These will be the hottest housing markets of 2025, according to Zillow
FILE-A For Sale sign hangs in front of a house in Patchogue, New York, on June 1, 2024. (Photo by Steve Pfost/Newsday RM via Getty Images)
Consumers shopping for a new home may find some hidden gems in specific markets in the U.S. based on a new report from Zillow.
The online real estate marketplace released its list of the hottest housing markets this year using criteria like projected home value growth, rapid changes in the housing market, home construction activity, and the number of homeowner households.
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In the report, Zillow also ranked the country’s 50 most populous cities using internal home value growth, how fast the houses are selling, and job growth in those locations.
Buffalo ranks as the hottest housing market this year, followed by Indianapolis, Providence, Rhode Island, Hartford, Connecticut, and Philadelphia to complete the top five.
Top 10 hottest housing markets
- Buffalo
- Indianapolis
- Providence, Rhode Island
- Hartford, Connecticut
- Philadelphia
- St. Louis
- Charlotte
- Kansas City, Missouri
- Richmond, Virginia
- Salt Lake City, Utah
A closer look at the top housing markets
Buffalo
Buffalo was considered the hottest market in 2024, and Zillow expects that trend to continue this year. The city’s affordable home prices are predicted to increase housing growth by an extra 3% in 2025, per the report.
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According to Zillow, new jobs can result in an influx of new residents, and it increases competition and raises prices unless builders can match the housing demand. Buffalo also has a strong job market, which can attract new residents looking for a home.
Indianapolis
Indianapolis’s second-place rank is credited to its strong home price forecast for 2025, which is expected to be greater than the appreciation it had last year. Zillow reported that the city has a rising outlook for home value appreciation, increasing from 2.8% annual appreciation in 2024 to 3.4% in 2025.
Providence, Rhode Island
Providence, Rhode Island offers consumers searching for a home another option, with the area predicted to experience home growth of more than 3% and more job growth this year, which could attract more new residents to the city seeking housing.
Zillow noted in its report that 42 of the 50 largest markets are expected to see homeownership increase in 2025 with the housing market projected to experience the biggest growth in the for-sale market being Austin, Texas with roughly 8.9% more people owning homes in the area.
To see Zillow's report and complete ranking of cities, click here.