Zillow recently published an analysis predicting the top housing markets of 2025, where sellers will have a significant advantage. The ranking considers factors such as local home value growth, the speed at which homes are selling, and job growth per new home.
For the second year in a row, Buffalo, New York has claimed the top spot on the list. With lower-than-average home prices and strong home value growth, Zillow forecasts that Buffalo will be the hottest housing market in 2025. Additionally, Buffalo has the highest number of new jobs per new homes permitted, indicating a strong demand for housing in the area.
According to Zillow’s chief economist, Skylar Olsen, keeping up with construction to match the area’s growth is crucial for maintaining availability and accessibility of homes. Despite the chilly weather in Buffalo, competition among buyers is expected to remain intense as employment continues to outpace the construction of new homes.
Last year, Zillow correctly predicted Buffalo’s status as a hot market in 2024. The area was a strong seller’s market according to Zillow’s market heat index. Indianapolis, Indiana takes the second spot on the list due to its affordability, with a typical home value of $275,639 in 2024.
Providence, Rhode Island; Hartford, Connecticut; and Philadelphia, Pennsylvania round out the top five housing markets for 2025. These areas are highlighted for their affordability compared to neighboring expensive cities in the Northeast.
Here is a list of Zillow’s top 10 hottest housing markets in the U.S. for 2025, along with their corresponding home value data for 2024 and forecasted home value growth for 2025.
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