For the second year in a row, Buffalo, New York, has secured the top spot on Zillow’s list of the hottest housing markets for 2025, earning the distinction of being the first market to secure the number one ranking in back-to-back years.
According to Zillow’s analysis, which predicts the housing markets that will be the most competitive for buyers in the coming year, hot markets have spread from the Northeast, Great Lakes and South regions into the Midwest and West. The top factors that go into creating a “hot” market are relative affordability and supply that trails demand, says the analysis.
Nationwide, Zillow forecasted relatively steady growth for both home values and sales in 2025 and inventory that should be recovering from the pandemic. However, mortgage rates are expected to remain somewhat volatile.
Experts from Redfin and Fannie Mae and Pulsenomics LLC told USA TODAY in December they expect a 3.8-4% rise in the median home sale price and a 4.2-5.1% bump in home sales in 2025. They also predicted mortgage rates will continue to hover in the high 6% range.
“Construction that keeps pace with an area’s growth remains a crucial piece of keeping homes available and accessible. In chilly Buffalo, competition among buyers will remain hot, with employment growing far faster than builders are adding homes,” said Skylar Olsen, Zillow’s chief economist, in a statement. “Shoppers nationwide should see more options for sale than in recent years, along with slow and steady…
