Experts are predicting modest growth in home sales during 2025, but some markets will be hotter than others. For the second year in a row, housing market platform Zillow has named Buffalo, N.Y., as its hottest housing market for the year. Other top contenders include Indianapolis; Providence, R.I.; Hartford, Conn.; and Philadelphia. These markets share a number of traits, including relative affordability, a housing supply that can't keep up with demand, and more.
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. Read more