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Zillow’s 2025 Housing Forecast Is Here—And One Unexpected Detail Stands Out

Zillow’s 2025 Housing Forecast Is Here—And One Unexpected Detail Stands Out

Where you live influences everything—from career opportunities to cost of living. That’s why real estate experts, like those at Zillow, analyze market trends, housing demand, and quality of life indicators to forecast the year’s hottest markets.

For the first time ever, a city has claimed the top spot two years in a row. With a booming job market, new construction, and strong community appeal, Buffalo continues to attract buyers. According to Zillow’s chief economist, Skylar Olsen, while inventory is growing nationwide, mortgage rates remain unpredictable.

Looking for an affordable city with strong growth? Here are Zillow’s top five markets for 2025:

5. Philadelphia, PA 

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A thriving alternative to NYC, Philadelphia is seeing a surge in demand due to its balance of affordability and urban living. Home values are projected to rise 4.6%, bringing the typical price to $362,744. Its job market remains strong, attracting remote workers and young professionals looking for a lower cost of living without sacrificing big-city amenities.


4. Hartford, CT 

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Leading Zillow’s list with the highest expected home value growth (4.2%), Hartford is quickly becoming a hotspot for both younger families and retirees. With a 68% drop in housing inventory, competition is fierce, signaling strong buyer demand. Its proximity to both Boston and New York makes it a desirable alternative for those seeking suburban charm with easy access to major economic hubs.


3. Providence, RI 

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Leading Zillow’s list with the highest expected home value growth (4.2%), Hartford is quickly becoming a hotspot for both younger families and retirees. With a 68% drop in housing inventory, competition is fierce, signaling strong buyer demand. Its proximity to both Boston and New York makes it a desirable alternative for those seeking suburban charm with easy access to major economic hubs.


2. Indianapolis, IN 

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The only non-Northeastern city on the list, Indianapolis is proving itself as a rising star. Known for its sports culture, museums, and affordable cost of living, the city’s home values are expected to increase from 2.8% to 3.4%. Zillow also highlights that Indianapolis is one of the few cities with an improving outlook for home value appreciation, making it an attractive investment option.


1. Buffalo, NY 

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Holding onto the top spot for the second year in a row, this city’s booming job market, steady new construction, and affordability continue to drive demand. With the highest number of new jobs per new home built, housing here remains in high demand, making it a competitive market for buyers and investors alike.

Work with Sean

Sean has an established sales business in the Philadelphia, Main Line, and Jersey Shore markets. He’s also a leader in the Keller Williams Main Line office and at the regional level. These connections are the reason that Sean has a dependable referral network with clients and real estate agents alike.

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