America’s Hottest Housing Markets in Q4 2024

The nation's hottest housing market in the fourth quarter of 2024 was ZIP code 85621 in Nogales, Arizona, a border community near Mexico. This ranking comes from The Business Journals’ latest analysis of the fastest-growing housing markets, using quarterly listing and sales data from Intercontinental Exchange.

Methodology: How the Rankings Were Determined

The rankings are based on sales and pricing momentum rather than just home prices or transaction volume. To be included, ZIP codes had to meet the following criteria:

• Growth in key metrics, including quarter-over-quarter and year-over-year data

• A minimum average sale price of $420,400

• At least 10 sales per quarter

Rather than highlighting the most expensive or most popular markets, the analysis focuses on areas where home values and sales activity are rising the fastest.

Nogales Leads the List

The average sale price in Nogales' 85621 ZIP code was $309,694, which is 62 percent lower than the national average of $805,773.

Sales-price momentum in Nogales sustained the strongest growth over time:

• Over five years, prices increased by 257 percent

• Year-over-year growth was 255 percent

• Quarter-over-quarter growth was 194 percent

  
  

National Trends: Where Home Sales Are Rising Fastest

Despite a slowdown in home sales in late 2024 due to rising mortgage rates and price appreciation, some ZIP codes remained highly competitive.

Arizona remains one of the hottest real estate markets in the country, continuing a trend of significant in-migration during the pandemic. Phoenix has remained a key driver of the state’s real estate surge.

In Florida, ZIP codes 33141 (Miami Beach) and 34228 (Longboat Key/Sarasota) have been consistent magnets for luxury buyers. The average sale price in Longboat Key was $3.3 million, while Miami Beach’s average sale price was $1.8 million—both well above the national average.

See how Zip codes around the nation compare:

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Among the top 10 ZIP codes, the average home sold for $1.7 million, with properties spending an average of 141 days on the market.

Affordability Challenges and Market Pressures in 2025

While home sales are strong in certain ZIP codes, affordability remains a growing issue.

• Mortgage rates have risen from 6.1 percent to nearly 7 percent since October, discouraging many homeowners from selling.

• Only 21 percent of millennials believe they can afford a home in 2025, compared to 52 percent in early 2024.

• The median home price remains at approximately $420,000, yet 68 percent of millennials looking to buy this year want to spend less than $400,000.

Climate Risks and Their Impact on the Housing Market

Beyond financial pressures, climate change is creating new risks for homeowners and could significantly impact home values.

• More than 11.2 million homes in the U.S. are at high risk for flooding.

• Another 4.1 million homes are in areas prone to wildfires.

• A market correction could erase between $1.2 trillion and $1.9 trillion in home value if prices adjust to reflect the growing risks of climate-related disasters.

  
  

As economic conditions and environmental factors continue to shape the housing market, these ZIP codes stand out as the fastest-growing and most resilient in the country.