Growth is coming back to cities as workers return to the office.

As businesses call employees back to the office, more home buyers are moving closer to city centers, according to a new analysis. More home buyers are once again factoring commute times into their homebuying decisions and are moving closer to city centers. Remote work in recent years prompted many to move to more affordable exurbs. Now companies are demanding that workers return to the office, which is driving growth back to the city, according to a report from realtor.com®.

“As many companies continue to call employees back to the office, we’re seeing a surge in home shoppers who are seeking a desirable combination of cost and convenience within commuting distance of major metropolitan areas,” says Danielle Hale, realtor.com®’s chief economist. “In addition to affordable markets, this year’s list also features some higher-priced areas close to large urban cores, which will likely appeal to buyers who are concerned with finding the right mix of size and amenities within reach of a nearby city center.”

The renewed interest in cities marks the first time in five years that the suburbs of major metro areas have made it onto realtor.com®’s list of “hottest ZIP codes.” The list reflects market demand as determined by views of listings on realtor.com®, as well as the number of days listings remain active in an area. Realtor.com® researchers note that its 2023 list reflects growing demand for areas near metro areas that also offer greater affordability.

Source: Realtor® Magazine