realestate

Midwest cities top 2025 home‑buying hotspots, Zillow reports

Zillow finds 6 of the top 10 home‑buyer markets this year are in the Midwest, a trend that has persisted for years.

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pringfield, Illinois, ranked ninth among the most sought‑after home markets this year, per Zillow’s latest data.

    Rockford, Illinois, emerged as the leading buyer destination for 2025. The city, home to roughly 150,000 residents and located 90 minutes northwest of Chicago, climbed from second place in 2024 to first in 2025. Other midsize Midwestern hubs—Dearborn, Michigan; Carmel and South Bend, Indiana; Toledo, Ohio—also entered the top ten.

    Zillow gauged market popularity by combining several indicators: online view counts, price appreciation, and sales velocity. The common thread among the most attractive locales is their moderate size, affordability (median home prices below $350,000), and proximity to robust employment centers.

    Senior economist Orphe Divounguy highlighted affordability as the market’s defining narrative over recent years. “The Midwest was already reasonably priced before the pandemic and remains so, even as other regions saw steep price hikes,” he said.

    Andrew Blevins, 35, recounted how he and his wife relocated to Rockford in 2020 after losing jobs in New York City. The monthly mortgage on their three‑bedroom home matched the rent they paid for a one‑bedroom apartment in the city. Blevins represents a growing cohort of transplants drawn to the Midwest’s cost‑effective living and job opportunities. Zillow notes that over 60 % of page views for Rockford homes originate from outside the metro area, a pattern mirrored in other popular Midwestern markets.

    While some downtowns struggle with the “urban doom loop,” many suburbs thrive. Dearborn and Carmel, satellite communities of Detroit and Indianapolis, respectively, attract families with strong schools and a lower cost of living compared to coastal counterparts. Carmel’s population has nearly doubled over the past 25 years, yet it remains a safe, affordable, and family‑friendly environment. Patrick Walters, a long‑time Carmel resident, praised the town’s quality of life, noting that all four of his children now live nearby and that the area is “by far the nicest place we’ve ever lived.”

    Zillow’s rankings mirror broader demographic shifts. The Midwest and Northeast are experiencing heightened demand, whereas the Sunbelt’s growth has slowed. States that previously lost residents—such as Missouri and Wisconsin—are now gaining population, while Illinois, Ohio, and Michigan have seen their outflows decelerate post‑pandemic. In the Northeast, Connecticut’s migration trends have also stabilized.

    In summary, the Midwest’s midsize, affordable cities—especially Rockford—continue to attract buyers seeking value and employment proximity. This trend reflects a national pivot toward regions offering a balanced lifestyle without the high price tags of traditional coastal markets.

Midwest cities ranked as 2025 home‑buying hotspots by Zillow.