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Zillow has unveiled its analysis for the hottest housing markets in 2025, indicating where sellers might find the most advantageous conditions for selling their homes. This evaluation incorporates factors such as local home value appreciation, the pace of home sales, and job growth relative to new housing developments.
For the second consecutive year, Buffalo, New York, has secured the top position on this list. Zillow attributes Buffalo’s dominance to its relatively low home prices combined with a robust rate of home value growth, making it an appealing market for buyers.
The city also records the highest number of new jobs relative to homes being built, suggesting a surging demand for housing. An influx of new employment opportunities typically translates into more residents, which can drive up competition and subsequently, home prices, until supply can align with demand.
Zillow’s chief economist, Skylar Olsen, emphasized the need for timely construction in growing areas, stating, “Construction that keeps pace with an area’s growth remains a crucial piece of keeping homes available and accessible. In chilly Buffalo, competition among buyers will remain hot, with employment growing far faster than builders are adding homes.”
Last year, Zillow accurately projected that Buffalo would emerge as a hot market in 2024, and the data substantiates this claim, indicating that it was indeed a strong seller’s market, as verified by Zillow’s market heat index.
The second-ranked city, Indianapolis, Indiana, presents a typical home value of $275,639 for 2024, bolstered by its affordability. Zillow anticipates this financial accessibility will attract a wave of potential buyers in the coming year.
The following cities—Providence, Rhode Island; Hartford, Connecticut; and Philadelphia, Pennsylvania—occupy the third, fourth, and fifth positions, respectively. These markets are emerging as preferable housing options primarily due to their affordability compared to neighboring higher-priced Northeastern areas such as New York City and Boston.
Below is a summary of Zillow’s top 10 hottest housing markets in the United States for 2025, including projected home values for 2024 and expected growth rates for 2025:
1. Buffalo, NY
Zillow Home Value Index 2024: $260,537
2025 Home Value Growth Forecast: 2.8%
2. Indianapolis, IN
Zillow Home Value Index 2024: $275,639
2025 Home Value Growth Forecast: 3.4%
3. Providence, RI
Zillow Home Value Index 2024: $484,019
2025 Home Value Growth Forecast: 3.7%
4. Hartford, CT
Zillow Home Value Index 2024: $363,298
2025 Home Value Growth Forecast: 4.2%
5. Philadelphia, PA
Zillow Home Value Index 2024: $362,744
2025 Home Value Growth Forecast: 2.6%
6. St. Louis, MO
Zillow Home Value Index 2024: $250,141
2025 Home Value Growth Forecast: 1.9%
7. Charlotte, NC
Zillow Home Value Index 2024: $377,450
2025 Home Value Growth Forecast: 3.2%
8. Kansas City, MO
Zillow Home Value Index 2024: $299,118
2025 Home Value Growth Forecast: 2.7%
9. Richmond, VA
Zillow Home Value Index 2024: $368,957
2025 Home Value Growth Forecast: 2.9%
10. Salt Lake City, UT
Zillow Home Value Index 2024: $543,324
2025 Home Value Growth Forecast: 2.3%
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