If you're in the market to buy or sell your home, 2025 might be the perfect time to make a move. But before you pack up, you might want to consider a destination where the housing market is thriving.
Several cities across the country are attracting homebuyers with strong economic growth, desirable locations and competitive real estate environments, with homes often selling faster and above asking price.
Real estate website Zillow recently analyzed the nation's 50 most populous metro areas to predict which will be the hottest major housing markets in 2025 based on a number of factors, such as forecasted home value growth, projected changes in the labor market and home construction activity.
The ranking reveals that Buffalo, N.Y. is set to be the nation's hottest market, driven by a combination of affordability, economic growth and increased demand.
Close behind, Indianapolis, Providence, Hartford, and Philadelphia round out the top five, each offering unique advantages for homebuyers.
Zillow says these cities are experiencing a surge in interest, with rising property values and a competitive market environment, making them prime locations for both new buyers and investors looking to capitalize on growth opportunities.
Rising fastest in the ranks from 2024's hottest markets list is Virginia Beach, which leapfrogged over 23 markets to the No. 13 spot this year, driven by job growth that has far outpaced new home permitting. Memphis fell the farthest by the same token, dropping 30 places, as new home permitting has eclipsed low job growth.
Even in the hottest markets, mortgage rates are likely to continue on their bumpy path in 2025, and swings will have a major impact on which homes shoppers can afford or even qualify for, Zillow noted.
"Shoppers nationwide should see more options for sale than in recent years, along with slow and steady price growth. That's the good news. But both buyers and sellers should expect unpredictable mortgage rates," the report says.
Zillow's predictions for the hottest housing markets of 2025
1. Buffalo, NY
2. Indianapolis, IN
3. Providence, RI
4. Hartford, CT
5. Philadelphia, PA
6. St. Louis, MO
7. Charlotte, NC
8. Kansas City, MO
9. Richmond, VA
10. Salt Lake City, UT
11. Cincinnati, OH
12. Columbus, OH
13. Virginia Beach, VA
14. Cleveland, OH
15. Miami, FL
16. Boston, MA
17. Oklahoma City, OK
18. Detroit, MI
19. San Diego, CA
20. Birmingham, AL
21. Raleigh, NC
22. Riverside, CA
23. Orlando, FL
24. Atlanta, GA
25. Pittsburgh, PA