The suburbs have been running hotter than the urban real estate market since last summer.

Home Values in Suburban Zip Codes Outpacing Urban Home Values

Fueled by the shift to remote work, Americans have been looking for greener locations and larger homes since July 2021.  The result?  Home price growth in suburban zip codes has been climbing faster than in urban areas.

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Zillow economist Nicole Bachaud said, “While urban home value gains have continued to accelerate, the suburbs are even hotter, showing just how strong demand is for limited suburban inventory.”

While some urban areas remain hotter than hot (San Jose CA and Austin TX), other urban areas such as Philadelphia (which includes Wilmington DE) have seen the pace of home value plunge while their suburban and rural zip codes have seen spiking home price growth.

Top 10 Suburban Zip Codes Outpacing Home Prices in Urban Areas

(Change in price of typical home since July 2021)

Metro                         Urban                Suburban          Difference

US                               $61,671            $66,490            $4,819

San Francisco           $193,540          $278,806          $85,266

Miami                        $68,589            $103,244          $34,655

Denver                       $99,965            $133,444          $33,479

Philadelphia              $18,846            $51,069            $32,223

Los Angeles               $137,475          $169,508          $32,033

Detroit                       $10,316            $39,119            $28,803

Sacramento              $84,818            $112,775          $27,957

Seattle                       $119,725          $146,815          $27,090

Jacksonville               $56,407            $82,769            $26,362

Las Vegas                  $88,477            $113,652          $25,175

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