Why Does Home-Cost Use 5-digit Zip Codes?

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Why did we develop and maintain this database to adjust costs and other data at a 5-digit zip code level? Because we have to in order to gain regional cost accuracy! Regional differences in material and labor costs alone can create variances in construction costs of 25% to 40% and more!

For example: ZIP Code 90210 is Beverly Hills, CA , and 90220 is Compton, CA.

Another example shown in the image above involves ZIP Code 49735 which is Gaylord, MI, a town in the center of Michigan. Only one digit apart is zip code 49736, Goetzville, MI, a town in the Upper Peninsula of Michigan.