20 Hot Real Estate Markets of 2025

In 2025, the phrase hot real estate market carries more weight than ever. It’s marked by fierce competition, constrained housing inventory, and a surge of buyer interest across regions. As mortgage rates fluctuate and housing supply struggles to keep pace with demand, understanding which U.S. metros are truly “hot” is essential for first-time homebuyers, investors, and real estate professionals alike.

What Defines a Hot Real Estate Market?

A hot real estate market is where high demand, limited inventory, and economic momentum converge. These markets share a common DNA: strong job growth, steady population growth, and affordability that still appeals to both first-time buyers and investors.

According to Realtor.com’s 2025 Market Outlook and Zillow’s Housing Market Forecast, the most competitive areas are being driven by three primary factors:

1. Local Economic Strength – Markets with robust employment sectors are fueling buyer demand.
2. Affordability and Value – With national median home prices still elevated, buyers are migrating toward smaller metro areas offering better value.
3. Inventory and Time on Market – The hottest markets are those where listings move fast. Realtor.com data shows homes in top-performing metros spend up to 40% less time on the market compared to the national average.

Together, these elements create a self-reinforcing cycle: demand drives prices, prices attract investors, and investors sustain market momentum.

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20 Hot Real Estate of 2025

This year’s list of 20 hottest markets draws on the latest insights from Realtor.com, Zillow, and U.S. News’s Housing Market Index. From upstate New York to the Sun Belt and Midwest resurgence, these markets are seeing rapid price appreciation, shortened days on market, and strong labor-driven growth.

Here are 20 hot real estate markets in the US that are turning up the heat:

1. Buffalo, New York
2. Indianapolis, Indiana
3. Hartford, Connecticut
4. Providence, Rhode Island
5. Philadelphia, Pennsylvania
6. St. Louis, Missouri
7. Kansas City, Missouri
8. Salt Lake City, Utah
9. Nashville, Tennessee
10. Richmond, Virginia
11. Charlotte, North Carolina
12. Rochester, New York
13. San Jose, California
14. Milwaukee, Wisconsin
15. Seattle, Washington
16. Boston, Massachusetts
17. San Diego, California
18. Syracuse, New York
19. Bakersfield, California
20. Albany, New York

1. Buffalo, New York

Buffalo ranks at the top of Zillow’s list of hot real estate markets for 2025, building on its strong performance in 2024 with steady buyer demand and home value growth. Once known primarily for affordability and modest appreciation, Buffalo is now seeing renewed interest driven by downtown revitalization and a thriving healthcare and education sector.

Home prices rose nearly 5.8% year-over-year in 2024, and while some experts expect moderate gains to continue, future performance will depend on broader economic conditions and local supply trends. With median home values still below the national average, Buffalo remains an attractive choice for first-time buyers and investors seeking long-term potential.

2. Indianapolis, Indiana

Indianapolis ranks second in Zillow’s 2025 report and continues to build its reputation as a hot real estate market in the Midwest. The city’s strong job market, affordable housing, and consistent population growth have created the perfect mix for sustained demand.

Indianapolis homes are selling quickly (often within 20–30 days on market) and rental demand remains high due to its growing tech and logistics sectors. Its combination of steady appreciation and healthy rental yields makes it a balanced market for both homebuyers and long-term investors.

3. Hartford, Connecticut

Hartford continues to shine as one of the hottest housing markets in the Northeast. Benefiting from buyers migrating out of pricier metro areas like Boston and New York City, Hartford offers a compelling balance of affordability and access.

Realtor.com data shows Hartford listings get double the national average views, while homes spend up to 40% less time on the market. The area’s mix of historic housing, strong schools, and expanding insurance and finance sectors make it a magnet for upwardly mobile families.

4. Providence, Rhode Island

Providence stands out as one of New England’s most hot real estate markets, fueled by its vibrant cultural scene, growing job base, and proximity to major cities like Boston and New York. Realtor.com’s September 2025 report ranks Providence among the nation’s top metro areas for buyer activity, with listings receiving above-average views and selling nearly 30% faster than the national median days on market.

Home prices have continued a steady climb, supported by strong demand from both local buyers and out-of-state professionals seeking affordability without sacrificing urban lifestyle. 

5. Philadelphia, Pennsylvania

Philadelphia’s housing market has quietly heated up in 2025, positioning it as one of the hottest large real estate markets on the East Coast. Despite being one of the oldest cities in America, Philly continues to attract younger homebuyers and remote workers drawn by relative affordability compared to New York or Washington, D.C.

Zillow reports moderate but steady home value growth of around 3–4% annually, supported by strong employment in education, healthcare, and biotech. The city’s vibrant neighborhoods are seeing quick sales and tight inventory, while suburban areas continue to gain momentum.

6. St. Louis, Missouri

St. Louis is having a breakout year as a Midwestern hot real estate market, driven by affordability, strong local employment, and consistent population stability. Zillow data shows homes here remain on the market for significantly fewer days than the national average, while price growth has remained healthy without overheating.

With median sale prices well below $300,000, St. Louis stands out as one of the best-value metro areas in 2025.

7. Kansas City, Missouri

Kansas City continues to gain national attention as a hot housing market, thanks to its mix of affordability, infrastructure growth, and strong job creation. The city has seen home prices rise steadily over the past two years, while inventory remains tight across desirable neighborhoods like Overland Park and Lee’s Summit.

With major employers such as Cerner, Honeywell, and Hallmark expanding operations, job growth is keeping housing demand robust. Kansas City’s balanced market conditions make it one of the Midwest’s most attractive investment destinations this year.

8. Salt Lake City, Utah

After cooling from the explosive growth of 2020–2022, Salt Lake City has rebounded in 2025 as a renewed hot real estate market with more stable fundamentals. Demand remains strong among professionals drawn to the city’s thriving tech scene and access to the outdoors.

Zillow’s data shows a 5% rise in home values over the past year, and homes are selling faster than the national average, particularly in suburbs like Draper and Sandy. With its growing population and strong quality of life, Salt Lake City continues to be one of the Mountain West’s more active housing markets, though future performance will depend on broader economic trends and housing supply conditions.

9. Nashville, Tennessee

Nashville remains one of the South’s most sought-after real estate markets, balancing strong economic growth with increasing demand from newcomers. Once considered a boomtown, Nashville has transitioned into a more sustainable but still vibrant market, with home values up roughly 4–5% year-over-year.

Driven by its flourishing entertainment, healthcare, and tech industries, Nashville continues to attract a mix of young professionals and remote workers. 

10. Richmond, Virginia

Richmond continues to emerge as one of the hottest real estate markets on the East Coast, balancing affordability with strong local demand. Zillow reports the average home value around $360,000, holding steady year-over-year, while homes spend a median days on market of just 11 days.

Despite modest appreciation, Richmond ranks among the top 10 most competitive markets in the U.S. according to Zillow, with over 40% of listings selling above asking price.

11. Charlotte, North Carolina

Charlotte remains a hot real estate market, powered by sustained job growth, population growth, and new development. Zillow’s data shows average home values at $395,000, reflecting a slight year-over-year dip of around 1.5%, but local demand remains resilient, particularly in neighborhoods like South End, Plaza Midwood, and Ballantyne.

With inventory still below pre-pandemic levels, Charlotte’s housing market continues to favor sellers. Median home prices hover near $385,000, and homes are selling within 30 days on average. 

12. Rochester, New York

Rochester has quietly emerged as one of the Northeast’s most underrated hot real estate markets in 2025. Zillow’s Market Heat Index ranks it near the top nationwide, driven by quick-selling homes and limited inventory.

The city’s diverse economy, anchored by universities, healthcare, and manufacturing, has fueled stability even as national housing trends shift. Homes here often sell in under two weeks, reflecting fierce buyer competition.

13. San Jose, California

San Jose remains one of the hottest real estate markets in California, driven by strong tech employment and chronically low housing supply. Zillow reports median home values near $1.46 million, up roughly 4% year-over-year, marking one of the sharpest rebounds among West Coast metros.

With inventory levels at record lows, homes in San Jose sell in just 9–12 days on average, and nearly 60% of listings close above the asking price. 

14. Milwaukee, Wisconsin

Milwaukee has emerged as a surprising hot real estate market in the Midwest, with affordability and strong employment growth attracting both buyers and investors. Zillow lists the median sale price at about $254,000, up 4.2% year-over-year, and homes are selling roughly 25% faster than the national average.

With expanding healthcare and manufacturing sectors and growing demand from Chicago-area commuters, Milwaukee’s mix of value and stability makes it a top Midwest market for 2025.

15. Seattle, Washington

Seattle continues to rank as one of the strongest housing markets in the Pacific Northwest, rebounding from its early-2020s cooldown. Zillow reports average home values around $875,000, up 2.5% year-over-year, while limited inventory keeps competition intense.

Tech sector stability, strong job recovery, and limited new construction homes are pushing prices upward once again. With homes selling in under 20 days on average, Seattle remains a high-demand, high-price market that continues to outperform national averages.

16. Boston, Massachusetts

Boston’s real estate market remains red-hot in 2025, with a powerful combination of limited housing stock, strong local incomes, and consistent demand from both students and professionals. The median sale price sits around $790,000, up roughly 3.2% year-over-year, while inventory remains below two months of supply.

Boston’s mix of world-class universities, healthcare institutions, and biotech companies ensures sustained housing pressure, especially in neighborhoods like Cambridge, Somerville, and South Boston. 

17. San Diego, California

San Diego remains one of the hottest coastal real estate markets in the U.S., with strong buyer demand and limited housing supply driving steady appreciation. Zillow lists the median home value near $990,000, up 3.6% from 2024, while homes typically go pending within 12–14 days.

While it has historically shown resilience, future performance will depend on economic conditions, affordability, and inventory trends.

18. Syracuse, New York

Syracuse is having a breakout year as one of upstate New York’s fastest-growing real estate markets. Fueled by economic revitalization and major tech investments, particularly Micron Technology’s $100 billion semiconductor project, the region is seeing new housing demand unlike any time in the past decade.

Inventory remains tight, and Zillow’s data places Syracuse firmly in a seller’s market. With rising demand from remote workers and expanding infrastructure, it’s poised for continued growth in both home values and rental income potential.

19. Bakersfield, California

Bakersfield stands out in 2025 as one of California’s most affordable hot real estate markets, offering strong value and steady home appreciation compared to the state’s coastal metros. Zillow data shows the median home value around $375,000, up roughly 3% year-over-year, while homes sell within about 20 days on average.

The city’s growing energy, logistics, and healthcare sectors continue to support local job growth, drawing buyers from higher-priced regions like Los Angeles and the Bay Area. 

20. Albany, New York

Albany continues to strengthen its position as a hot real estate market in 2025, thanks to its expanding tech and government employment base. With buyers priced out of Boston and New York City, Albany offers a more affordable gateway into the Northeast corridor. Median home prices are still below $350,000, yet demand has surged by more than 12% year-over-year. 

The city’s growing biomedical and education sectors are keeping both housing and rental property markets active, appealing to professionals seeking stability and affordability.

Related Article: US Markets to Watch in 2025

Trends and Takeaways: What 2025’s Hot Real Estate Markets Tell Us

The hot real estate markets of 2025 reveal a clear shift in American housing dynamics. For investors and first-time homebuyers learning how to find hot real estate markets, these shifts highlight the importance of tracking affordability, job growth, and migration patterns rather than focusing solely on traditional big-city hubs.

Three powerful real estate trends define this new wave of housing market activity:

1. Affordability Is the New Magnet

With mortgage rates still above pre-pandemic levels, affordability has become the strongest driver of migration. Buyers and investors are seeking markets where price growth is steady but sustainable.

2. The Midwest and Northeast Are Rising

2025 has been the year of the “Rust Belt Revival.” Cities across Wisconsin, upstate New York, and New England dominate Realtor.com’s and Zillow’s lists, showing that consistent job creation and modest home prices can outperform flashier, overheated markets of prior years.

3. Sustainability Over Speculation

Unlike the speculative booms of 2021–2022, this year’s growth is rooted in stable fundamentals: diversified economies, measured price appreciation, and consistent demand from both local and inbound buyers. These conditions suggest a more resilient housing cycle ahead; one that rewards patience and smart investing over quick flips.

Please note that the information provided in this article should not be interpreted as financial or investment advice. Real estate market conditions can change rapidly; readers are encouraged to conduct their own research or consult a licensed financial advisor before making any investment decisions.

FAQs

What drives hot housing markets?

Why are houses so expensive right now? Many factors drive hot housing markets, but high demand, low-interest rates, and the availability of funds are key factors. With the onslaught of people working from home, many hot markets for real estate have houses selling for much more than the national average today.

What is a housing bubble?

A housing bubble occurs when there's a high surge in demand for houses, which drives the prices up almost too much. The prices continue to increase, but values don't always follow. Eventually, the prices get unaffordable, and the demand decreases, causing the housing bubble to pop and the housing market to suffer.

Where is the coldest real estate market 2025?

By mid-2025, Jackson, Tennessee was often cited as the coldest U.S. housing market, with Zillow’s Market Heat Index assigning it a low “heat” score of 9 — signaling strong buyer leverage, price cuts, and long listing durations. Other markets in Florida and the Gulf region, such as Brownsville, Gulfport, and Cape Coral, also rank among the “coldest” or softest housing markets in 2025.

The Bottom Line

Today’s hot real estate markets are seeing intense competition, record-low inventory, and homes selling above asking price. While housing supply remains tight, experts predict prices will stay elevated until demand finally cools and new inventory levels out the market. To stay ahead of housing market trends and investment opportunities, explore more insights on our blog and sign up for Concreit's real estate updates.