Buffalo is home to the hottest major housing market in 2025, according to a newly released report by Zillow, and it’s the first time a market has held the title in back-to-back years.
“Construction that keeps pace with an area’s growth remains a crucial piece of keeping homes available and accessible, Zillow chief economist Skylar Olsen said. “In chilly Buffalo, competition among buyers will remain hot, with employment growing far faster than builders are adding homes.”
Here’s what to know.
Why Buffalo is ranked No. 1
The primary reasons Buffalo was number one again, according to Zillow? Job and wage growth, relative affordability and demand that outweighs supply.
According to Zillow’s analysis, the Queen City has the most new jobs per new home permitted – a measure of expected housing in ratio to new residents brought to the area by new jobs. It also benefits from the relative affordability both in the context of the larger market and as an alternative to the much for expensive New York City or other Northeastern cities, like Boston.
Lower-than-average home prices and rent costs in Buffalo bolstered demand and helped to push it to the top spot.
Zillow’s top 10 hottest housing markets of 2025
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Philadelphia, Pennsylvania
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Charlotte, North Carolina
Zillow’s hottest housing market list methodology
Zillow’s rankings are made by examining the nation’s 50 most populous metros, taking into account Zillow’s forecast for local home value growth and the speed at which home sellers are entering contracts with buyers. Zillow also measured typical home value, the average mortgage payment, typical rent and the average number of days a house is on the market for each city.
The analysis also includes:
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Expected value appreciation from November 2024 to November 2025
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Job growth over two years per residential building permit total
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Growth in owner-occupied households
Contributing: USA Today Network
Emily Barnes reports on consumer-related issues for the USA TODAY Network’s New York Connect Team, focusing on scam and recall-related topics. Follow her on Twitter and Instagram @byemilybarnes. Get in touch at ebarnes@gannett.com.
This article originally appeared on Rochester Democrat and Chronicle: Buffalo tops Zillow’s hottest housing markets for 2025. Here’s why