Buffalo Tops List of Zillow's Predicted Hottest Housing Markets for 2025

Zillow forecasts intense competition in Northeast and Midwest cities, with rising job growth outpacing new home construction.

Buffalo, New York, is projected to be the most competitive housing market in 2025 due to strong job growth and limited housing supply.
Indianapolis and Providence follow as other highly competitive markets, driven by affordability and strong buyer demand.
Zillow's analysis highlights a divide, with Northeastern cities like Rochester and Hartford expected to remain seller's markets, while Southern cities like Cape Coral and McAllen favor buyers.
Elevated mortgage rates, currently averaging around 6.85%, continue to discourage existing homeowners from selling, exacerbating housing supply issues.
The Federal Reserve's gradual rate cuts in 2025 could ease mortgage rates, but affordability challenges are likely to persist for homebuyers.