This has been the hottest housing market in the United States for two years running
New Report: This Is the No. 1 City People Want to Move to in 2025
Updated on Feb. 19, 2025
Between remote work opportunities and a post-pandemic desire to cultivate a more balanced life, many people are rethinking where they want to live. But even if you’re not chasing the freedom (and financial benefits) that a remote job in a cheaper area offers, you may be making a move for any number of reasons. Perhaps you’re looking for a great place to raise your growing family or you’re settling down into retirement. So where should you put down roots?
According to a new report by real estate site Zillow, the hottest U.S. housing market right now happens to be an unsung gem. With affordable housing, new industry growth and the revival of local businesses, this city is one of the most popular for homebuyers for good reason. Read on to find out which city has people flocking its way—and to see if it could be a good fit for you.
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How did Zillow determine the top cities of interest?
To come up with its list of the nation’s hottest housing markets, Zillow zeroed in on the country’s 50 most populous metro areas. It analyzed various metrics, including forecasted home-value growth, forecasted acceleration in home-value appreciation, how many days a home is listed before it sells, projected changes in the labor market and projected changes in the number of homeowner households.
Which city do people most want to move to in the United States?
This will come as no surprise to the people who happily live there, but Buffalo, New York, topped the list this year—and Zillow had forecasted Buffalo to be the hottest market in 2024 as well.
Buffalo has been enjoying a steady stream of accolades over the past few years. In fact, Reader’s Digest named it one of the Nicest Places in America in 2023.
Why do so many people want to move to Buffalo?
There are a number of reasons why Buffalo has the hottest housing market right now. To help explain its draw in detail, we talked with Joe Saccone, who has more than 20 years of experience as a residential real estate agent in the greater Buffalo area. Here are the top four reasons he sees Buffalo as a great place to buy a home:
Affordability
This is one of Buffalo’s biggest draws. “Compared with cities like New York, Boston or Chicago, homebuyers in Buffalo can afford larger properties, historic homes or even investment opportunities without breaking the bank,” Saccone says. “The lower cost of living allows residents to enjoy a comfortable lifestyle without excessive housing expenses.”
New growth
Over the past 20 years, Buffalo has undergone a revitalization both in community spaces and job industries. “The waterfront has been completely transformed, and the downtown core has seen dozens of vacant properties renovated and restored since the early 2000s,” Saccone says. “Industries like health care, tech and advanced manufacturing are fueling job growth, while new businesses, restaurants and cultural attractions continue to bring fresh energy to the region.”
Quality of life
Quality of life and access to outdoor activities is another reason Buffalo is a great place to live. “Buffalo offers a vibrant lifestyle with a very strong sense of community,” Saccone explains. “The region has an easygoing pace of life that many find appealing.”
Plus, if you love being outdoors, there are many year-round activities to enjoy, including boating on Lake Erie, hiking in Letchworth State Park and skiing in Ellicottville—all within a short drive, he says.
Rental-income opportunity
Many of Saccone’s younger clients choose to purchase two-family homes or “doubles” as their first homes, which allows them to have a tenant and keep their housing costs low. “I have many 25- to 30-year-old clients enjoying a wonderful home with a yard, garage, basement and attic, while their tenant pays for most of their mortgage,” he says. “These clients are able to build wealth as their properties are appreciated.”
What other cities rounded out the top 10?
Many of the cities rounding out the top 10 are metropolitan areas close to major Northeastern cities like Boston and New York. The reason? Buyers who can work remotely may be able to retain their “big city” salaries while slashing their housing expenses by moving to cities like Buffalo, Saccone says.
- Buffalo, New York
- Indianapolis, Indiana
- Providence, Rhode Island
- Hartford, Connecticut
- Philadelphia, Pennsylvania
- St. Louis, Missouri
- Charlotte, North Carolina
- Kansas City, Missouri
- Richmond, Virginia
- Salt Lake City, Utah
Is now a good time to move?
The answer to this depends on a lot of factors, including where you currently live, whether you currently own a home and what the interest rate on your mortgage is. While mortgage rates have lowered significantly since their 8% peak in late 2023, the average 30-year fixed rate is still 7.03% as of mid-February, according to Bankrate’s weekly lenders survey. If your current rate is less than that, your monthly payment could end up being higher if you move now.
But even though home prices have risen significantly in recent years, in markets like Buffalo, they are still well below the national average. “This allows first-time buyers, young professionals and families to purchase homes with reasonable mortgage payments,” Saccone says. “That’s something that’s become increasingly difficult in larger metro areas.”
In short: Whether now is a good time to move depends on your circumstances. But if it is the right time for you, Buffalo is a great place to go.
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Sources:
- Zillow: “Why Buffalo Is 2025’s Hottest Market (Again)”
- Joe Saccone, residential real estate agent in the greater Buffalo area; interviewed, February 2025
- Bankrate: “Mortgage Rates Tick Up, Stay Above 7%”
