Top Real Estate Markets Shift in 2025

The Real Estate Market is Shifting

The real estate landscape in the United States is undergoing a significant transformation. After years of favoring sellers, the market has transitioned into what Zillow calls “neutral” territory this summer, according to its updated Market Heat Index. However, these national trends don’t capture the full picture. While some cities see homes staying on the market for weeks, others are experiencing rapid sales.

Cities in the Sun Belt, which were once booming during the peak of the pandemic, are now showing signs of cooling down. These areas, known for their warm climates and affordable living, saw a surge in popularity as people moved for outdoor living and lower costs. But now, the market is shifting.

Zillow senior economist Kara Ng explained that in places like Texas and Florida, builders were able to keep up with demand during the pandemic. “They knew that people really want to live in these places, they were able to build a lot, and now we have more units available in these areas, along with a softening of demand,” she said. This combination has led to a softer market in these regions.

On the other hand, the Northeast and California continue to maintain strong seller’s markets. “These are areas that, either because of geography or building restrictions, they have not been able to build to keep up with demand,” Ng noted. In cities like New York, Connecticut, and Massachusetts, geographic constraints limit the ability to expand outward, forcing development to go upward instead.

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Ng emphasized that in many areas, there are restrictions on increasing density, which leads to a situation where supply cannot meet demand. This imbalance drives up housing prices. Of the cities categorized as “strong seller’s markets,” all but two (San Francisco and Milwaukee) are located in the Northeast.

Some of the strongest seller’s markets in the U.S. right now include:

• Rochester, New York
• Syracuse, New York
• Buffalo, New York
• Hartford, Connecticut
• Springfield, Massachusetts
• Albany, New York
• Bridgeport, Connecticut
• New York, New York
• San Francisco, California
• New Haven, Connecticut
• Milwaukee, Wisconsin
• Providence, Rhode Island

Meanwhile, inventory has increased in places like Florida, which was a popular destination for many during the early stages of the pandemic. According to Zillow, nearly half of the 14 cities identified as “buyer’s markets” are in Florida.

The top buyer’s markets across the U.S. currently include:

• Miami, Florida
• North Port, Florida
• New Orleans, Louisiana
• Urban Honolulu, Hawaii
• Deltona, Florida
• Jacksonville, Florida
• Austin, Texas
• Jackson, Mississippi
• Palm Bay, Florida
• Tampa, Florida
• Atlanta, Georgia
• Knoxville, Tennessee
• Memphis, Tennessee
• Durham, North Carolina

Many other cities are in a “neutral” market in 2025. For more detailed information and interactive maps, you can explore Zillow's data.

This shift in the real estate market highlights the evolving dynamics between supply and demand, influenced by factors such as geographic limitations, building regulations, and changing consumer preferences. As the market continues to adjust, buyers and sellers alike must stay informed about local conditions to make the best decisions.