Real estate experts just released their housing predictions for 2025—and we never saw this one detail coming

Sharing is caring!

Choosing where to live is a big decision that impacts every part of your life, like your job options and how much it costs to live. It’s important to think carefully before deciding. Experts in real estate, such as those at Zillow, study housing markets all over the United States.

They look at how many people want to buy houses, the growth of the area, and how good life is there. Every year, Zillow predicts which housing markets will be the best. For the first time, the same city won the title two years in a row. Buffalo, New York, has kept its top spot thanks to a strong job market, happy people, and lots of new houses being built. This city is becoming as well-liked as its popular NFL team.

Building enough homes to match how fast an area is growing is key to making sure there are enough houses for everyone. In Buffalo, where it’s often cold, the competition for buying homes stays strong because there are more jobs than new homes.

Skylar Olsen, who is the main economist at Zillow, mentioned that people looking to buy homes across the country will find more options than before. Prices will go up slowly and steadily. That’s the good news.

However, Olsen also mentioned that the cost of borrowing money to buy a house might change a lot and is hard to predict.

If you want a place that costs less to live, or you’re starting a new job, or you want a mix of city and quiet suburban life, Zillow’s top markets offer these choices. Keep reading to see the top five places on their list, including Buffalo, New York, which is still the champion.

5. Philadelphia, Pennsylvania

Philadelphia Pennsylvania smallhometours.com
joe daniel price//Getty Images

Philadelphia is a great option if you want to live near New York City. It’s getting more popular and home prices are going up. As we start 2025, Zillow thinks Philadelphia will keep growing, with home prices increasing by 4.6 percent from last year. In Philadelphia, the average home price is about $362,744, which is pretty affordable compared to other places in the Northeast.

4. Hartford, Connecticut

Hartford Connecticut smallhometours.com
SeanPavonePhoto//Getty Images

Hartford is at the top of Zillow’s list for places where home prices are expected to rise the most, with an increase of 4.2 percent. It’s becoming a popular place for young families and people who are retired. Hartford, the capital of Connecticut, has seen a big drop in the number of homes for sale—by 68 percent. This shows that a lot of people want to buy homes there.

3. Providence, Rhode Island

Providence Rhode Island smallhometours.com
DenisTangneyJr//Getty Images

Providence is a charming capital city known for its rich history, art scene, and large number of students. It’s becoming more popular as a place to buy homes because it’s cheaper than New York City and Boston. The average home price in Providence is $484,019, and the city’s home values are expected to grow by 3.7 percent.

2. Indianapolis, Indiana

Indianapolis Indiana smallhometours.com
Nicholas Klein//Getty Images

Indianapolis stands out on this year’s list, which mostly includes cities from the Northeast. It’s predicted to be the second hottest market of 2025. Indiana’s capital is famous for its basketball, car racing, and great museums. Home values in Indianapolis are expected to rise, from a 2.8 percent increase last year to 3.4 percent in 2025, according to Zillow.

1. Buffalo, New York

Buffalo New York smallhometours.com
benedek//Getty Images

Buffalo is known for its very enthusiastic sports fans, especially the Bills Mafia. It’s becoming a trendy place to live because it has lower-than-average costs for homes and rent. This attracts a lot of younger people. Zillow says Buffalo is creating more jobs compared to the number of new homes being built, showing strong demand. Buffalo was the hottest market of 2024, and it continues to hold that title as we enter 2025.