Zillow released an analysis this week predicting the nation’s hottest housing markets of 2025, where sellers have the greatest advantage.
The heat ranking takes local home value growth into account as well as how quickly homes are selling and job growth per new home.
Buffalo, New York was at the top of the list, for the second year in a row. Zillow forecasts that the area will be the hottest housing market this year because of its lower-than-average home prices and strong home value growth.
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Buffalo also has the greatest number of new jobs per new homes permitted, which means it has the greatest expected demand for housing. New jobs translate to new residents who move into an area, increasing competition and home prices until builders can construct enough houses to meet demand.
“Construction that keeps pace with an area’s growth remains a crucial piece of keeping homes available and accessible,” Zillow’s chief economist Skylar Olsen stated in a press release. “In chilly Buffalo, competition among buyers will remain hot, with employment growing far faster than builders are adding homes.”
Zillow forecasted last year that Buffalo would be a hot market in 2024 and was correct. The area was a strong seller’s market last year, according to Zillow’s own market heat index.
Related: A New Hampshire City Was Named the Hottest Housing Market in the U.S. This Year. Here’s the Top 10 for 2024.
Second on the list is Indianapolis, Indiana. With a typical home value of $275,639 in 2024, Indianapolis sta