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.
Zillow’s “hottest” housing markets for 2025 are those with the strongest growth in home values and buyer demand. Rankings consider forecasted price increases, how quickly homes sell, inventory shortages, rising rents and local job and population growth, using data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau and the company’s own listing data.
The places that ranked the hottest tend to be medium-sized cities with lower-than-average home prices, suggesting that buyers are seeking out cheaper homes amid rising prices.
While prices are increasing in Buffalo, they remain relatively affordable, with an average home value of $223,812 — well below the U.S. average of $356,585, according to Zillow’s latest data.
Aside from Buffalo, Indianapolis, Indiana; Providence, Rhode Island; Hartford, Connecticut; and Philadelphia round out the top five hottest markets.
Why Buffalo continues to be No. 1
Buffalo’s affordability is a major reason for its top ranking, but other factors also play a role.
The city’s job growth has steadily outpaced new construction, with over two jobs created for every home built since the pandemic, according to the study. This mismatch has increased competition and pushed home prices higher.
“New jobs often mean new residents, which raises competition and drives up prices unless builders can match the additional demand,” Zillow says in its report. Buffalo exemplifies this trend, with demand continuing to outstrip supply.
While the U.S. housing market is expected to grow more slowly in 2025, the region’s strong economy combined with a tight inventory of homes has kept the city at the top of Zillow’s rankings.
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