According To Zillow, Buffalo Is The Hot New Housing Market In 2025

The Buffalo Bills are a hot pick to win it all in the NFL this year. And now Buffalo, N.Y., is the nation’s hottest housing market in 2025, with Indianapolis, Providence, Harford, and Philadelphia rounding out the top five. Buffalo was also predicted to be the hottest market of 2024, making it the first market to hold the title in back-to-back years. Relative affordability and supply that trails demand are common threads among what should be the most competitive markets for buyers in 2025.  Nationwide, Zillow forecasts relatively slow and steady growth for both home values and sales in 2025, though affordability and unpredictable mortgage rates will present familiar headwinds. Inventory should continue to recover from a deep pandemic-era deficit.

Zillow’s list of the hottest markets is based on an analysis of forecasted home value growth, recent housing market velocity and projected changes in the labor market, home construction activity and number of homeowner households. [1] Zillow forecasted Buffalo to be the hottest market in 2024 and that prediction proved prescient. Sellers held a strong advantage in negotiations there throughout last year, according to Zillow’s market heat index. New jobs often mean new residents, which raises competition and drives up prices unless builders can match the additional demand. Buffalo has the most new jobs per new home permitted — a key component that’s kept Buffalo at the top of the list for two years running, along with expected appreciation. Meanwhile, Indianapolis’s second-place rank can be chalked up to its strong home price forecast for this year, which is expected to be greater than the appreciation it experienced in 2024.

Source: Zillow