Homes in these relatively affordable markets sell faster than the national average – here’s how to get an edge.
In the midst of volatile mortgage rates and affordability challenges for first-time home buyers, it might surprise you that local markets could be experiencing a real estate boom. But that’s exactly what Zillow economists are forecasting for a number of locales in the Northeast and Midwest, where relatively low home prices, job growth and stiff competition have landed a new crop of metros onto Zillow’s list of hottest markets for 2025.
When we say stiff competition, we mean that in some metros, homes are selling in as little as a week. That’s nearly three weeks less than the national average as of November 2024. The fierce demand for homes in all the hottest markets means that prices are expected to rise this year — though most will do so more slowly than they did last year. Zillow predicts that 18 metros will experience faster home value growth in 2025 than they did a year earlier. Slower growth is good news for buyers who have locked in their budgets and are saving for down payments.
Read on to see which markets made the cut, and why we picked them. As a bonus, we’ve also included a list of the top 15 fastest markets.
What makes these markets hot?
To come up with the list of hottest markets, Zillow analyzed the 50 largest U.S. metro areas for the following:
- home value growth
- projected change in owner-occupied households
- job growth compared to new construction
- the speed at which homes are sold
New jobs often attract new residents, and with that comes increasing competition for homes, which can drive home prices higher unless new construction can keep up with the revved up demand. And rising numbers of owner-occupied households is a sign of family formation and population growth.
The top 10 hottest large metros for 2025
Only four metros from last year’s list made the cut for 2025, representing a shift away from some of the hot markets in Florida and Ohio, which dominated last year’s list.
10. Salt Lake City, UT
Encircled by mountains, Salt Lake City has 10 ski resorts within an hour’s drive of its airport, making it a world-class destination for skiers and outdoor enthusiasts. The growing, increasingly diverse population, has juiced the local real estate market in recent years. Home values here are expected to grow by 2.3% in 2025, pushing the typical home value to $555,858. Homes here sell relatively fast, in about 19 days.
Homes for sale in Salt Lake City
Homes for rent in Salt Lake City
9. Richmond, VA
This capital city, steeped in colonial history, is one of the nation’s oldest cities. Today, it has a thriving social/dining/arts scene, and a real estate market that’s been on a tear in recent years. Things should be calmer in 2025, with forecasted growth in home values a modest 2.9%. Buyers here should come prepared: Homes sell in an average of 9 days.
8. Kansas City, MO
Kansas City sits on Missouri’s western border with Kansas, a storied place known for its musical history, barbecue and fountains (there are more than 200 of them). Home values are expected to increase 2.7% in 2025, which would make the typical home here worth $307,334. Speedy home sales are the norm: Homes go from listing to pending in 9 days.
7. Charlotte, NC
Celebrated for its outdoor spaces and temperate climate, the “Queen City” is an enthusiastic sports town that has three professional men’s teams and a women’s pro soccer team. The typical home value is expected to appreciate about 3.2% in 2025, bringing the typical home value to $389,383 by November. The market is a competitive one, where homes go pending in about 20 days.
6. St. Louis, MO
This Midwest city was rated Zillow’s top market for first-time buyers in 2024, based largely on its affordability. Home values are expected to grow 1.9% in 2025, which would bring the typical home value to $254,847, the lowest on the top 10 list. Homes fly off the market here in about eight days.
5. Philadelphia, PA
The City of Brotherly Love is a walkable place, with history awaiting you at every turn. The real estate market here was fired up in 2024, but should be calmer in 2025, with a modest 2.6% growth projected for home values. If you’re thinking of buying, expect to move quickly. New listings go pending in an average of 11 days.
Homes for sale in Philadelphia
Homes for rent in Philadelphia
4. Hartford, CT
Homes in Hartford are forecast to reach $378,693 in 2025, a 4.2% increase over 2024 — the largest bump in our top 10 cities. That’s slower than 2024, when home values shot up by 7.4%. Homes here sell in about 7 days, which makes it especially important for buyers to line up their financing if they’re preparing to buy in such a competitive market.
3. Providence, RI
This waterfront city — home to Brown University and the Rhode Island School of Design, manages to feel both quaint and sophisticated. Its downtown is graced by a waterfront park with Venice, Italy-style bridges that traverse the Woonasquatucket River. Home values are expected to grow by about 3.7% in 2025, a slowdown from the 7% appreciation logged in 2024. But demand is still robust, with homes going pending in 12 days.
2. Indianapolis, IN
Indianapolis is a waterfront city, centrally located in the Hoosier state along the banks of the White River. Internationally known for auto racing, it is home to the Indianapolis Motor Speedway, a 2.5-mile long track that is one of the oldest auto racing circuits in the U.S. The largest private employer is the pharmaceutical giant, Eli Lilly. The market here tilts very slightly in buyers’ favor, but homes sell quickly. The typical home value is expected to rise to $285,086 in 2025, and new listings go pending in about two weeks.
Homes for sale in Indianapolis
1. Buffalo, NY
Buffalo tops our hottest markets list for the second year in a row. This city, famous for epic snowstorms and proximity to Niagara Falls, one of the world’s great natural wonders, saw home values grow 5.8% year over year in 2024. Growth this year is expected to slow down. The typical home is forecast to rise 2.8% to $267,878 in 2025, with homes going from listing to pending in only 12 days.
What do I need to know if I’m buying in a competitive market?
Prepare yourself by getting your finances in order, and by getting pre-approved with a lender so that you can move quickly, especially in markets like Kansas City, where homes go from listing to pending in as little as nine days. Below, we’ve included a snapshot of 15 fast-selling housing markets to know right now.
An experienced real estate agent can help you learn about your local market conditions, including how fast homes are going off the market and competitive strategies for making an offer. To check whether your market favors buyers or sellers — or if it’s somewhere in between — check out Zillow’s Market Heat Index. You can also explore home prices and trends for markets around the country, including current home values, time on market, and the share of homes that sell at or below listing price.