Deciding where to live affects all aspects of your life. From job opportunities to the cost of living, it’s not a choice to be made lightly. Luckily, real estate experts, like those at Zillow, analyze markets across the country, looking at housing demand, growth, and quality of life indicators. Every year the outlet releases its predictions for the hottest housing markets of the year, and for the first time ever, there’s a repeat. Buffalo, New York, is the first place ever to retain the title two years in a row. Thanks to a thriving job market, happy citizens, and plenty of new construction, the northeastern city has become as popular as its fan-favorite NFL team.
“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,” Skylar Olsen, Zillow's chief economist, says. “Shoppers nationwide should see more options for sale than in recent years, along with slow and steady price growth.” That’s the good news, but Olsen warns that mortgage rates will remain unpredictable for the foreseeable future.
Whether you’re looking for a lower cost of living, a fresh career, or a balance between city living and suburban quiet, Zillow’s hottest markets have it all. Read on for the top five on their list, including the reigning champ: Buffalo, New York.
5. Philadelphia, Pennsylvania
A nearby alternative to New York City, Philadelphia is seeing a boost in both demand and home value as we enter 2025. The fifth hottest market of the year, Zillow predicts Philadelphia will continue to see growth with a 4.6 percent year-over-year home value increase. The area’s Zillow Home Value Index (the typical home value in a particular part of the country) is relatively affordable for the Northeast at $362,744.
4. Hartford, Connecticut
Leading Zillow’s hottest markets with the highest expected home value growth of 4.2 percent, Hartford is a budding area for younger families and retirees alike. The capital city of Connecticut, Hartford has seen a sharp decrease in housing inventory, 68 percent, which indicates crazy buyer demand for properties.
3. Providence, Rhode Island
A quaint capital city with abundant history and art and a big student population, Providence is on the rise in terms of buyer demand and home value. Zillow considers this city a welcome alternative to more expensive New York and Boston, which has led to its increase in popularity. The typical home price here is $484,019, and the city has a 3.7 percent forecasted growth rate.
2. Indianapolis, Indiana
The one outlier in this year’s Northeast-heavy list, Indianapolis is forecasted to be the second hottest market of 2025. Indiana’s capital city is known for its basketball, its automobile racing, and its robust museums. According to Zillow, “only Indianapolis has a rising outlook for home value appreciation, increasing from 2.8 percent annual appreciation in 2024 to 3.4 percent in 2025.”
1. Buffalo, New York
Known for its overly passionate sports fans (aka the Bills Mafia), Buffalo is a surprisingly trendy metro area. Lower-than-average home costs and rent prices are drawing in younger generations as residents. According to Zillow, Buffalo also has the most new jobs per new home permitted (built), a major measure of demand for the area. Zillow forecasted the area to be the hottest market of 2024, and it is holding onto that title as we enter 2025.
Kate McGregor is the former Digital Editor at House Beautiful, where she wrote countless stories on home renovation costs, design inspiration, and plant care. After years of experience writing commerce and search-optimized content for brands like Domino, Real Simple, and Architectural Digest’s Clever, Kate developed a passion for uncovering the personal stories that often inspire people’s spaces. She previously worked as the Assistant Market Editor at ELLE Decor where she identified top products and brands in the industry and interviewed emerging designers on their thoughts on the latest interior design trends. Kate holds a bachelor’s degree from Belmont University. When not researching the specificities of begonia plant care, you can find Kate scouring vintage markets for the ideal wrought-iron chair, knitting yet another cardigan, or reading historical nonfiction.
