G
reater Philadelphia has jumped six spots to become the nation's fifth hottest housing market for 2025, according to Zillow. Local real estate experts predict a return to normalcy in the Philadelphia-area market after years of mortgage rate fluctuations and rising home prices.

    Despite this, Zillow forecasts that the market will be hotter than most nationwide. The ranking was determined by metrics such as projected home value appreciation, average listing days per home last year, new jobs to new residential building permits ratio, and forecasted change in owner-occupied households from 2024 to 2025.

    Philadelphia ranks second only to Buffalo in terms of jobs per new homes permitted, with 1.5 new jobs for every home approved for construction. This measure reflects expected demand based on U.S. Bureau of Labor Statistics data. "Philadelphia's strong job market continues to support demand for homes in the area," said Zillow Senior Economist Orphe Divounguy.

    The report also highlights relative affordability as a key characteristic of the hottest housing markets this year and last, suggesting that it remains a powerful force driving demand.