As the 2026 midterm elections approach, Democrats are doing their best to make the economy the central issue. Their current favorite word is “affordability,” and they point to the fact that many young people cannot afford to buy their first home in today’s housing market.
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But Realtor.com’s newest report suggests that affordability isn’t the whole story: America’s hottest housing markets aren’t the cheapest. They’re the markets where buyers are competing over a very limited supply of homes.
#RealEstate news:
Top 10 most in-demand ZIP code for homebuyers in the first half of 2026, according to real estate listings platform https://t.co/dvdQwpkCHz, which ranks ZIP codes based on how many views listings receive and how quickly homes sell.https://t.co/ViGsmodfD9
— SteveAndApril (@SteveAndApril1) August 10, 2026
READ MORE: The Forgotten Path to Affordable Housing: More Starter Homes Now
Realtor.com has released its list of the top ten hottest zip codes for buying a home in the nation for 2026. In the places that made the list, the housing supply is relatively tight. Hannah Jones, a senior economist at Realtor.com, notes that supply is running around 60 percent below pre-pandemic levels, compared to inventory across the nation, which is just 11 percent below pre-pandemic rates. Another factor: Homebuyers are coming from the closest metropolitan areas, as opposed to buyers from other parts of the country. Jones said, “We’re not seeing as much of that cross-country migration type of buyer demand.”
This is the ZIP Code with what https://t.co/67OJQIpFFO calls the hottest housing market in the country right now | MarketWatchhttps://t.co/Ax0RGzq4AZ? pic.twitter.com/sxzCdtfkEG
— Tim Rostan. (@mrtgr) August 10, 2026
The supply vs. demand picture is also pushing buyers to pay above the asking price for new homes. In nine of the top ten areas, homes are selling at or above asking price with an average sale-to-list ratio of 103.8 percent. Nationwide, in the first half of 2026, a typical home sold for about 2.3 percent below its list price.
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A few other interesting factors to note: Buyers are putting more money down on homes in these zip codes than the national average, around 17 percent, compared to the national average of 13 percent. Both of these numbers are higher than pre-pandemic levels as well. Jones added that:
“We also know they tend to have higher credit scores, and all this is pointing to this idea that today’s borrowers have to be more financially equipped and financially ready to participate in today’s housing market because with mortgage rates in the mid-to-high 6% range.”
She also stated that the buyers in these zip codes “tend to be very financially able to participate, they have a little bit more money to put down, and they’re more financially robust than the typical U.S. buyer.”
The markets that made the Realtor.com list are all located in (surprisingly) the Northeast and (not such a surprise) the Midwest, although all of them are in blue, high-taxed states. It’s the fourth year in a row that these two regions have taken the top honors. Jones noted that “a lot of these ZIP codes fall in suburbs that are on the outer ring of major metro areas like Boston, New York, Philadelphia.” Jones went on to say that:
“It kind of paints this picture that you can still commute to the busy city center for your job, but you’re taking your big city income where you can get a little more bang for your buck, more space, more of that established suburban quiet life.”
Here are Realtor.com’s top ten ZIP codes:
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1. 01960 — Peabody, Massachusetts
2. 07042 — Montclair, New Jersey
3. 08080 — Sewell, New Jersey
4. 14450 — Fairport, New York
5. 01085 — Westfield, Massachusetts
6. 48154 — Livonia, Michigan
7. 17543 — Lititz, Pennsylvania
8. 06473 — North Haven, Connecticut
9. 53151 — New Berlin, Wisconsin
10. Wheaton, Illinois
The country’s 10 Hottest ZIP Codes fall within desirable suburban corridors, where buyers can take advantage of slower-paced suburban living without giving up access to an economic hub.
Read more: https://t.co/sb2EtEFFQq pic.twitter.com/SFcZKNJwf4
— Realtor.com Economics (@RDC_Economics) August 10, 2026
ALSO READ: The Real Reason Buying a Home Costs So Much
The report also paints a picture of the kind of buyer who is succeeding in today’s market—one with stronger finances and larger down payments. Those characteristics may help explain why some younger buyers who delay saving or enter expensive housing markets are finding homeownership increasingly difficult.
There are some exceptions, though. Through a series of career changes that might not have been his dream jobs, and embarking on a sensible savings plan that meant living at home for a time, 27-year-old Francisco Vasquez of Milwaukee was able to save $72,000 in two years and put that toward a down payment on a $220,000 home. In Pittsburgh, 25-year-old Joanna Belechak, with some help from her parents, was able to purchase a townhouse. She lived at home while going to college and, right after graduation, lived rent-free in a townhouse her parents own for a time. Still, she says a lot of her Gen Z friends who live in more expensive areas think it was “crazy” that she was able to buy a house.
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Despite all of the bad news, there is some good economic news for Gen Z homebuyers. The National Association of Realtors reported that Gen Z homebuyers rose to four percent in 2025, up from three percent the previous year. The average income for those Gen Z buyers was $76,000. And because Gen Zers are actually saving for retirement earlier than their millennial predecessors, they are able to access 401Ks. But maybe one of the more interesting stats, 35 percent of Gen Z homebuyers are single women.
Ultimately, the Realtor.com report doesn’t suggest affordability no longer matters. Rather, it suggests that where homes are selling the fastest, limited inventory — not bargain prices — is driving buyer behavior.
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
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