Buffalo, New York, tops Zillow’s forecast of the most competitive housing markets in 2025. It is the second year in a row Buffalo has topped the list.
The D.C. metro ranks No. 28 out of 50 cities on the competitive forecast list. Baltimore is No 33.
Zillow ranks cities on competitiveness in the new year not only on price gains, but also relative affordability, the number of homes for sale and job growth per home homes that are being constructed. Zillow says 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 growth far faster than buildings are adding homes,” said Skylar Olsen, Zillow’s chief economist.
Buffalo has seen the most new jobs per new homes permitted, a measure of expected demand. New jobs can mean new residents with raises competition. Buffalo also benefits from lower-than-average home prices, which has bolstered demand.
Virginia Beach, Virginia, rose the fastest in this year’s competitive rankings compared to 2024, rising 23 points to No. 13 this year, driven by job growth that has far outpaced new home permitting, Zillow said. Memphis fell the farthest, with new home permitting that eclipsing slow job growth.
Despite falling in the middle of the pack, Zillow still predicts factors that will keep the D.C. metro housing market competitive. The number of homes for sale in 2025 this year in the D.C. region is expected to be almost 39% lower than it was in the years before the pandemic.
Zillow’s full 2025 of hottest markets can be found online.
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