In a market plagued by low inventory and rising prices, suburbs have become a hot spot for young families and first-time buyers alike—and the proof is all in the numbers. According to Realtor.com, suburbs are seeing high growth across the nation.
In fact, between 2013 and 2016, suburban listing prices grew about 6.7 percent a year, compared to the 9 percent jump of urban listings. As a result, household growth has been stronger in the suburbs, with a nearly 8-percent hike since 2010. Urban household growth was only 6.6 percent for the same time frame.
“Suburbs are traditionally viewed as a mecca for young families, willing to trade in shorter commute times and urban nightlife for better schools and larger homes, but the relationship between the suburbs and urban areas is far more intertwined,” said Jonathan Smoke, Realtor.com’s Chief Economist. “In recent years, rising home prices and inventory shortages in urban centers have made affordable suburban home prices more appealing for buyers.”
The top metros for suburban household growth were all in the Southern U.S., with the top five including Austin-Round Rock, Texas; San Antonio-New Braunfels, Texas; Oklahoma City; Jacksonville, Florida; and Houston-The Woodlands-Sugarland, Texas. Austin-Round Rock saw a 26.7-percent jump in suburban household growth—more than 10 percent higher than its rate of urban growth.
Top suburban listing growth was seen in Cincinnati, Milwaukee, Indianapolis, Miami, and Riverside-San Bernardino, California. Suburban listing prices grew nearly 10 percent in Cincinnati.
Overall, the metros where suburban “hotness” outpaced that of more urban areas were Nashville-Davidson-Murfreesboro-Franklin, Tennessee; Charlotte-Concord-Gastonia, North Carolina and South Carolina; Portland-Vancouver-Hillsboro, Oregon and Washington; Rochester, New York; and Indianapolis-Carmel-Anderson, Indiana. According to Realtor.com, “hotness” scores reflect age of inventory, listing view, speed of supply growth, and market demand.
Realtor.com also ranked the top 10 hottest suburban ZIP codes in the U.S. These included 80239 Northeast/Montbello, Colorado); 75098 (Wylie/St. Paul, Texas); 94568 (Dublin/Dougherty, California); 78724 (Daffan/Hornsby, Texas); 33619 (Orient Park/Palm River-Clair Mel/Progress Village, Florida); 32829 (Vista East, Florida); 33189 (Cutler Bay/Lakes by the Bay, Florida); 95035 (Milpitas, California); 37129 (Williamsburg/Waterhill/White Haven/Blackman, Tennessee); and 27502 (Friendship/Apex, North Carolina.)
Amongst the top 10 ZIP codes, households have jumped an average of 18.8 percent since 2010. Altogether, they boast a combined 92.6 on Realtor.com’s hotness index. To view the full details of Realtor.com’s hotness rankings, visit Research.Realtor.com.