Zillow released an analysis this week predicting the nation’s hottest housing markets of 2025, the place sellers have the best benefit.
The warmth rating takes native residence worth progress into consideration in addition to how rapidly properties are promoting and job progress per new residence.
Buffalo, New York was on the prime of the checklist, for the second yr in a row. Zillow forecasts that the realm would be the hottest housing market this yr due to its lower-than-average residence costs and robust residence worth progress.
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Buffalo additionally has the best variety of new jobs per new properties permitted, which implies it has the best anticipated demand for housing. New jobs translate to new residents who transfer into an space, rising competitors and residential costs till builders can assemble sufficient homes to fulfill demand.
“Development that retains tempo with an space’s progress stays a vital piece of retaining properties out there and accessible,” Zillow’s chief economist Skylar Olsen acknowledged in a press launch. “In chilly Buffalo, competitors amongst patrons will stay sizzling, with employment rising far quicker than builders are including properties.”
Zillow forecasted final yr that Buffalo could be a sizzling market in 2024 and was right. The world was a powerful vendor’s market final yr, in line with Zillow’s personal market heat index.
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Second on the checklist is Indianapolis, Indiana. With a typical residence worth of $275,639 in 2024, Indianapolis stands out when it comes to affordability, which Zillow predicts will appeal to potential residence patrons this yr.
Third, fourth, and fifth on the checklist 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.
This is a listing 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 residence worth in 2024 and residential worth progress forecast for 2025 in these areas.
1. Buffalo, NY
Zillow House Worth Index 2024: $260,537
2025 House Worth Progress Forecast: 2.8%
2. Indianapolis, IN
Zillow House Worth Index 2024: $275,639
2025 House Worth Progress Forecast: 3.4%
3. Windfall, RI
Zillow House Worth Index 2024: $484,019
2025 House Worth Progress Forecast: 3.7%
4. Hartford, CT
Zillow House Worth Index 2024: $363,298
2025 House Worth Progress Forecast: 4.2%
5. Philadelphia, PA
Zillow House Worth Index 2024: $362,744
2025 House Worth Progress Forecast: 2.6%
6. St. Louis, MO
Zillow House Worth Index 2024: $250,141
2025 House Worth Progress Forecast: 1.9%
7. Charlotte, NC
Zillow House Worth Index 2024: $377,450
2025 House Worth Progress Forecast: 3.2%
8. Kansas Metropolis, MO
Zillow House Worth Index 2024: $299,118
2025 House Worth Progress Forecast: 2.7%
9. Richmond, VA
Zillow House Worth Index 2024: $368,957
2025 House Worth Progress Forecast: 2.9%
10. Salt Lake Metropolis, UT
Zillow House Worth Index 2024: $543,324
2025 House Worth Progress Forecast: 2.3%
