Why Buffalo is the Hottest Real Estate Market of 2025 (Again!)

[Kevin Green]

Buffalo, New York, has once again been named the nation’s hottest housing market for 2025, marking the first time a city has held this title in consecutive years. Several key factors contribute to Buffalo’s sustained real estate prominence:

1. Employment Growth Outpacing Housing Supply

Buffalo leads the nation in the ratio of new jobs to new homes permitted. This imbalance intensifies buyer competition, driving up home prices as demand outstrips supply.

2. Relative Affordability

Despite recent price increases, Buffalo’s housing market remains more affordable compared to many other U.S. metros. This affordability attracts buyers seeking value, especially those priced out of more expensive regions.

3. Limited Housing Inventory

The number of homes for sale in Buffalo is significantly below pre-pandemic levels, with a reported 46.1% decrease compared to 2018–2019 averages. This scarcity contributes to heightened competition among buyers.

4. Proximity to Major Northeastern Cities

Buffalo’s location near major urban centers like New York City and Boston makes it an attractive alternative for buyers seeking more affordable housing without sacrificing access to urban amenities.

5. Positive Home Value Growth Forecast

While the pace of home value appreciation is expected to moderate, Zillow forecasts a 2.8% increase in Buffalo’s home values for 2025, indicating continued market strength.

In summary, Buffalo’s combination of strong job growth, relative affordability, limited housing inventory, strategic location, and positive home value forecasts solidify its status as the nation’s hottest housing market for 2025.