For the second consecutive year, Buffalo, New York, has been recognized as the “most popular” real estate market among the 50 largest cities in the United States, according to online brokerage Zillow.
Zillow’s rankings for 2025 identify the “most popular” real estate markets based on the fastest growth in home values and buyer demand. The metrics evaluated include projected price increases, the speed at which homes sell, inventory shortages, rising rents, and local employment and population growth. Data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, and Zillow’s own listings were utilized in this analysis.
The cities that ranked as the most attractive often tend to be mid-sized with housing prices below the national average, which indicates that buyers are looking for more affordable options amid rising prices. Despite the price increases in Buffalo, homes remain relatively affordable, with an average value of $223,812, significantly lower than the national average of $356,585.
Additionally, other cities that made the top five markets include Indianapolis, Indiana; Providence, Rhode Island; Hartford, Connecticut; and Philadelphia.
One of the primary reasons Buffalo continues to hold the number one spot is its affordability, along with other contributing factors. The report indicates that job growth in the city has consistently outpaced new construction, with more than two jobs created for every home built since the pandemic. This imbalance has increased competition and driven home prices up.
“New jobs often lead to new residents, which heightens competition and elevates prices unless builders can meet the additional demand,” Zillow noted in its report. Buffalo is a case in point, with demand consistently exceeding supply.
While it’s anticipated that the U.S. housing market will grow at a slower pace in 2025, Buffalo’s robust regional economy, combined with limited housing inventory, has allowed the city to maintain its top ranking in Zillow’s listings.
In summary, Buffalo’s mix of affordability, strong job growth, and limited housing supply makes it an attractive destination for homebuyers, underscoring a positive outlook for its real estate market despite broader national trends.