Buffalo, NY: The Hottest Housing Market in the US
Buffalo, New York has been named the hottest housing market in the United States for the second year in a row, according to Zillow, a popular real estate website. The city’s housing market has seen a surge in popularity due to various factors that have made it highly competitive for buyers.
Zillow’s market heat index revealed that Buffalo’s real estate market was characterized by sellers holding a strong negotiation advantage throughout the previous year. This, combined with the city having the most new jobs per new home permitted, has solidified its position as the top-ranking housing market in the country.
The average home value in Buffalo in 2024 was $260,537, making it an attractive option for buyers looking for affordable housing options. While affordability has improved slightly compared to the previous year, it remains a key consideration for homebuyers in the region.
Driving Factors Behind Buffalo’s Housing Market Success
Lower-than-average home prices and rent costs in Buffalo, as well as in other Midwest metro areas like Indianapolis, St. Louis, and Kansas City, have contributed to the increased demand in these regions. This surge in demand has pushed these cities to the top of the ranking for hottest housing markets in the United States.
According to Zillow, the hot housing markets are not limited to Buffalo but are also found in the Northeast, Great Lakes, South regions, as well as expanding into the Midwest and West. This indicates a broader trend of increased interest in real estate across various regions of the country.
2025 Hottest Markets Ranking
Here is a complete list of the 2025 hottest markets, according to Zillow:
| Rank | Metropolitan Area | Change in Rank from 2024 | Zillow Home Value Index (ZHVI) | 2024 ZHVI Year-over-Year Growth | 2024-2025 Home Value Growth Forecast | Jobs per New Home Permitted | Change in Inventory Versus 2018-2019 Averages |
|—|—|—|—|—|—|—|—|
| 1 | Buffalo, NY | 0 | $260,537 | 5.7% | 2.8% | 2.0 | -46.1% |
| 2 | Indianapolis, IN | 2 | $275,639 | 3.6% | 3.4% | 0.5 | -16.1% |
| 3 | Providence, RI | 2 | $484,019 | 6.7% | 3.7% | 1.3 | -62.0% |
| 4 | Hartford, CT | 15 | $363,298 | 6.5% | 4.2% | 1.1 | -68.6% |
| 5 | Philadelphia, PA | 6 | $362,744 | 4.6% | 2.6% | 1.5 | -46.0% |
The data shows the significant growth and demand in these regions, highlighting the current trends in the real estate market that are shaping the landscape for buyers and sellers alike.
Buffalo’s rise to the top of the list reflects a broader shift in the housing market, with affordability and job opportunities playing a crucial role in driving buyer interest. As the city continues to attract new residents and investors, it is poised to maintain its position as one of the hottest housing markets in the United States.
This success story of Buffalo’s real estate market serves as a testament to the city’s resilience and appeal, making it an exciting prospect for those looking to invest in property or find their dream home in a thriving community.
