Buyers are paying up for homes with more space and a favorable commute, providing opportunities for lenders in select areas.
The 10 hottest ZIP codes in the United States were all located in the Northeast and Midwest, led by 01960 in Peabody, Massachusetts; 07042 in Montclair, New Jersey; and 08080 in Sewell, New Jersey, according to Realtor.com's latest annual rankings. These ZIP codes commonly attract buyers with better credit scores willing to pay above the asking price.
"What's especially notable is how financially prepared these buyers are," said Hannah Jones, senior economist at Realtor.com, in a press release Monday. "Even in ZIP codes where typical local incomes aren't enough to cover today's home prices, buyers are showing up with larger down payments and stronger credit profiles than the national norm, which tells us this demand is real and well-capitalized."
The average down payment across the list was 17.1%, well above 13.1% nationally, and the median credit score was 766, compared with 747 countrywide.
Montclair buyers posted the strongest profile in the sample, with a 22.1% average down payment alongside a median FICO score of 783. Even the ZIP codes at the lower end of the range, such as Westfield, Massachusetts, which ranked fifth on the list, and Peabody, still landed near the national FICO average while putting down $30,000 and $89,000, respectively, more than the national dollar norm of $25,300, according to the report.
Additionally, the typical home sold for about 2.3% below list price in the first half of this year, while nine of the 10 ZIP codes saw homes sell at or above asking, with an average sale-to-list ratio of about 103.8%. In Montclair and Fairport, New York, which ranked fourth on the list, homes sold 16.7% and 14.4% more than the asking price, respectively.
"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," Jones said.
Across all 10 ZIP codes, the median home for sale measured 2,000 square feet, compared with an average of 1,600 in their surrounding metro and a national median of 1,800. In Montclair, homes for sale averaged 2,625 square feet in the first half of 2026, 85.6% larger than the surrounding New York metro norm, the report found.
These ZIP codes also sit roughly 10 to 20 miles from their metro's central business district, close enough to support a regular in-office schedule but far enough to offer the benefits of suburban living. The housing stock skews older as well, with a median year built across the 10 ZIP codes averaging 1970, about a decade older than the national average, highlighting the importance of well-located, established neighborhoods, the report said.
Rounding out the top five were: Livonia, Michigan; Lititz, Pennsylvania; North Haven, Connecticut; New Berlin, Wisconsin; and Wheaton, Illinois.
The South and West failed to produce a single entry on the list for the fourth consecutive year. More robust homebuilding and softer price growth over the past two years have eased competition in those regions. Nationally, for-sale inventory was 11.3% below pre-pandemic norms in June, but in the hottest ZIP codes, that gap widened to 60.5%, sparking intense competition, according to the report.
