BAM Key Details:
- Zillow’s 2025 rankings show most top housing markets have typical home values under $350,000.
- The Midwest accounted for a majority of the top 10 markets, highlighting how affordability and job access are shaping buyer demand heading into 2026.
The housing market has been stuck in a narrow lane for a while now. Mortgage rates stayed above 6%, inventory is still tight in many markets (though not all), and affordability has become a central constraint in buyer decision-making.
Zillow’s 2025 rankings of the most popular housing markets make that trend hard to miss.
Based on real search behavior, not surveys or sentiment, Zillow’s list tracks where buyers are actually spending their time. The rankings combine page-view traffic, home value growth, and how quickly homes go under contract.
Together, those signals paint a clear picture of where demand is showing up as the market heads into 2026.
The Big Pattern: Affordability Is Running the Show
Across Zillow’s rankings, one theme keeps repeating. Buyers are more resistant to hype around listings. What they’re chasing now is what feels financially survivable.
Midsize cities rose sharply in popularity this year, especially across the Midwest. These markets tend to sit in a sweet spot, with lower price points, access to job centers, and neighborhoods that still offer walkability and everyday amenities.
Zillow found most of the top 10 markets posted typical home values under $350,000, a line that increasingly separates what buyers can act on from what they simply scroll past.
Zillow Senior Economist Orphe Divounguy connected those dots directly, tying buyer behavior back to the pressure points that have defined the market for years.
“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.
“With high costs and limited inventory persisting in major coastal metros, these markets stand out as compelling alternatives—places where affordability brought shoppers in, and lifestyle convinced them to stay.”
Zillow’s Top 10 Most Popular Markets of 2025
Zillow’s top 10 list offers a snapshot of where buyer attention has shifted, and it looks very different from the rankings of a decade ago.
Before digging into individual markets, here’s the full list.
- Rockford, IL
- Berkeley, CA
- Albany, NY
- Dearborn, MI
- Toledo, OH
- Carmel, IN
- South Bend, IN
- Abilene, TX
- Springfield, IL
- Allentown, PA
Source: Zillow
The Midwest dominates the list, accounting for a majority of the top markets. The Northeast also shows up repeatedly, while just one West Coast city makes the cut.
That distribution alone says a lot about where affordability still exists.
Popular Markets Are Defined By Movement
Clicks are easy. Commitments are not. Zillow’s analysis makes a point of separating curiosity from action. And the difference is striking. In many of the most popular markets, homes are going pending in days rather than weeks.
That speed suggests real competition, not casual browsing. Buyers are out there exploring their options, ready to act when they find a home that ticks all the boxes (or enough of them).
Zillow also found a large share of page views came from shoppers outside the local metro, pointing to relocation interest and broader demand rather than purely local churn.
Rockford, Illinois, Sets the Pace
Rockford, Illinois, claimed the No. 1 spot overall in 2025, moving up from second place last year.
Located about 90 minutes northwest of Chicago, it offers proximity to a major job hub without the price tag that usually comes with it.
More than three out of five page views for Rockford listings came from shoppers outside the area. Once buyers engaged, things moved quickly. Homes typically went under contract in just five days, making Rockford one of the fastest-moving markets Zillow tracked this year.
It’s a textbook example of what happens when affordability and access line up.
Toledo Shows How Value Still Wins in Large Cities
Among cities with populations over 250,000, Toledo, Ohio, once again ranked as the most popular large city.
With a typical home value of $126,000, Toledo remains accessible in a way few large cities are.
That affordability is reinforced by walkable neighborhoods, Lake Erie access, and a growing arts scene. Lincoln, Nebraska, and Anchorage, Alaska, followed as the second- and third-most popular large cities, but Toledo continues to stand out for value alone.
Lifestyle Categories Still Matter
Zillow’s rankings also break markets into lifestyle-driven categories, showing that affordability may open the door, but livability still matters.
- Kailua, Hawaii, ranked as the most popular coastal city.
- Portland, Maine, claimed the top vacation town spot for the second year in a row.
- Normal, Illinois, home to Illinois State University, led the college town category.
- Bullhead City, Arizona, topped the retirement town list, supported by access to the Colorado River and nearby amenities in Laughlin, Nevada.
Each category winner reflects a balance between price sensitivity and quality of life.
Regional Winners Point to a More Dispersed Market
When Zillow breaks the rankings down by region, it’s pretty clear demand is spreading, not clustering.
- Northeast: Albany, New York
- West: Berkeley, California
- Midwest: Rockford, Illinois
- Southwest: Abilene, Texas
- Southeast: High Point, North Carolina
- Mountain region: Nampa, Idaho
No single coast dominates. Instead, affordability and livability are pulling attention in multiple directions at once.
What This Signals Going Into 2026
Zillow’s 2025 rankings reinforce a reality that’s been building over the past few years. Buyers aren’t waiting for prices or rates to go down. Not if they don’t have to, anyway.
Instead, they’re adjusting to the numbers, seeing new opportunities where once they saw only a growing gap between today’s prices and what they saw just a few short years ago.
Affordability now includes more than price alone. Commute times, job access, neighborhood design, and long-term sustainability are all part of the calculation. Markets that can deliver on those fronts are where momentum is forming.
Zillow’s data suggests that pattern is the new baseline.
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