What the history of ZIP codes reveals about the most in-demand neighborhoods in the US

Looking to buy a home in America’s hottest real estate market? Pack your winter coat—you might be heading to the Northeast or the Midwest.

Spokeo analyzed data from Realtor.com to explore the most sought-after United States ZIP codes for homebuyers. Realtor.com’s rankings assess market demand based on unique property views and pace of home sales from January to June 2024, selecting the top ZIP code per metropolitan area.

According to Realtor.com’s 2024 Hottest ZIP Codes report, the most coveted ZIP codes are found in metropolitan areas in the Northeast or Midwest, like Columbus, Ohio, and Rochester, New York. As Southern and Western markets have become more expensive, buyer interest has shifted to Midwest and Northeast locations, which took up three and seven of the top 10 hottest ZIP code spots, respectively.

Many of the top ZIP codes in these regions offered better value and affordability for buyers with lower median list prices than the surrounding area or the broader U.S. housing market.

However, long before ZIP codes became critical indicators in real estate, they were designed to solve a much simpler problem: mail delivery.

The origins of the ZIP code

In 1963, the U.S. Postal Service introduced the Zone Improvement Plan Code system, and what began as a way to streamline postal processes would eventually reshape American business and culture.

The ZIP code system divided the U.S. into 10 zones, with each digit representing a location—from regional sorting centers to sectional subdivisions—allowing precise identification of an address within a few city blocks.

However, the American public was initially reluctant to adopt the ZIP code system, which was perceived as a hassle. A letter writer not only had to memorize their own ZIP code but remember (or spend time looking up) the codes for the recipient of every letter they wrote.

Enter Mr. Zip, a cartoon character created by the Post Office Department, who appeared in ads emphasizing the ease and speed of the new ZIP system. A catchy jingle, sung by Ethel Merman to the jingle of “Zip-A-Dee-Doo-Dah,” also helped the public to accept the new numbering system. With ZIP code usage reaching 86% by 1970, per the National Postal Museum, just seven years after its introduction, the marketing campaign was deemed a success.

How ZIP codes have evolved

As Americans embraced the new system throughout the 1970s, businesses began recognizing these codes as more than just mail sorters; they were treasure troves of consumer data.

According to the 1967 annual report of the Postmaster General, industry and government agencies quickly saw the potential of ZIP codes for targeted marketing and geographic analysis. For example, the report noted that an Ohio gas company analyzed stockholder concentrations by ZIP code, while some insurance companies assigned accident reports and claims investigators by ZIP codes.

In 2000, the Census Bureau introduced ZIP Code Tabulation Areas, allowing new analyses of demographics, economic conditions, and housing trends by associating ZIP code areas with census data.

This wealth of localized data gave rise to the marketing strategy of “geotargeting,” so retailers could now promote products to consumers based on regional preferences. At the same time, service providers could offer location-specific deals. Domino’s, for example, uses ZIP code data to send hyperlocal marketing promotions and offers to customers based on their location.

Banks also incorporate ZIP codes in their lending algorithms to assess neighborhood stability and loan risks—a practice that has raised concerns about discrimination.

ZIP codes also play a significant role in understanding broader social factors, like health and socioeconomic outcomes.

A 2019 Harvard Medical School study examined the health outcomes of identical twins and siblings across the U.S. and found that, in some cases, conditions like morbid obesity were more strongly influenced by one’s environment than their genes and family medical history.

In real estate, ZIP codes took on a new significance, often serving as shorthand for a neighborhood’s desirability or exclusivity.

Certain ZIP codes, like 90210 in Beverly Hills, California—famously associated with the ’90s teen show “Beverly Hills, 90210″—have become synonymous with luxury and exclusivity.

A home’s ZIP code plays a key role in determining its market value, as it reflects the reputation and appeal of the surrounding area, influencing property prices and attracting specific types of buyers.

Read on to learn about the top ZIP codes heating up the real estate market in 2024.

#10. Macungie, Pennsylvania (18062)

– Metropolitan area: Allentown metro area
– Viewers per property: 2.7x the U.S. average
– Median days on the market: 16
– January to June 2024 median listing price: $462,000

#9. Highland, Indiana (46322)

– Metropolitan area: Chicago metro area
– Viewers per property: 3.3x the U.S. average
– Median days on the market: 21
– January to June 2024 median listing price: $250,000

#8. Westfield, Massachusetts (01085)

– Metropolitan area: Springfield metro area
– Viewers per property: 5.2x the U.S. average
– Median days on the market: 20
– January to June 2024 median listing price: $347,000

#7. Leominster, Massachusetts (01453)

– Metropolitan area: Worcester metro area
– Viewers per property: 4.2x the U.S. average
– Median days on the market: 21
– January to June 2024 median listing price: $462,000

#6. Mount Laurel, New Jersey (08054)

– Metropolitan area: Philadelphia metro area
– Viewers per property: 3.3x the U.S. average
– Median days on the market: 18
– January to June 2024 median listing price: $385,000

#5. Rochester, New York (14609)

– Metropolitan area: Rochester metro area
– Viewers per property: 2.9x the U.S. average
– Median days on the market: 8
– January to June 2024 median listing price: $151,000

#4. Basking Ridge, New Jersey (07920)

– Metropolitan area: New York metro area
– Viewers per property: 3.5x the U.S. average
– Median days on the market: 16
– January to June 2024 median listing price: $967,000

#3. Salem, Massachusetts (01970)

– Metropolitan area: Boston metro area
– Viewers per property: 3.6x the U.S. average
– Median days on the market: 16
– January to June 2024 median listing price: $596,000

#2. Ballwin, Missouri (63021)

– Metropolitan area: St. Louis metro area
– Viewers per property: 3.5x the U.S. average
– Median days on the market: 16
– January to June 2024 median listing price: $409,000

#1. Gahanna, Ohio (43230)

– Metropolitan area: Columbus metro area
– Viewers per property: 4.3x the U.S. average
– Median days on the market: 11
– January to June 2024 median listing price: $345,000

Story editing by Natasja Sheriff Wells. Copy editing by Paris Close. Photo selection by Lacy Kerrick.

This story was produced by
Spokeo and was produced and
distributed in partnership with
Stacker.