
Zillow’s predictions detailing the hottest housing markets for 2025 highlight intriguing trends in real estate. From revitalized Northeastern cities like Buffalo and Hartford to cultural hubs such as Richmond and Charlotte, these markets are driven by affordability, lifestyle appeal, and steady demand. Here’s a look at the cities shaping the real estate narrative this year.
1. Buffalo, NY
Buffalo secures the top spot as Zillow’s hottest housing market for the second consecutive year. The city, known for its proximity to Niagara Falls and its strong sense of community, also benefits from revitalized developments along its waterfront. Based on Zillow data from December, home values rose by 5.7% over the past year and are expected to grow by 2.8% in 2025, reaching a typical value of $267,878. Listings move quickly, going pending in just 18 days, underscoring strong competition.
2. Indianapolis, IN
Indianapolis, known for the Indianapolis Motor Speedway, is located along the banks of the White River and thrives on economic stability fueled by major employers like Eli Lilly. This city balances growth with affordability, making it attractive to buyers. Home values are forecasted to rise to $285,086 in 2025 (currently standing at $222,349) and listings typically go pending within 24 days, based on Zillow data through December.
3. Providence, RI
With a scenic waterfront and institutions such as Brown University and the Rhode Island School of Design, Providence melds history with modern appeal. The Venetian-inspired downtown bridges add to the city’s unique charm. Following a 7% surge in 2024, home values, currently at an average price of $400,873 (based on Zillow data through December), are projected to grow by 3.7% in 2025. Homes sell rapidly, typically going pending in 22 days, reflecting strong demand.
4. Hartford, CT
Dubbed the “Insurance Capital of the World,” Hartford offers economic stability alongside its historical significance. The housing market leads Zillow’s top 10 with an anticipated 4.2% increase in home values, reaching $378,693 in 2025. Listings are snapped up in about 23 days, based on Zillow data through December, emphasizing fierce competition.
5. Philadelphia, PA
Philadelphia, the “City of Brotherly Love,” blends historic charm with urban vibrancy, offering convenient walkability and iconic landmarks. Though cooling slightly after a heated 2024, the market remains robust. Home values are expected to rise by 2.6% in 2025. Based on Zillow data through December, listings typically go pending in just 26 days, reinforcing strong buyer interest in this dynamic city.
6. St. Louis, MO
St. Louis, renowned for its towering Gateway Arch and affordability, remains a top destination for first-time homebuyers. Home values are forecasted to rise by 1.9% in 2025 to $254,847—the lowest among Zillow’s top 10. Homes sell fast, typically pending in about 23 days, based on Zillow data through December.
7. Charlotte, NC
Charlotte, celebrated as the “Queen City,” thrives as a financial hub and a vibrant sports town, hosting three professional men’s teams and a women’s pro soccer team. Its temperate climate and outdoor lifestyle attract families and professionals alike. Zillow predicts a 3.2% rise in home values in 2025, reaching $389,383. Listings take slightly longer to sell there, going pending in about 31 days, based on data through December.
8. Kansas City, MO
Renowned for its rich musical history, delectable barbecue, and over 200 fountains, Kansas City continues to attract residents with its mix of culture and affordability. Zillow forecasts a 2.7% increase in home values to $307,334 in 2025. According to data through December, the typical listing goes pending within 18 days.
9. Richmond, VA
Richmond, steeped in history, features burgeoning dining, social, and arts scenes, making it a sought-after destination. Home values are predicted to grow by 2.9% in 2025. Listings there don’t last long, typically pending in 11 days, per Zillow data through December.
10. Salt Lake City, UT
Surrounded by breathtaking mountain ranges, Salt Lake City is an ideal hometown for outdoor enthusiasts, with 10 ski resorts within an hour’s drive. Its growing and increasingly diverse population continues to drive energy into the housing market. Zillow forecasts a 2.3% increase in home values for 2025, bringing the typical value to $555,858. Homes typically go pending in about 27 days, based on data through December, highlighting the city’s enduring appeal.