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or the second consecutive year, Buffalo, New York, has taken the top spot on Zillow's list of hottest housing markets for 2025, becoming the first market to achieve this distinction. According to Zillow's analysis, hot markets have expanded beyond the Northeast and Great Lakes regions into the Midwest and West, driven by relative affordability and supply that trails demand.
Nationwide, Zillow forecasts steady growth in home values and sales in 2025, with inventory recovering from pandemic lows. However, mortgage rates are expected to remain volatile. Experts predict a 3.8-4% rise in median home sale prices and a 4.2-5.1% increase in home sales next year.
In Buffalo, competition among buyers will remain fierce due to employment growth outpacing new home construction. Zillow's chief economist notes that shoppers nationwide can expect more options for sale and slow price growth, but unpredictable mortgage rates are also on the horizon.
Zillow's rankings consider factors such as local home value growth, job growth, and typical home values in each of the nation's 50 most populous metros. The top 10 hottest housing markets of 2025 include Buffalo, Indianapolis, Providence, Hartford, Philadelphia, St. Louis, Charlotte, Kansas City, Richmond, and Salt Lake City.
Buffalo secured its second consecutive number one spot due to strong job and wage growth, relative affordability, and demand that outpaces supply. Its relatively low home prices and rent costs have bolstered demand, making it an attractive alternative to more expensive cities like New York City or Boston. Indianapolis took the second spot thanks to a strong forecast for home price growth this year.
Cities that made significant gains include Virginia Beach (No. 13 in 2025, up 23 spots from 2024), Oklahoma City (No. 17 in 2025, up 21 spots from 2024), and Birmingham (No. 20 in 2025, up 21 spots from 2024). Cities that saw the biggest losses include Memphis (No. 42 in 2025, down 30 points from 2024), Las Vegas (No. 35, down 23 points from 2024), Tampa (No. 29, down 19 points from 2024), and San Francisco (No. 49, down 19 points from 2024).
