R
hode Islanders can expect a busy year ahead in the local housing market, according to Zillow's latest analysis. The real estate listing website forecasts that the Providence metropolitan area will be the third "hottest market" in the nation this year, based on metrics such as forecasted home value appreciation and projected changes in owner-occupied households.

    This ranking puts Rhode Island's capital city two places higher than last year, indicating a surge in demand. Buffalo topped the list for the first time in back-to-back years, with Zillow attributing its success to relative affordability and low inventory. Skylar Olsen, Zillow chief economist, noted that construction must keep pace with growth to maintain accessible housing options.

    Nationwide, shoppers can expect more homes for sale this year, along with slow price growth. However, mortgage rates are expected to be unpredictable. Indianapolis ranked second behind Buffalo, while Hartford came in fourth, and Philadelphia rounded out the top five. Boston was the only other New England market analyzed by Zillow, ranking 16th.

    Zillow's "hotness" ranking takes into account forecasted home value growth, job growth per new home permitted, and expected growth in owner-occupied households. Buffalo's success can be attributed to its strong job market and lower-than-average home prices and rent costs. Nearby cities like Providence, Hartford, and Philadelphia also rank high due to their relative affordability.

    These cities are among the top five in Zillow's forecast for home value appreciation this year, with Hartford leading the pack at 4.2 percent expected growth. However, home value growth is expected to level out this year compared to previous years' double-digit annual appreciation.