Zillow's forecast reveals that Buffalo, New York, is projected to be the hottest housing market in 2025, followed closely by Indiana, driven by affordability and job growth.
Anushna Prakash, a data scientist at Zillow, states that the common factors among 2025's hottest housing markets include affordability compared to nearby markets and significant inventory shortages.
Despite challenges like high home prices and inflation leading to reduced buyer demand, forecasts suggest a potential increase in homebuying competition in 2025, especially in select metros.
The competition for homes in the projected hottest markets arises from a persistent inventory shortfall that limits sales, amplifying the struggle for buyers to secure properties.
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