Why are these ZIP codes in Virginia the most expensive?

In November 2024, the Virginia housing market report revealed the most expensive ZIP codes based on Zillow's home value index, which monitors 758 ZIP codes across the state. The analysis took into account the latest median home values and found northern Virginia dominating the list. ZIP code 22066 emerged as the priciest area, with its median home value surging from approximately $1.058 million in November 2019 to over $1.571 million in November 2024, showcasing a significant growth in real estate prices. The second most costly ZIP code, 20197, located farther up the Potomac near the West Virginia border, saw a staggering 61.2% increase in five years, climbing from $759,473 to $1.224 million. Despite being more rural, its property market remained competitive due to increased demand for homes with more space. The results indicate that wealthier households are influencing market values, though 20197 reported a mean household income only slightly higher than its median. Following closely, ZIP code 22207 displayed similar trends with a 6.3% growth in housing values, reflecting the general uptick across the premium locations in northern Virginia. The proximity to Washington D.C. undoubtedly plays a significant role in attracting high-income residents to these areas. The price escalations suggest a continuous interest in affluent communities, where home values are propelled by desirable amenities and exceptional local school systems. Ultimately, this report identifies a broader trend in the Virginia real estate market, especially in affluent areas where home prices transcend the $1 million mark. As prices rise, these ZIP codes represent the increasing cost of living in attractive regions. Overall, the data underscores the continued desirability of Virginia's northern neighborhoods for prospective homeowners, with an emphasis on suburban growth coupled with urban conveniences.