Affordability and job growth are important competitive factors

• The competition among buyers never let up buffalo last year, and that heat should continue to smolder until 2025.
• Hot markets are spreading from the Northeast, Great Lakes and South regions to the Midwest and West.
• Virginia Beach jumped the furthest as of 2024, outperforming over 23 markets.

SEATTLE, January 7, 2025 /PRNewswire/ — Buffalo, New Yorkwill be the hottest major real estate market in 2025, the first time a market has held that title in two years, according to a new analysis from Zillow®. Relative affordability and few homes for sale are the common characteristics of the markets that are expected to be the most competitive for buyers this year.

“Construction that keeps pace with a region’s growth remains a critical factor in ensuring the availability and accessibility of homes. In the cold.” buffalo“Competition among buyers will remain fierce as employment grows far faster than builders are building new homes,” he said Skylar OlsenZillow Chief Economist. “Buyers across the country should see more purchasing options than in recent years, along with slow and steady price growth. That’s the good news. But both buyers and sellers face unpredictable mortgage rates.”

This hotness ranking of the country’s 50 most populous metro areas takes into account Zillow’s forecast for local home value growth and how quickly homes are selling. The employment growth per approved new apartment and the expected growth in owner-occupied homes are also taken into account.

Zillow forecast buffalo to be the hottest market in 2024, and this prediction turned out to be prescient. Accordingly, the sellers there had a big advantage in the negotiations last year Zillow’s Market Heat Index.

buffalo has the most permitted new jobs per new home – a measure of expected demand. New jobs often mean new residents, increasing competition and driving up prices unless developers can meet the additional demand.

Although affordability has improved slightly compared to last year, it is still a top priority for buyers. Below average property prices and rental costs in buffalo as well as Midwest metropolises such as Indianapolis, St Louis And Kansas City have bolstered demand in these areas and helped push them to the top of the list.

Relative affordability is also a strong factor. Nearby alternatives to expensive northeastern subways like new York And Boston dominated Zillow’s list of most popular cities for home buyers in 2024. Metropolitan regions in the same sense – providence, Hartford And Philadelphia – are also at the top of this list.

Hartford, providence, Indianapolis and Charlotte are all in the top five in Zillow’s 2025 home value appreciation forecast. Hartford With an expected growth of 4.2%, the company is at the top. But property value growth will largely slow this year – even these standout metros look weak compared to the double-digit annual value increases in 2021 and 2022.

The fastest climber on the list of hottest markets of 2024 is Virginia Beach, which pushed over 23 markets to No. 13 this year, driven by job growth that far outpaces the number of building permits. Memphis At the same time, they fell the most, falling 30 places, as new housing approvals dwarfed low job growth.

After the entire western half of the country was left out of the top 10 last year, Salt Lake City made it to number 10 on this year’s list. San Diego was the only other western metro in the top 20 at number 19.

Mortgage rates are likely to continue rising bumpy road in 2025and fluctuations will have a big impact on which homes buyers can afford or even qualify for. Zillow Home Loans’ BuyAbility^SM The tool tracks prices in real time to show users which homes fit their budget.

About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) Is rethink Real estate to make homes a reality for more and more people. As the most visited real estate website in the United States, Zillow and its subsidiaries help people find and get the home they want by connecting them to digital solutions, dedicated partners and brokers, and easier buying, selling, financing and leasing experiences.

Zillow Group’s affiliates, subsidiaries and brands include Zillow®, Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss ®.

All trademarks contained herein are the property of MFTB Holdco, Inc., a subsidiary of Zillow. Zillow Home Loans, LLC is an equal opportunity home loan lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a subsidiary of Zillow.

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SOURCE Zillow