As we enter 2025, Zillow’s latest housing market forecast highlights several U.S. cities expected to experience significant growth. The top markets include Buffalo, Indianapolis, Providence, Hartford, Philadelphia, St. Louis, Charlotte, Kansas City, Richmond, and Salt Lake City.
Buffalo, New York
For the second consecutive year, Buffalo leads Zillow’s list. The city’s relative affordability, strong job market, and limited housing supply contribute to its appeal. In 2024, Buffalo’s home prices rose by 6%, with an additional 3% increase projected for 2025.
Indianapolis, Indiana
Ranked second, Indianapolis is expected to see home values appreciate faster than the national average, with a projected 3.4% increase in 2025. The city’s affordability and job growth make it attractive to buyers seeking a balance between cost and quality of life.
Providence, Rhode Island; Hartford, Connecticut; and Philadelphia, Pennsylvania
These Northeastern cities offer more affordable living compared to nearby metros like New York City and Boston. Their job opportunities and urban amenities attract first-time homebuyers and those seeking a lower cost of living without sacrificing quality.
St. Louis, Missouri; Charlotte, North Carolina; Kansas City, Missouri; Richmond, Virginia; and Salt Lake City, Utah
These cities are experiencing increased demand due to their affordability, job growth, and desirable living conditions. Limited housing supply in these areas leads to competitive markets, with homes selling quickly, often at or above asking price.
Market Dynamics and Buyer Considerations
In these hot markets, sellers can expect favorable conditions, with homes likely to sell quickly and at strong prices. However, they should be prepared to navigate competitive buying environments when purchasing new properties. Buyers should act swiftly, as listings may remain on the market for only a few days, and be prepared for potential bidding wars that can drive up final sale prices.
Conclusion
Zillow’s 2025 housing market forecast indicates robust growth in several U.S. cities, particularly in the Midwest, Northeast, and South. Factors such as affordability, job growth, and limited housing supply contribute to these markets’ attractiveness. Both buyers and sellers should stay informed about local market conditions to make strategic decisions in this dynamic real estate landscape.