Buffalo, New York, a city forged in fierce winters, stands unchallenged as the hottest housing market for 2025, as crowned by Zillow. For the first time in history, a city has held this title two years running.

In Buffalo, the battle for homes grows relentless. Jobs are surging ahead, but builders lag behind. Zillow’s chief economist, Skylar Olsen, laid it bare: “Growth in construction must match the pace of demand. In Buffalo, as the snow falls, the housing market heats up.” Nationwide, buyers might see more homes on the market and steadier prices, but turbulent mortgage rates remain a wild card.

Zillow’s ranking of 50 metro areas weighs local home values, sales speed, job growth per home built, and the rise in owner-occupied households. Buffalo dominated in 2024, with sellers holding the upper hand. The city’s job growth outstripped new-home construction, forcing prices higher as newcomers pressed into a limited market.

Despite rising competition, Buffalo offers refuge in its affordability. The median sales price in November 2024 stood at $250,000—far below the U.S. median of $406,100. Real estate brokers describe a wave of returnees and remote workers rediscovering Buffalo. Although inventory has dropped, people are returning to the city thanks to lifestyle changes such as remote work.

Buffalo’s proximity to Canada adds to its allure. Collier noted a trend: “I’ve worked with families split between the U.S. and Canada, choosing Buffalo for its access to both.”

Following Buffalo, markets like Hartford, Providence, Indianapolis, and Philadelphia round out the top five for 2025. Hartford leads in projected price growth at 4.2%, though Zillow foresees a slowdown across the board. Virginia Beach soared to No. 13 from No. 36 last year, driven by job growth outpacing housing supply. Meanwhile, Memphis plummeted to No. 43, burdened by excess building and sluggish employment gains.

Buffalo’s fire burns bright, and the storm of demand shows no signs of breaking. Only time will tell if its builders can match the resilience of its people.