Stop Using Zip Codes for Geospatial Analysis

The use of zip codes for geospatial analysis has several limitations, including not representing real boundaries but rather a collection of routes, and masking underlying insights that may lead to bad outcomes. Zip codes are often used due to their familiarity and granular enough view of the world, but this can lead to issues such as homes being listed in multiple zip codes, or areas with high concentrations of restaurants and bars driving Airbnb supply. Using real-world addresses, Census units, or spatial indexes like H3 and quadkey can provide a more accurate and meaningful analysis. These alternatives can help improve insights and create more effective outcomes by discarding analysis at the zip code level and using appropriate spatial scales.

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