Buffalo, New York, has once again been crowned the "hottest" real estate market in the United States. This marks the second consecutive year that Buffalo has claimed this title, according to Zillow's latest data, which draws from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, and Zillow's own listings. The ranking reflects anticipated price increases, quick home sales, inventory shortages, and rising rents, alongside local job and population growth.
Affordability plays a significant role in Buffalo's top ranking. The average home value in the city stands at $223,812, substantially lower than the national average of $356,585. This affordability, coupled with Buffalo's robust economic landscape, contributes to its attractiveness as a prime real estate market.
The city's job growth further solidifies its position. Since the pandemic, Buffalo has seen job creation outpacing new construction, with over two jobs generated for every home built. This imbalance between job growth and housing development intensifies competition among buyers and drives up home prices.
"New jobs often mean new residents, which raises competition and drives up prices unless builders can match the additional demand." – Zillow
As the U.S. housing market braces for slower growth in 2025, Buffalo remains steadfast due to its strong economy and tight inventory. This combination keeps the city at the forefront of Zillow's rankings for metropolitan areas expecting substantial growth in home values and buyer interest.
Following closely behind Buffalo are Indianapolis, Indiana as the second hottest market; Providence, Rhode Island in third place; Hartford, Connecticut in fourth; and Philadelphia rounding out the top five. These cities have also demonstrated strong growth in home values and sustained buyer demand according to Zillow’s forecast.