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 development under consideration in addition to how shortly properties are promoting and job development per new dwelling.
Buffalo, New York was on the prime of the checklist, 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 development.
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, growing competitors and residential costs till builders can assemble sufficient homes to fulfill demand.
“Building that retains tempo with an space’s development stays a vital piece of retaining properties out there and accessible,” Zillow’s chief economist Skylar Olsen said in a press launch. “In chilly Buffalo, competitors amongst patrons will stay scorching, with employment rising far sooner than builders are including properties.”
Zillow forecasted final yr that Buffalo could be a scorching market in 2024 and was right. The realm was a robust vendor’s market final yr, in accordance with Zillow’s personal market warmth index.
Second on the checklist is Indianapolis, Indiana. With a typical dwelling worth of $275,639 in 2024, Indianapolis stands out when it comes to affordability, which Zillow predicts will appeal to potential dwelling 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 dearer Northeastern areas they border, like New York and Boston.
This 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 everyday dwelling worth in 2024 and residential worth development 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%