Inside the small Midwest town which is home to one of the hottest housing markets in the US due to a unique tax perk

A small Midwestern town that attracts homebuyers with its affordable homes and beautiful surroundings. Plus, it hasn’t collected property taxes in nearly forty years.

Ballwin, Missouri, located about a half hour drive from St. Louis, is home to approximately 31,000 people.

But the area is among the most popular zip codes in the U.S. because of its unique tax advantage, according to Makelaar.com.

Since 1987, Ballwin has not charged municipal property taxes, which benefits both current residents and potential buyers by lowering the overall cost of home ownership.

Instead, municipal services are funded through sales taxes, utility gross revenue taxes, and recreation revenues.

Property taxes are paid by the owner of real estate to the taxing authority at the regional or local level. This tax is used for infrastructure improvements, public services, and local education.

Taxes vary by state and province and the amount is based on the assessed value of a property.

For example, according to the Tax Foundation, New Jersey has the highest property taxes of any state, with an effective tax rate of 2.23 percent.

Realtor.com found that Ballwin’s lack of property taxes may be especially attractive to retirees on fixed incomes.

For other buyers, the lack of additional taxes may mean they can purchase a larger property within their budget.

Homes in Ballwin are slightly more expensive than surrounding areas, but are still generally below the national average.

According to Realtor.com, the average asking price in the neighborhood is $409,000, which is about $35,000 less than the $439,500 that was the national average for July.

As a result, houses in the city are selling like hot cakes.

On average, homes stayed on the market for just 16 days before being acquired by a buyer in the first half of this year.

That’s more than a month (42 days) shorter than the average for the US as a whole.

Most buyers seeking entry into Ballwin’s market come from the surrounding area, but 41 percent come from further afield, including a significant portion from Chicago.

In addition to its small-town charm, beautiful surroundings, low crime rate and affordability, Ballwin is also a short distance from St. Louis.

Hannah Jones, senior economist at Realtor.com, noted that unemployment rates in the St. Louis metro area are lower than the national average, “giving potential buyers a strong economy nearby.”

Ballwin is attractive to “buyers willing to pay for the right combination of size and amenities within walking distance of the office,” she added.

‘The shift towards more office-based working continues, meaning many buyers are looking for a desirable combination of convenience and lifestyle benefits.’

In addition to its small town charm, beautiful surroundings, low crime rate and affordability, Ballwin is also within commuting distance of St. Louis

Ballwin’s lack of property taxes could be especially attractive to retirees on fixed incomes, Realtor.com found

The average asking price in Ballwin is $409,000, which is about $35,000 less than the $439,500 national average for July

Ballwin is located about half an hour outside of St Louis and has a population of approximately 31,000

Ballwin ranks second in Realtor.com’s 2024 list of most popular zip codes in the U.S., behind another Midwestern city.

Gahanna, a leafy suburb of Columbus, Ohio, took first place for the second year in a row.

Gahanna is a town of only 35,000 people that is attracting more and more home buyers who are making offers at a rapid pace.

The area features affordable homes, with an average asking price of $345,000, and is also within easy reach of the amenities of the large city of Columbus, where several billion-dollar companies, such as Intel and Google, are expanding their operations.

“The Midwest has been popular for a long time, as the higher cost of purchasing a home has concentrated demand in more affordable locations,” Jones said.