Here’s where the housing market is the hottest

Homebuyers are skipping the suburbs and exurbs of big cities and instead flocking to smaller, more affordable metro areas, according to Realtor.com’s list of hottest ZIP codes in the U.S., released exclusively to USA TODAY early Wednesday.

Millennials are driving the popularity of these areas – from Shawnee, Kansas, to Goffstown, New Hampshire. They are looking for cheaper housing that isn’t too far away from the downtowns of the nearby cities where they can dine, shop and work.

Affordability has been the motivating factor for the last five years as housing prices in some markets become too high. But this year’s even more extreme, says Danielle Hale, chief economist at Realtor.com.

“Those markets that came on the list versus those that fell off are much less expensive, about a third less expensive,” she says. “That’s helping those areas to attract buyers, particularly entry-level buyers and millennials, who are the biggest segment of buyers in the market.”

Half of the top 10 ZIP codes are making their debut on the list. The study ranked how hot a ZIP code was by how long it took a house to sell in a market, as well as how often that market was viewed on realtor.com, an aggregate of home listings.

Here are the hottest ZIP codes for housing:

Grand Rapids, Michigan (49505)

Just north of downtown Grand Rapids, this ZIP code runs along the Grand River and features four large parks and a strong school system.

Time on market before selling: 10 days

Median listing price: $178,050, up 11.3% year over year

Millennial buyers make up 48% of new purchase mortgages.

Omaha, Nebraska (68144)

This ZIP code is just 12 miles west of downtown Omaha. Affordable housing and abundant job opportunities at Berkshire Hathaway, Union Pacific Railroad, and Werner Enterprises are bringing millennials to the area.

Time on market before selling: 21 days

Median listing price: $238,950, up 6.2% year over year

Millennial buyers make up 43% of new purchase mortgages.

Boise, Idaho (83704)

Ranked sixth in last year’s list, this ZIP code is attracting California residents looking for more affordable housing. Local tech companies like Micron Technology provide good job options, too.

Time on market before selling: 14 days

Median listing price: $289,950, up 5.5% year over year

Millennial buyers make up 28% of new purchase mortgages.

Shawnee, Kansas (66203)

Southwest of downtown Kansas City, this suburb is known for its walkable downtown with boutiques and restaurants along with its low housing costs. 

Time on market before selling: 13 days

Median listing price: $220,050, up 16.4% year over year

Millennial buyers make up 43% of new purchase mortgages.

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Rochester, New York (14609)

Young professionals are flocking to this city on Lake Ontario for job opportunities in education and health care, along with the Wegmans Food Markets, which is headquartered there.

Time on market before selling: 17 days

Median listing price: $125,050, up 13.7% year over year

Millennial buyers make up 43% of new purchase mortgages.

Livonia, Michigan (48154)

A Detroit suburb, Livonia is an easy commute to downtown cultural destinations as well as major employers in the broader metro area.

Time on market before selling: 17 days

Median listing price: $254,950, up 6.2% year over year

Millennial buyers make up 36% of new purchase mortgages.

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Melrose, Massachusetts (02176)

One of the more expensive areas on the list, this charming, gas-lamp lined ZIP code has a strong school system and is close to the area’s high-paying jobs in education, medical and pharma.  

Time on market before selling: 18 days

Median listing price: $629,050, down 1.7% year over year

Millennial buyers make up 43% of new purchase mortgages.

Arlington, Texas (76018)

Situated between Dallas and Fort Worth, Arlington is close to many of the area’s major attractions, including Globe Life Park and AT&T Stadium and biggest employers such as Arlington ISD and the University of Texas at Arlington.

Time on market before selling: 20 days

Median listing price: $215,050, up 7.5% year over year

Millennial buyers make up 34% of new purchase mortgages.

Goffstown, New Hampshire (03045)

Near Manchester, New Hampshire, this ZIP code is a quintessential New England small town with a walkable downtown and historic buildings.

Time on market before selling: 22 days

Median listing price: $325,050, up 4.9% year over year

Millennial buyers make up 43% of new purchase mortgages.

Colorado Springs, Colorado (80916)

This affordable ZIP code is a welcome change to the pricey neighborhoods of Denver, 70 miles away, and features local breweries and beautiful outdoors.

Time on market before selling: 21 days

Median listing price: $245,050, up 2.5% year over year

Millennial buyers make up 34% of new purchase mortgages.