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Key Takeaways
- Midwestern neighborhoods dominate Redfin's list of the 10 hottest neighborhoods in the U.S. so far this year, with a few coastal cities also making the list.
- The report stated that the surge in popularity is due to buyers looking for affordability and a convenient commute in suburbs outside of major Midwestern metros.
- Redfin reported that the lack of inventory in several Midwestern cities has led to a high level of competition.
Half of Redfin’s 10 "hottest" neighborhoods so far this year are in the Midwest, with several coastal areas also making the list, according to a report earlier this week.
The real estate brokerage said it looked at year-over-year views of listings on its website in 150 of the most populous metro areas through the end of February to compile its ranking of "hot" neighborhood ZIP codes, along with several other factors including median sale prices.
Redfin’s top 10 list includes Prospect Heights and Clinton Hill, Brooklyn, N.Y. where home sales have doubled in the past year. Two other New York neighborhoods also made the list, with upstate village Fairport in fourth place, and Great Kills in New York City placing sixth. Both neighborhoods saw median listing viewings more than double compared to the same period last.
Jenison, Mich., and the ZIP code for Campton Hills, Ill., and St. Charles were ranked second and third, respectively. Jenison saw a 140% increase in the number of listing views compared to last year. The Illinois neighborhoods outside Chicago also experienced a 40% increase in sales. Redfin reported that suburbs in the Midwest are gaining in popularity, as homebuyers seek affordability and a convenient commute to major metropolises.
Three other Midwest neighborhoods—Milwaukee suburb Franklin, Wis.; Prairie Village and Mission Hills, Kan.; and Twin Cities suburb Lakeville, Minn.—took the seventh, eighth, and ninth spots, respectively. Redfin noted there aren't enough homes for sale to keep up with demand in many of these Midwestern markets, making them highly competitive.
Other top neighborhoods this year include Polk Gulch, Calif. and Russian Hill in San Francisco. Homes have a median sales price of $1.065,000, an increase of 10% over the previous year.
Bowie, Md. Outside of Washington, D.C., the top ZIP code had a home sale increase of more than 30% over last year.
