Peabody named hottest US housing market as buyers face steep premiums
With median prices nearly 20 per cent below the Boston metro average, Peabody has topped the 2026 Hottest ZIP Codes ranking, driven by supply constraints and proximity to major employment hubs.
Peabody, Massachusetts, has been identified as the most competitive housing market in the United States, according to Realtor.com’s 2026 Hottest ZIP Codes report. The designation for ZIP code 01960 reflects a market where homes spent an average of just 20 days on the market during the first half of the year, significantly faster than the national average of 57 days.
The ranking is driven by a combination of factors including limited new construction supply, relative affordability compared to the broader Boston metropolitan area, and proximity to major employers. While the median home price in Peabody reached $667,000 in June, it remains nearly 20 per cent below the Boston metro average, attracting buyers seeking value within commuting distance of the city.
Competition in the area is fierce, with buyers frequently required to offer approximately $50,000 above the asking price to secure a property. The report notes that buyers in the top 10 hottest ZIP codes are bringing stronger financial profiles than the national norm, prioritising space and established character over affordability alone.
Montclair, New Jersey, and Sewell, New Jersey, rounded out the top three rankings. In Montclair, homes spent about 18 days on the market with a median listing price of $1,050,000, while in Sewell, properties spent 25 days on the market with a median price of $426,000.
The rankings are calculated based on market demand, measured by unique viewers per property on Realtor.com, and the number of days a listing spends on the market. This marks the first time Peabody has earned the top distinction, although it had previously ranked in the top 10 in 2018 and 2021.
Nationally, the typical home sold for about 2.3 per cent below its list price in the first half of 2026, indicating that sellers are still conceding ground to close deals in many areas. However, in highly competitive markets like Peabody, buyers must often pay a premium to succeed.
Affordability remains a significant challenge across the broader market. With mortgage rates averaging 6.69 per cent for a 30-year fixed-rate mortgage as of early August, and existing home prices up 54 per cent since 2020, households would need an income of more than $120,000 to afford monthly payments on a median-priced home.
