Buffalo, New York is projected to be the nation’s hottest housing market in 2025, according to Zillow. The city’s competitive nature and strong job growth will drive demand for homes. Indianapolis takes second place, with Philadelphia rounding out the top five.
Zillow’s forecast is based on analysis of home value growth, recent housing market velocity, labor market changes, construction activity, and demographic trends. Baby boomers and millennials are driving the housing market, with homeownership expected to rise in 42 of the 50 largest markets.
The top cooling markets include New Orleans, San Francisco, and Portland. These areas have weak demographic pressures relative to the housing environment. Zillow expects Austin to see a significant increase in homeownership, while Birmingham is expected to experience a decline.
Zillow’s methodology combines data on forecast annual home value appreciation, listing days per home, total non-farm employment, and projected change in owner-occupied households. The final index is an average across metrics, with standardized home price appreciation acceleration down-weighted by half.
With Buffalo at the top of Zillow’s list, it’s clear that this city is a hot spot for housing enthusiasts.
Source: https://www.zillow.com/research/2025-hottest-markets-34691