As the housing market continues to evolve, homebuyers are setting their sights on cities with strong job growth, affordability, and high demand. While fluctuating mortgage rates present challenges, several metro areas are standing out as prime locations for home purchases in 2025. According to Zillow, the hottest housing markets this year are concentrated in the Northeast and Midwest, where home values are climbing at a steady pace and homes are selling significantly faster than the national average.
What Defines a Hot Market?
Zillow analyzed the 50 largest U.S. metro areas based on key factors, including:
- Home value growth – Cities with steadily increasing property values.
- Owner-occupied household increases – Indicators of growing demand.
- Job growth vs. new construction – Balancing employment expansion with housing supply.
- Speed of home sales – Homes selling significantly faster than the national median.
With these criteria in mind, here are the top 10 hottest housing markets for 2025:
1. Buffalo, NY
For the second consecutive year, Buffalo tops the list. The city’s proximity to Niagara Falls and affordable housing make it a desirable market. Home values are expected to rise 2.8% to $267,878, with homes going under contract in just 12 days.
2. Indianapolis, IN
A city with a strong economy and an affordable housing market, Indianapolis continues to attract homebuyers. Home values are forecast to rise to $285,086, and properties sell in about 14 days.
3. Providence, RI
A charming waterfront city with a mix of historic and modern appeal, Providence is set for 3.7% home value growth. While appreciation has slowed compared to 2024, homes still go under contract in 12 days.
4. Hartford, CT
With the highest home value growth on the list, Hartford properties are expected to appreciate 4.2%, reaching $378,693. This high demand means homes are selling in an astonishing 7 days.
5. Philadelphia, PA
Known for its walkability and historic landmarks, Philadelphia’s housing market remains strong. Home values are expected to rise 2.6%, and properties spend an average of 11 days on the market before going pending.
6. St. Louis, MO
Recognized as a top market for first-time buyers in 2024, St. Louis remains one of the most affordable cities on the list. Home values are expected to grow by 1.9% to $254,847, and homes typically sell within 8 days.
7. Charlotte, NC
A thriving economy and strong sports culture make Charlotte an attractive destination. Home values are projected to climb 3.2% to $389,383. The market remains competitive, with homes going under contract in about 20 days.
8. Kansas City, MO
Famed for its barbecue and jazz scene, Kansas City is becoming a real estate hotspot. Home values are forecast to grow by 2.7%, reaching $307,334. Buyers must act fast—homes here typically sell in 9 days.
9. Richmond, VA
Steeped in history yet bursting with modern culture, Richmond has seen rapid real estate growth. While things may slow slightly in 2025, home values are expected to increase by 2.9%, with homes going under contract in an average of 9 days.
10. Salt Lake City, UT
A magnet for outdoor enthusiasts, Salt Lake City boasts breathtaking mountain views and world-class skiing. Home values are projected to rise by 2.3%, reaching approximately $555,858. The market remains competitive, with homes selling in about 19 days.