Buffalo, New York: Poised to Be 2025’s Hottest Housing Market
Buffalo, New York, has emerged as Zillow’s top pick for the hottest U.S. housing market in 2025. Known for its affordability, homes in Buffalo average below $230,000—far below the national median. homes in Buffalo average below $230,000—far below the national median.
Zillow’s prediction shows Buffalo’s growing appeal. Job growth and rising demand, along with affordable housing, fuel it.
For the second year, Buffalo, NY, has the “hottest” U.S. housing market, per Zillow. It’s among the 50 most populous cities. The ranking reflects Buffalo’s strong home value growth, high buyer demand, and a competitive real estate landscape.
Zillow’s analysis considers four factors: 1. Forecasted price increases. 2. Inventory shortages. 3. Rising rents. 4. Local job and population growth. Buffalo’s affordability plays a crucial role, with an average home value of $223,812—significantly lower than the national average of $356,585.
Zillow’s list is full of medium-sized cities with cheap housing. It suggests buyers want affordable options as home prices rise. Indianapolis, Providence, Hartford, and Philadelphia round out the top five hottest markets.
For the second year, Buffalo, NY, has the hottest U.S. housing market. Its affordability and economic growth are to thank
A key factor is Buffalo’s job growth, which has outpaced new home construction. According to Zillow, over two jobs are created for every home built since the pandemic.
The city’s robust housing market is also reflective of broader trends. Zillow says medium-sized cities with cheap homes are thriving. Buyers are looking beyond pricey urban hubs.
