A cold front is making its way across the U.S., but Zillow is looking to warm things up with its annual report on the nation’s hottest housing markets. Each year, we patiently await this news, because if at any point in 2025 we decide to up and move, this list is the first place we’d look. And for the second year in a row, all signs point toward Buffalo, New York, being in serious demand.
Analyzing the country’s 50 most populous metros, Zillow’s “hotness” ranking is determined by its forecast for local home value growth, how quickly homes are selling in a particular area, job growth, and expected growth in owner-occupied households. Not only does Buffalo boast relatively affordable homes and a shrinking inventory, it has the most new jobs per new home permitted—a measure of expected demand, according to Zillow. (New jobs usually indicate incoming residents, which drives up prices unless builders can match the additional demand).
“Construction that keeps pace with an area’s growth remains a crucial piece of keeping homes available and accessible,” says Skylar Olsen, Zillow’s chief economist. “In chilly Buffalo, competition among buyers will remain hot, with employment growing far faster than builders are adding homes.”
Here are the top 10 hottest housing markets for 2025, including the average home value in that region:
- Buffalo, N.Y. ($260,537)
- Indianapolis, I.N. ($275,639)
- Providence, R.I. ($484,019)
- Hartford, C.T. ($363,298)
- Philadelphia, P.A. ($362,744)
- St. Louis, M.O. ($250,141)
- Charlotte, N.C. ($377,450)
- Kansas City, M.O. ($299,118)
- Richmond, V.A. ($368,957)
- Salt Lake City, U.T. ($543,324)
Not listed? Virginia Beach, which jumped over 23 markets to the number 13 spot from last year. The coastal town is rising fast in the ranks, primarily driven by job growth that has outpaced new home permitting. Our advice: Run—don’t walk!—if you want to hit the real estate jackpot.
