This New York city will be the hottest U.S. housing market in 2025, Zillow says—homes there go for under $230,000

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Zillow's "hottest" housing markets for 2025 are those with the fastest growth in home values and increasing demand. Rankings consider forecasted price increases, how quickly homes sell, inventory shortages, climbing rents and local job and population growth, based on data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau and Zillow's own listing data.

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well below the standard price of $356,585 in the United States, according to the latest data from Zillow.

Besides Buffalo, the top five hottest markets include Indianapolis, Indiana, Providence, Rhode Island, Hartford, Connecticut, and Philadelphia.

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Buffalo's affordability is a significant factor in its top ranking, but other factors also contribute to its success.

The demand for housing has far outpaced the construction of new homes, with over two job openings in the housing market created for every new house built since the pandemic, according to research. This imbalance has resulted in increased competition for homes and driven up their prices.

"When new jobs become available, they often bring in new residents, which can lead to a housing competition and increased prices unless builders can keep pace with the growing demand," Zillow notes in its report. Buffalo is a prime example of this pattern, with demand still exceeding the availability of housing.

Concurrent with a comprehensive inventory of homes has contributed to the city maintaining its position at the top of Zillow's rankings.

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