For the second year in a row, Buffalo, New York, has been dubbed the “hottest” real estate market out of the 50 most populous U.S. cities, according to online brokerage Zillow. The top 5 hottest housing markets for 2025 are those with the strongest growth in home values and buyer demand, with rankings considering forecasted price increases, how quickly homes sell, inventory shortages, rising rents and local job and population growth.
According to Zillow’s data, Buffalo’s affordability is a major reason for its top ranking, with an average home value of $223,812, well below the U.S. average of $356,585. Other factors contributing to its top ranking include Buffalo’s strong job growth, which has outpaced new construction since the pandemic, leading to increased competition and rising home prices.
The U.S. housing market is expected to grow more slowly in 2025, but the region’s strong economy and tight inventory of homes have kept Buffalo at the top of Zillow’s rankings. Indianapolis, Indiana; Providence, Rhode Island; Hartford, Connecticut; and Philadelphia round out the top 5 hottest markets.
