With suburban home value growth surpassing that of urban homes, the most popular areas appear to be outside the city. According to Zillow, all 10 of its current top markets are located roughly 30 minutes from the nearest metro center. Among them, eight have a typical home value higher than in their nearby city.
And although no Chicagoland suburbs cracked the top of Zillow’s list, Elk Grove was identified as having the sharpest growth with home values increasing 9.7%, quarter over quarter.
Analyzing data from the start of 2022, Zillow looked at increases in home value as well as average daily page views, active for-sale listings per housing units and recent inventory growth to determine the hottest markets. They are as follows:
1. Woodinville, Wash., near Seattle
2. Burke, Va., near Washington, D.C.
3. Highlands Ranch, Colo., near Denver
4. Westchase, Fla., near Tampa
5. Edmonds, Wash., near Seattle
6. Yorba Linda, Calif., near Los Angeles
7. Johns Creek, Georgia, near Atlanta
8. Tustin, Calif., near Los Angeles
9. Ballwin, Mo., near St. Louis
10. Golden, Colo., near Denver
That surging suburban demand are generally attributed to the rise of remote work. “The most popular markets so far this year paint a picture of how remote work has changed the U.S. housing landscape,” Zillow economist Nicole Bachaud said of the findings. “Research suggests the rise of remote work is responsible for roughly half of home price growth during the pandemic. How many employers continue to allow this flexibility for employees to live where they choose will go a long way toward determining which markets are most in demand in the future.”