Zillow's Most Popular Housing Markets of 2025

Where is buyer demand showing up in 2025? According to a new report from Zillow, the hottest housing markets this year aren't the usual coastal or Sun Belt favorites — they're affordable Midwestern cities.

In this episode of Real Estate News for Investors, Kathy Fettke breaks down Zillow's list of the most popular housing markets of 2025, led by Rockford, Illinois. We look at why buyers are flocking to lower-priced markets with strong job access, fast-moving inventory, and growing out-of-state interest.

You'll also hear which cities are topping Zillow's rankings across categories — from large metros and small towns to vacation destinations, college towns, and retirement markets — and what these shifts signal for real estate investors.

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SOURCE: https://www.zillow.com/research/most-popular-markets-2025-35859/