Midwest dominates Zillow’s most popular housing markets of 2025

Home shoppers in 2025 gravitated toward more affordable, midsized U.S. cities, with Midwestern markets accounting for most of the country’s most popular places to buy, according to new data released by Zillow.

Rockford, Illinois, ranked as the most popular housing market in the country, moving up from second place last year. And the Midwest accounted for the majority of the top 10 markets, alongside several Northeastern cities and one West Coast market.

Most of the top-ranked cities feature median home values below $350,000, access to growing job markets and relatively fast home sales.

Many are located near larger metropolitan areas, offering employment opportunities without the higher housing costs of major cities.

Zillow data shows that these markets attracted significant interest from out-of-area shoppers. In many of them, homes went under contract in days rather than weeks — indicating competitive conditions.

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Berkeley, California, ranked No. 2. It was followed by Albany, New York; Dearborn, Michigan; Toledo, Ohio; Carmel, Indiana; South Bend, Indiana; Abilene, Texas; Springfield, Illinois; and Allentown, Pennsylvania.

“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 said in a statement. “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 based its rankings on measures of consumer demand, including page-view activity, home-price trends and the speed at which homes sell.

Rockford claimed the No. 1 spot after drawing more than 60% of its page views from shoppers outside the local area. Homes there typically went under contract in about five days. Rockford is located roughly 90 minutes northwest of Chicago.

Large metros, small towns

Among large cities with populations of at least 250,000, Toledo ranked highest on the list. The city’s typical home value was about $126,000.

Lincoln, Nebraska, and Anchorage, Alaska, followed in second and third places, respectively.

Kailua, Hawaii, ranked as the most popular coastal city, followed by South Portland, Maine, and Santa Cruz, California.

Lake Forest, Illinois, topped Zillow’s list of small towns, followed by the Ohio cities of Springboro and Oregon.

Vacation and retirement desitnations

Portland, Maine, ranked as the most popular vacation town for the second consecutive year. El Dorado Hills, California, and Coeur d’Alene, Idaho, rounded out the top three.

Normal, Illinois, was named the most popular college town, followed by State College, Pennsylvania, and Lawrence, Kansas.

Bullhead City, Arizona, ranked as the most popular retirement town. The Villages, Florida, placed second, followed by Lake Havasu City, Arizona.

Zillow also identified the leading markets by geographic region: Albany, New York in the Northeast; Berkeley, California, in the West; Rockford, Illinois, in the Midwest; Abilene, Texas, in the Southwest; High Point, North Carolina, in the Southeast; and Nampa, Idaho, in the Mountain region.