Homebuyers are concentrating demand in established Northeast and Midwest suburbs where larger homes, access to major job centers and limited housing supply are pushing sale prices above asking, with Sewell, New Jersey, ranking third nationally and Lititz, Pennsylvania, seventh on Realtor.com’s 2026 list of the hottest U.S. ZIP codes.
The Northeast and Midwest claimed all 10 spots for the fourth consecutive year, while no ZIP codes in the South or West made the ranking.
Peabody, Massachusetts, ZIP code 01960, ranked first, followed by Montclair, New Jersey, at No. 2 and Sewell, New Jersey, ZIP code 08080, at No. 3. Sewell is part of the Philadelphia-Camden-Wilmington metropolitan area.
Fairport, New York, ranked fourth, followed by Westfield, Massachusetts; Livonia, Michigan; Lititz, Pennsylvania; North Haven, Connecticut; New Berlin, Wisconsin; and Wheaton, Illinois.
The rankings point to a widening regional split in the housing market. Realtor.com reported that national for-sale inventory remained 11.3% below pre-pandemic levels in June, while inventory across the 10 hottest ZIP codes was 60.5% below those norms.
Listings in the top-ranked ZIP codes received three to 5.3 times as many views per property as the national average and sold 30 to 42 days faster, according to the report.
That competition is also translating into higher transaction prices.
The typical U.S. home sold for about 2.3% below its asking price during the first half of 2026, while nine of the 10 hottest ZIP codes recorded sales at or above asking. The average sale-to-list ratio among the top 10 was approximately 103.8%.
Montclair homes sold for an average 16.7% above asking, while Fairport properties sold 14.4% above list price.
“This year’s hottest ZIP codes tell us that buyers aren’t simply chasing the lowest price tag anymore — they’re chasing space, character and a manageable commute to a major job center, and they’re willing to pay a premium to get it,” Realtor.com Senior Economist Hannah Jones stated.
Nine of the 10 ZIP codes carried home prices above their surrounding metropolitan-area averages, according to Realtor.com, and eight offered homes larger than the typical property listed in their metro.
The median home listed across the top 10 measured 2,000 square feet, compared with 1,600 square feet across their surrounding metros and 1,800 square feet nationally.
The communities also tend to sit about 10 to 20 miles from their metropolitan area’s central business district, positioning them within commuting distance of major employment centers while offering more suburban housing.
Their housing stock is comparatively old. The median construction year across the 10 ZIP codes averaged 1970, roughly a decade older than the average across U.S. ZIP codes.
Sewell stands out for relative affordability compared with local household incomes. Median household income there was 39.6% above the level Realtor.com estimated would be necessary to afford the area’s typical home with a 20% down payment and a 6.55% mortgage rate.
Livonia recorded the largest income cushion at 64.2%, followed by Sewell and Fairport at 31.4%.
Montclair showed the opposite dynamic, with median household income running 31.1% below Realtor.com’s estimated affordability threshold, indicating that local housing values have outpaced the earnings of many existing residents.
Buyers entering the hottest markets are also bringing stronger financial profiles than the national average.
The average down payment across the top 10 was 17.1%, compared with roughly 13.1% nationally, while the median credit score averaged 766 versus about 747 nationwide.
Montclair buyers posted an average down payment of 22.1%, or more than $318,000, and a median FICO score of 783.
Demand patterns varied depending on metropolitan size. About 48.4% of listing views for Sewell came from the Philadelphia region, while another 26.8% originated in the New York metro area, suggesting the South Jersey market is drawing buyers from multiple higher-cost employment centers.
New Berlin showed a similar pattern, with 49.6% of views originating in Milwaukee and 24.5% in Chicago.
By contrast, larger metropolitan markets relied more heavily on local demand. Wheaton drew 77% of its views from the Chicago region, Montclair received 74.6% from the New York metro and Peabody drew 70% from greater Boston.
Peabody returned to the top 10 for the third time after ranking fifth in 2018 and third in 2021. Homes there spent a median 20 days on the market during the first half of 2026 and sold modestly above asking.
Three communities — Lititz, North Haven and New Berlin — appeared in the rankings for the first time, indicating that intense buyer demand is spreading into additional smaller markets within the Northeast and Midwest corridors that have dominated Realtor.com’s list in recent years.
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