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.
- Their surge in popularity comes as many buyers look for affordability and an easy commute in suburbs outside major Midwestern metros, the report said.
- Redfin noted a lack of inventory to keep up with demand has made several Midwestern markets highly competitive.
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.
Prospect Heights and Clinton Hill in Brooklyn, N.Y., where home sales doubled from the year prior, topped Redfin’s list. 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 saw median listing views more than double from the same period last year.
Jenison, Mich. and the ZIP code that is home to Campton Hills and St. Charles, Ill. came in second and third on the list, respectively. Jenison boasted almost 140% growth in median listing views from last year, while the Illinois neighborhoods outside of Chicago experienced an almost 40% increase in home sales. Redfin said suburbs in the Midwest have seen a surge in popularity as homebuyers look for affordability and an easy commute to major metros.
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 so far this year include Polk Gulch and Russian Hill, Calif., located in the heart of San Francisco, where homes have a median sale price of $1,065,000, up 10% year-over-year.
Bowie, Md. outside of Washington, D.C. rounded out the top ZIP codes with a more than 30% increase in home sales over last year.
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