In upstate New York, there’s a red-hot housing market to watch this year, according to Zillow — though its construction is struggling to keep up.

With a strong job market and home prices 37% below the national average, Buffalo continues to lead as the hottest market in the U.S.

According to a new Zillow report, Buffalo, New York, and four other cities in the Northeast and Midwest will have the hottest housing markets in 2025.

For the second year in a row, Zillow — a real estate website — predicts that a specific city in New York will be the most competitive for buyers in the coming year in the United States. Buffalo is predicted by Zillow to have the hottest housing market in the United States.

Buffalo, New York is set to be the hottest housing market of 2025, retaining its title from 2024, thanks to strong job growth and limited housing supply, according to a new report. As new jobs fuel competition for homes, the demand continues to outstrip availability, driving up prices in cities throughout much of the country.

An unassuming Midwest city has surprisingly ranked as the hottest housing market in the country, according to Realtor.com.

Seattle, WA, January 17, 2025-Buffalo, New York will be the hottest major housing market in 2025, according to a new analysis by Zillow, the first time a market has held the title in back-to-back years. Relative affordability and few homes for sale are common threads among what should be the most competitive markets for buyers this year.