Midwestward Ho? Homebuyers Strike Deals In Midwest And Northeast

Legendary investor Warren Buffett was onto something when he paid $31, 500 for his house in Omaha, Nebraska, in 1958.

Although the Oracle of Omaha’s hometown didn’t make the top 10 on Realtor.com’s list of the hottest ZIP codes in 2023, it is in a Midwestern market, where the highest concentration of buyers are flocking as they flee from escalating home prices in the Western and Southern U.S. for more affordable locales, according to a report from Realtor.com. 

“This year’s hottest ZIPs value bang for your buck and convenience,” said Hannah Jones, senior economic analyst for Realtor.com. “Buyers are looking for areas where they can get a good amount of space for their money and also be within commuting distance of a large city as employers are bringing workers back to the office.”

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Gahanna, Ohio, outside of Columbus, tops the list with a median home list price of $351,000 — about 2.7% less the national median. The suburb isn’t far from the Intel chip manufacturing megasite going up in Columbus, and it’s near downtown Columbus and the airport.

“It’s just a great opportunity for first-time homebuyers,” said Lee Ritchie, a Realtor with Re/Max Partners in Columbus. “It has a nice housing stock with varying home styles. The Gahanna-Jefferson schools are well-regarded. It has a really good downtown area by a creek that has nice restaurants and cute shops.”

Making Peace With High Home Prices

Other buyers seem to have accepted higher prices and are gravitating toward larger homes in the suburbs outside of large cities in the Northeast.

With a median home list price of $368,000, Southington, Connecticut, comes in at No. 2. Located about halfway between Hartford and New Haven, the town is known for its orchards, the Mount Southington Ski Area and Lake Compounce, one of the longest continuously operating amusement parks in the country.

The town features a mix of Cape Cod, Colonial ranch and split-level homes, but lower-priced condos and townhomes also are available.

The majority of the top 10 ZIP codes boast median list prices beneath the national median of $445,000 as of June. But one ZIP code outside of New York City has a median price of more than $1 million.

“Buyers are looking for value,” Jones said. “This year’s list does seem to be split between buyers looking for somewhere that is overall affordable. Also, we have some areas where prices are a lot higher, but they offer more amenities, a more idyllic setting within commuting distance of larger cities.”

2023 Top 10 Hottest ZIP Codes

Source: Realtor.com

The list was compiled using Realtor.com listing data from January to June and comparing supply and demand. The researchers considered the number of views listings in each ZIP code received and how quickly the homes were sold.

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