The top 20 “hottest housing markets” predicted this year nationwide include just one metropolitan area in California.
Real estate company Zillow analyzed and ranked the 50 most populous metropolitan areas nationwide based on data that included forecasted home value appreciation, how long a home was listed for from January to November 2024 and the projected change in the number of owner-occupied households — a term used to describe a home lived in by the person that owns it, said the Census Bureau — to determine the most competitive housing markets in America this year. Zillow also looked into home construction activity for the ranking.
“Construction that keeps pace with an area’s growth remains a crucial piece of keeping homes available and accessible. In chilly Buffalo, competition among buyers will remain hot, with employment growing far faster than builders are adding homes,” said Skylar Olsen, Zillow chief economist, in a news release. “Shoppers nationwide should see more options for sale than in recent years, along with slow and steady price growth. That’s the good news. But both buyers and sellers should expect unpredictable mortgage rates.”
The most competitive markets this year share characteristics such as relative affordability and “supply that trails demand,” according to Zillow.
Taking the top spot in the ranking is Buffalo, New York, followed by Indianapolis and Providence, Rhode Island.
San Diego, Riverside, Los Angeles: See what California cities made the Zillow hottest housing markets list
San Diego ranks No. 19 on the hottest housing market list. Five other metros in California were analyzed for this list. Here’s how they rank:
- Riverside: No. 22
- Los Angeles: No. 34
- Sacramento: No. 37
- San Jose: No. 48
- San Francisco: No. 49
San Francisco and San Jose are described as among the “coolest” metro areas in 2025.
“These markets are characterized by weak demographic and job market pressures relative to the housing environment and flat or falling home value projections,” Zillow said.
What are the top 10 hottest housing markets in the U.S.?
- Buffalo, New York
- Indianapolis
- Providence, Rhode Island
- Hartford, Connecticut
- Philadelphia
- St. Louis
- Charlotte, North Carolina
- Kansas City, Missouri
- Richmond, Virginia
- Salt Lake City
Paris Barraza is a trending reporter covering California news at The Desert Sun. Reach her at pbarraza@gannett.com.
