keys. It’s a middle-class suburb that attracts mainly first-time buyers and young families, as well as “snowbirds” from the Northern states. Many houses in the area are located in either gated communities or sit on lakes, while all are only steps away from the beach. The number of households in this neighborhood grew by 12.3 percent between 2010 and 2017. A typical property within this suburb spent 50 days on the market in 2016, nine days less than the typical property in the study. The listing price of properties in this suburb grew 16.3 percent annually over the last three years.
8. Milpitas, Calif. – 95035 Metro: San Jose-Sunnyvale-Santa Clara, Calif. Milpitas is a suburb just north of San Jose, close to the southernmost tip of the Bay. A high performing school system, including John Sinnott Elementary School, ranked 10/10, creates a very strong draw to the area for upper-middle-class established professionals with families who work in the tech industry. New construction is booming in this area to facilitate the ever-increasing demand for Silicon Valley housing. The number of households in this neighborhood grew by 15.5 percent between 2010 and 2017 and the Milpitas area ranked third of 28 urban and suburban ZIPs in the San Jose metro area. A typical property within this suburb spent 23 days on the market, 36 days less than the typical property in the study. The listing price of properties in this suburb grew 12.8 percent annually between 2013 and 2016.
9. Williamsburg/Waterhill/White Haven/Blackman, Tenn. – 37129 Metro: Nashville-Davidson-Murfreesboro-Franklin, Tenn. This suburb sits southeast of “Music City” and includes part of the Fall Creek recreation area. The area is home to a middle-class community on the rise. Many first-time buyers are attracted to the area because of the moderate home prices, as compared to Nashville real estate. This community sits next to the Nashville Superspeedway and is an easy drive to downtown Nashville for those looking for nightlife. The number of households in this neighborhood grew by 16.3 percent between 2010 and 2017. A typical property within this suburb spent 34 days on the market in 2016, 25 days less than the typical property in the study. The listing price of properties in this suburb grew 14.0 percent over the last three years, annually.
10. Friendship/Apex, N.C. – 27502 Metro: Raleigh, N.C. The Apex/Friendship area is a suburb just west of Raleigh. It is currently booming with new construction due to the large numbers of people flocking to the area. Many of those attracted to the area are young professionals drawn to the strong job market, affordable housing and the overall quality of life, including a strong school system. Three universities in the area add to the area’s younger demographic. The number of households in this neighborhood grew by 25.2 percent between 2010 and 2017. A typical property within this suburb spent 41 days on the market in 2016, 18 days less than the typical property in the study. The listing price of properties in this suburb grew at an annualized rate of 11.6 percent between 2013 and 2016.
Methodology: Realtor.com® classified ZIP codes in the nation’s 50 largest metropolitan areas as suburban or urban based on their household densities. The remaining ZIP codes were classified as either rural or town and excluded from this analysis. Household growth data is based on Nielsen estimates of ZIP code-level growth between 2010 and 2017 and listing price growth was derived from realtor.com®’s listing database for properties from 2013 to the end of 2016. The hotness scores examined were derived from realtor.com®’s Market Hotness Index, which combines listing view counts and days spent on the market to rank ZIP codes relative to the rest of the country. One ZIP code was included for each metropolitan area.
Appendix 1: Expanded List of Realtor.com®’s Top 20 Suburban Hotspots
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