Top 10 Most Popular Housing Markets of 2025 for Homebuyers

If you're anyone looking at buying a home in 2025, or just curious about where the real estate action is, you're in luck. It's pretty clear from the data that affordability and livability are king in the housing market this year. Forget the idea that you have to break the bank to live in a desirable place. The data from Zillow tells us that places you might not have expected are drawing the most attention, and it's all about finding that sweet spot between a reasonable price tag and a good quality of life.

Top 10 Most Popular Housing Markets of 2025 for Homebuyers

As a long-time observer of housing trends, I’ve seen fads come and go. The intense focus on coastal metropolises and hyper-expensive markets seems to be fading, replaced by a more grounded approach. People are looking for value, for communities where they can actually afford to put down roots, and that's exactly what we're seeing play out in 2025. The Midwest, in particular, is having a major moment, offering up cities that blend affordability with growing job opportunities and charming local vibes. This isn't just about numbers; it's about people making smart choices that fit their budgets and their desire for a fulfilling life.

Based on Zillow's extensive analysis of what home shoppers are looking for – from how often they view listings to how fast homes are selling – the message is loud and clear: midsize cities are the real stars of 2025. These aren't ghost towns; they're vibrant places with their own unique character, often situated within reach of larger economic hubs. Let's dive into the top 10 most popular housing markets of 2025 and see what makes them tick.

The Midwest Takes Center Stage

It’s fascinating to see how often Midwestern cities are popping up. This region has always been known for its down-to-earth prices, but this year, it’s also proving it has so much more to offer. The synergy of affordability, improving job markets, and a strong sense of community is making these cities incredibly attractive.

Zillow's Top 10 Most Popular Housing Markets of 2025: The Breakdown

Here’s the list that everyone’s talking about, showing us where buyers are putting their money (and their eyeballs) in 2025:

1. Rockford, Illinois
2. Berkeley, California
3. Albany, New York
4. Dearborn, Michigan
5. Toledo, Ohio
6. Carmel, Indiana
7. South Bend, Indiana
8. Abilene, Texas
9. Springfield, Illinois
10. Allentown, Pennsylvania

What’s really striking about this list is how many of these markets offer homes for under $350,000. That's a game-changer for a lot of people who have felt priced out of the market for years. It’s not just about cheap housing, though. These cities are also experiencing job growth and boast communities with the kind of character and amenities that make people want to stay. They’re smartly positioned near bigger cities, offering residents the best of both worlds – access to major career opportunities without the crushing cost of living.

My Take: I see this as a healthy shift. For a long time, the focus was solely on the “hot” coastal cities. But people are realizing that there's a lot of value and a great lifestyle to be found in the heartland. It’s about a more sustainable approach to homeownership, where your mortgage doesn't consume your entire life.

What Makes These Markets So Popular?

It’s not just random chance that these cities are topping the charts. Zillow’s analysis looked at several key factors that indicate buyer interest and demand.

• High Page View Traffic: Shoppers are spending a lot of time looking at homes in these areas, even if they don’t live there. This tells us there’s a broad appeal that extends beyond the local population.
• Fast-Moving Homes: Homes in these popular markets are going pending in just days, not weeks. This is a strong indicator of strong demand and a competitive environment.
• Affordable Home Prices: This is the big one. Many of these markets are offering home values that are significantly lower than national averages, making homeownership more accessible.
• Growing Job Hubs: These cities aren't stagnant. They are actively attracting businesses and creating new job opportunities, which is crucial for long-term housing market health.
• Quality of Life: Beyond jobs and prices, these cities offer attractive communities with parks, local businesses, and a sense of belonging.

Orphe Divounguy, Zillow Senior Economist, says it best: “Over the past few years, stretched affordability has defined the housing market, and this year's list shows just how strongly it's shaping where Americans choose to shop. These cities offer the mix buyers are looking for: attainable home prices, expanding job hubs, and lively neighborhoods with parks, shops and community spaces.”

Deep Dive into Some Standouts

Let’s take a closer look at a couple of these winning markets to understand their unique appeal.

• Rockford, Illinois: The Number One Choice
  Rockford has claimed the top spot for a reason. Located just about 90 minutes from Chicago, it offers that coveted access to a major metropolitan area without the hefty price tag. It’s not surprising that more than three out of five page views for Rockford homes came from shoppers outside the immediate area. And the speed? Homes there are going under contract in an astonishing five days. That kind of activity speaks volumes.
• Toledo, Ohio: Leading the Large Cities
  Toledo, Ohio, is once again leading the pack among larger cities. With a typical home value that’s incredibly accessible (around $126,000 as of this analysis), it’s a dream for budget-conscious buyers. Add to that its proximity to Lake Erie, its walkable neighborhoods, and a surprisingly vibrant arts scene, and you can see why it’s so appealing.
• Berkeley, California: The Coastal Surprise
  While the Midwest dominates, it’s interesting to note Berkeley’s presence on this list. This West Coast gem proves that even in pricier coastal regions, there can still be pockets of popularity driven by unique factors. Berkeley’s appeal likely stems from its renowned university, its progressive culture, and its strong connection to the Bay Area's job market, even with higher price points. It shows that even expensive markets can have attractive sub-markets.

My Perspective: I believe the success of cities like Rockford and Toledo highlights a broader trend of re-evaluating what “desirable” truly means. It's less about chasing the hype of a specific zip code and more about finding sustainable living. When you can get a great home, a good job, and a friendly community without crippling debt, that’s a win.

Beyond the Top 10: Regional Favorites

Zillow also highlighted some top cities within different categories and regions, giving us an even more nuanced picture of the 2025 housing market.

By Geographic Region:

• Northeast: Albany, New York
• West: Berkeley, California
• Midwest: Rockford, Illinois
• Southwest: Abilene, Texas
• Southeast: High Point, North Carolina
• Mountain Region: Nampa, Idaho

These regional favorites often share similar characteristics to the overall top 10 – a blend of affordability and opportunity. Abilene, Texas, for instance, offers a lower cost of living and a growing economy, making it a strong contender in the Southwest.

Other Popular Categories:

• Most Popular Large City: Toledo, Ohio
• Most Popular Coastal City: Kailua, Hawaii (interestingly, this highlights a desire for lifestyle even in a high-cost area)
• Most Popular Small Town: Lake Forest, Illinois
• Most Popular Vacation Town: Portland, Maine
• Most Popular College Town: Normal, Illinois
• Most Popular Retirement Town: Bullhead City, Arizona

The diversity in these categories is quite telling. It shows that different buyer needs are being met across various types of locations. People looking for a vacation spot, a place to retire, or a vibrant college town are still finding attractive options, often in places that offer more financial breathing room.

My Thoughts: The inclusion of Kailua, Hawaii, as the most popular coastal city, despite its high cost, is a good reminder that lifestyle remains a massive driver for some segments of the market. However, the overwhelming presence of midsize and affordable markets in the overall top 10 indicates that for the majority of home shoppers in 2025, practicality and financial sense are making a strong comeback.

What This Means for Buyers and Sellers

For buyers, the message is encouraging. Your dream of homeownership might be more attainable than you think. Don't overlook cities that might not be on the traditional “hot list” but are offering genuine value and quality of life. Do your research, explore these emerging markets, and you might be pleasantly surprised by what you find.

For sellers, understand that while demand is high in these popular markets, your pricing and presentation still matter. Homes that offer good value and are well-maintained will still attract multiple offers and sell quickly. It’s about meeting buyer expectations for affordability and desirability.

The housing market is shaping up to be one where smart choices and a focus on balanced living are rewarded. The era of chasing ever-inflating prices seems to be taking a backseat to finding places where life is not only possible but truly enjoyable, without the constant financial pressure.