Zillow launched an evaluation this week predicting the nation’s hottest housing markets of 2025, the place sellers have the best benefit.
The warmth rating takes native dwelling worth progress under consideration in addition to how rapidly houses are promoting and job progress per new dwelling.
Buffalo, New York was on the high of the record, for the second yr in a row. Zillow forecasts that the world would be the hottest housing market this yr due to its lower-than-average dwelling costs and powerful dwelling worth progress.
Buffalo additionally has the best variety of new jobs per new houses permitted, which suggests it has the best anticipated demand for housing. New jobs translate to new residents who transfer into an space, growing competitors and residential costs till builders can assemble sufficient homes to fulfill demand.
“Building that retains tempo with an space’s progress stays a vital piece of conserving houses accessible and accessible,” Zillow’s chief economist Skylar Olsen acknowledged in a press launch. “In chilly Buffalo, competitors amongst consumers will stay sizzling, with employment rising far quicker than builders are including houses.”
Zillow forecasted final yr that Buffalo can be a sizzling market in 2024 and was appropriate. The realm was a robust vendor’s market final yr, in accordance with Zillow’s personal market warmth index.
Second on the record is Indianapolis, Indiana. With a typical dwelling worth of $275,639 in 2024, Indianapolis stands out by way of affordability, which Zillow predicts will appeal to potential dwelling consumers this yr.
Third, fourth, and fifth on the record are Windfall, Rhode Island; Hartford, Connecticut; and Philadelphia, Pennsylvania. Zillow says these areas stand out as prime housing markets due to their relative affordability in comparison with the costlier Northeastern areas they border, like New York and Boston.
Here is an inventory of Zillow’s predictions for the highest 10 hottest housing markets within the U.S. in 2025, together with Zillow’s estimates of the standard dwelling worth in 2024 and residential worth progress forecast for 2025 in these areas.
1. Buffalo, NY
Zillow Dwelling Worth Index 2024: $260,537
2025 Dwelling Worth Development Forecast: 2.8%
2. Indianapolis, IN
Zillow Dwelling Worth Index 2024: $275,639
2025 Dwelling Worth Development Forecast: 3.4%
3. Windfall, RI
Zillow Dwelling Worth Index 2024: $484,019
2025 Dwelling Worth Development Forecast: 3.7%
4. Hartford, CT
Zillow Dwelling Worth Index 2024: $363,298
2025 Dwelling Worth Development Forecast: 4.2%
5. Philadelphia, PA
Zillow Dwelling Worth Index 2024: $362,744
2025 Dwelling Worth Development Forecast: 2.6%
6. St. Louis, MO
Zillow Dwelling Worth Index 2024: $250,141
2025 Dwelling Worth Development Forecast: 1.9%
7. Charlotte, NC
Zillow Dwelling Worth Index 2024: $377,450
2025 Dwelling Worth Development Forecast: 3.2%
8. Kansas Metropolis, MO
Zillow Dwelling Worth Index 2024: $299,118
2025 Dwelling Worth Development Forecast: 2.7%
9. Richmond, VA
Zillow Dwelling Worth Index 2024: $368,957
2025 Dwelling Worth Development Forecast: 2.9%
10. Salt Lake Metropolis, UT
Zillow Dwelling Worth Index 2024: $543,324
2025 Dwelling Worth Development Forecast: 2.3%