Homebuyers Are Seeking Affordability. Here's Where They're Finding It.

Merriam-Webster declared “slop” 2025’s word of the year, but here’s another recently inescapable term: “affordability.” Financial worries among consumers can be felt from the supermarket to the real estate market. And for evidence of the latter, look no further than real estate app and website Zillow Group’s ranking of the most popular cities homebuyers are shopping in this year.

What was the most popular real estate market in 2025?

The most popular real estate market in the country in 2025 was Rockford, Illinois, a city about 90 miles northwest of Chicago. It comes as little surprise, however, since Rockford ranked number two on Zillow’s 2024 findings. But overall, this year’s list represents a shift toward the Midwest as the most desirable region, along with some adjacent Northeast markets like Albany, New York and Allentown, Pennsylvania. The only outliers in the top ten are Abilene, Texas and a city in the perennially hot Bay Area market, Berkeley, California.

Zillow determined its ranking by analyzing “housing metrics in cities across the U.S. that reflect consumer demand, including page-view traffic, home value growth and how quickly homes sell.”

What were the top ten housing markets this year?

The full top ten most popular markets in 2025 are:

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

According to Zillow, what most of these markets have in common are “prices under $350,000, growing job access, and communities that provide more breathing room and less financial strain,” and they generally “sit near major job centers or along key commuter corridors, giving residents big-city opportunities without big-city costs.”

“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,” Zillow Senior Economist Orphe Divounguy says. “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.”

What are the new trends in the real estate market?

By contrast, in 2024, the list skewed to the Northeast. Four of the top ten spots went to cities in Connecticut, and Manchester, New Hampshire took the top spot. Allentown made both lists, but this year it dropped to the bottom from a 2024 ranking of sixth.

However, the Midwest isn’t the only hotspot in 2025. Zillow also highlighted Kailua, Hawai’i as the most popular coastal city. Portland, Maine ranked as the most popular vacation town. Though, you’ll find even more variety in the Midwest. The most popular “small town” is Lake Forest, Illinois, and Normal, Illinois — home of Illinois State University — was named the most popular college town. Read the full report on Zillow.com.