ZIP Code 23111 Housing Market

📝 Local Market Notes

The housing market in ZIP code 23111, located in Hanover County, Virginia, exhibits a consistent and robust upward trajectory. The FHFA House Price Index (HPI) reveals a steady appreciation pattern over the last five years, rising from 187.01 in 2021 to 260.89 in 2025. This progression indicates an average annual growth rate that significantly outpaces broader regional trends. Specifically, the ZIP code’s year-over-year increase of +6.71% in 2025 contrasts sharply with the county’s +3.64% and the state’s +3.03%. This positive divergence suggests that 23111 is experiencing localized demand pressures that exceed general market conditions, likely driven by specific neighborhood amenities or demographic shifts within the Hanover County sub-market. Contextual analysis of the parent county’s ACS 5-Year Estimates provides insight into the sub-market character. With a median home value of $400,400 and a median household income of $112,805, the area supports a strong owner-occupancy rate of 82.1%. The current HPI level of 260.9, which is 2.6 times the 2000 baseline, indicates a mature market where equity accumulation has been substantial. Compared to nearby ZIP 23024, which holds a higher HPI of 311.1, ZIP 23111 appears to represent a mid-tier segment of the county’s housing stock, positioned between entry-level options and the premium luxury tier. The median gross rent of $1,591 per month further underscores the area’s affordability relative to the high-end segments of the region. For prospective buyers and residents, the data highlights a market characterized by sustained appreciation and high ownership stability. The significant outperformance of the state and county averages signals that properties in 23111 have retained value effectively during recent economic cycles. However, with the national 30-year mortgage rate at 7.40%, the high price trajectory necessitates careful budgeting for those entering the market. The combination of high income levels and low rental penetration suggests a community-oriented environment where long-term residency is common. Buyers should anticipate continued competitive dynamics given the historical consistency of price growth, while recognizing that the sub-market remains distinct from the higher-priced adjacent areas.

Based on FHFA House Price Index data.