Colorado Ranks Twice on Realtor.com Hottest ZIP Codes for 2017
Realtor.com third annual list of the Hottest ZIP Codes in America
BY JAVIER VIVAS REALTOR.COM DIRECTOR ECONOMIC RESEARCH
The hottest ZIP codes for 2017 illustrate the power of millennial gravitation toward affordable suburbs with local “it” factors. While low inventory is a challenge, millennials are the largest generation in U.S. history and they are flexing their muscle when it comes to the housing market. Increasingly, the hottest housing markets are the ones that appeal to millennial preferences, and right now the standouts are relatively affordable suburbs with local ‘it’ factors such as hiking trails, great restaurants, and nightlife. With the largest cohort of millennials turning 30 in 2020, we can expect these types of areas to stay in demand in the years to come.
Key factors heating things up in the top 10 hottest markets:
- Relative affordability. The median price for a home in these markets is $360,000 – 1.4 times more than the national median – with prices in five of the top 10 ZIPs exceeding the national average. However, when compared to their immediate surrounding metro area, the median home listing price is lower in six of the top 10 ZIPs and when compared to the county, eight are lower.
- Large shares of older millennials. Millennials aged 25 to 34 make up 17 percent of households in the top 10 ZIPs, compared to 15 percent nationally. Older millennial households comprise a greater share of households than their national share in eight out of the top 10 ZIPs. They also make up the largest share of mortgage originations, with 25-to-34-year-olds accounting for 36 percent of mortgages and 35-to-44-year-olds making up 30 percent.
- High millennial ownership rates. Eight of the top 10 ZIPs have a higher home ownership rate among 25-to-34-year-olds than in their surrounding county as a whole. The average 25-to-34-year-old home ownership rate in top 10 ZIPs is 50 percent, compared to 39 percent in their respective counties and 41 percent nationally.
- Strong job markets.The top 10 ZIP codes are located in counties with an average unemployment rate of 3.6 percent, well below the overall national unemployment rate of 4.4 percent.
- High salaries. In nine out of the top 10 ZIPS, the median household income is higher than the national median. The average household income among the top 10 is $75,829, 1.3 times the $57,462 national median. This is true for millennial segment as well; the average household income for 25-to-34-year-olds in the top 10 is $74,635, 1.3 times the $55,871 national median.
#5. 80123 Littleton, Colorado – Situated on the southwest edge of Denver, ZIP 80123 spans communities including Littleton, Marston and Columbine Valley. This suburban hotspot boasts great shopping options, a fun and historic downtown area and plenty of great condo and single-family home options. That’s not to mention its natural beauty and perfect placement for outdoor enthusiasts: Littleton alone features more than 59 parks and an active trail system. Plus, only a 30 minute drive to the base of the Rockies, it’s one of the Denver suburbs with the best mountain access.
- Housing stats: The dominant buyer segment in ZIP 80123 is millennials, who hold 34 percent of new mortgages in the area and have a median household income of $72,126. Homes in Littleton sell in 22 days, 19 percent more quickly than last year, with a median list price of $533,873, down 3.8 percent compared to last year. Jefferson County is expected to add 5,000 jobs this year, an increase of 2 percent.
#7. 80922 Colorado Springs, Colorado – Located less than 25 minutes from Downtown Colorado Springs, the Colorado Springs Airport, and the University of Colorado at Colorado Springs, ZIP 80922 is about as convenient as it gets. That’s especially true for the thousands who work at the nearby Peterson Air Force Base, but the area is also perfect for those simply seeking an active lifestyle: El Paso County has been called one of the healthiest counties in America. Recreational activity options abound, with miles of nearby trails for hiking, biking, and horse riding.
- Housing stats: The number of households in the ZIP grew by 19.5 percent from 2010 – 2017, and it has a home ownership rate of 80 percent among all age groups and 68 percent among millennials. Reflecting the high concentration of military service members in the area, 43 percent of new mortgages in 80922 are guaranteed by the U.S. Department of Veterans Affairs. Homes in Colorado Springs sell in 21 days, about 5 percent more quickly than last year, with a median list price of $273,322, up 4.6 percent over last year. El Paso County is expected to add 9,000 jobs this year, an increase of 3 percent.
View the full report at: https://research.realtor.com/hottest-zip-codes-2017/