The Houston suburbs may be hot, but the Lone Star State dominated the list, with almost half of the hottest zip codes for 2023.
By Janet MirandaJan 5, 2024
With housing prices cooling in the Houston area, buyers flocked to the suburbs in 2023 with Cypress and Katy topping the list of “hottest zip codes” in the country, according to an Opendoor report released Thursday. But while the Houston ‘burbs are heating up the housing market – Texas dominated the list, with nine of the top 20 hottest zip codes last year.
The study was based on the number of homes that went into contract within 90 days of listing, using Multiple Listing Service (MLS) data.
The report showed that prospective homebuyers are looking for areas filled with amenities but without the congestion of the city. Cypress’ zip code (77433) jumped to the top of the list last year, rising six spots from its #7 place on the list in 2022. In Katy, zip code 77493 took the #2 spot, jumping one spot on the list and unseating Clarksville, Tennessee, which was at the top of the list last year.
“Many of these areas have more opportunity than meets the eye,” the Opendoor report said. “They have smaller populations than cities, but are growing rapidly because they are accessible to major metros. And they are in areas some wouldn’t expect to look.”
Out of the 20 neighborhoods where people bought homes the fastest listed in Opendoor’s report, nine Texas neighborhoods make the list, confirming that the mass exodus to Texas continues. Last year, the U.S. Census Bureau released a report that showed Californians in 2022 moved to Texas at more than double the number that Texans are moving to the Golden State.
Park Row’s zip code 77449, located near Katy, made its first appearance on the list at the #20 spot. The study said homebuyers are looking for ready-to-move-into places that do not need major renovations. Price also continues to be a major concern, with buyers and sellers keeping an eye on interest rates, according to the study.
The report also discovered some “hidden gem” zip codes, or under-the-radar neighborhoods that saw a rise in listings in 2023. Rosenberg (77471), another Houston-area suburb was listed among Opendoor’s “hidden gems” areas, with homes listed between $400-000 – $600,0000. Marble Falls, Texas (78654) and Bulverde, TX (78163) also made the list of “hidden gem” zip codes.
Overall, approximately 3.79 million homes were purchased last year in the U.S., even while mortgage rates reached their highest level over the last two decades.