These five cities have the hottest housing markets in the U.S.

Which cities have the hottest housing markets?

Our analysis found that the housing markets in a handful of cities stand out as especially fast-moving and competitive, with homes spending just a few days on the market, rarely selling below list price and experiencing razor-thin price cuts when they do.

These hot housing markets tend to have something else in common: geography. While markets in the South and West have often boasted high or increasing demand in recent years, four of today’s five hottest housing markets (and eight of the top 10) are located in the Northeast. A lone Midwestern city rounds out the top five.

1. Hartford, Connecticut

We found that Hartford, Connecticut, has the hottest housing market in the nation. In spring 2025, the median time for homes in Hartford to last before reaching “sale pending” status was just six days — the third-shortest time of all the cities we analyzed. The Constitution State capital also ranks well in other key market indicators: Hartford boasts the third-largest share of homes sold above list price (60.5%) and the third-smallest share of homes sold below list price (29.1%).

Low supply plays a critical role in Hartford’s housing market story. Unfortunately, some efforts to increase the affordable housing stock have failed to gain legs in the state legislature. In late June 2025, a bill aimed at addressing Connecticut’s housing crisis passed both chambers of the state’s general assembly but was ultimately vetoed by the governor, disappointing some housing advocates and policy experts.

Solutions may be on the horizon, though — Gov. Ned Lamont plans to call a special legislative session later this year to focus on housing policy.

2. Rochester, New York

Rochester, New York, earned its position as one of the nation’s most competitive housing markets by taking first rank in a number of key market indicators. During spring 2025, 68.6% of homes were sold above list price — the highest share in the country. The city also boasts the lowest percentage of homes sold below list price — just 23%. Finally, the “Flower City” has the smallest share of listings with a price cut — just 9%, or fewer than 1 in 10 homes.

Rochester might have taken the overall top rank for the hottest housing market in the country if not for a low score in one important indicator: In spring 2025, Rochester had the second-largest median price cut of the cities we compared, at 5.5%. (For reference, if you apply that price cut to the city’s current median home price of $236,146, you’re looking at a revised price tag of about $223,000, a savings of roughly $13,000.)

It remains to be seen if Rochester will see more price cuts, however, or if homes in the area will continue to be snatched up too quickly (the median is currently eight days) to warrant one.

3. Manchester, New Hampshire

In Manchester, New Hampshire, a strong share of homes are selling above list price — 58.8%, or nearly 6 in 10, the fourth-highest percentage in the country. Manchester also has the fourth-smallest share of homes sold below list price (29.8%). Additionally, the median time for homes to spend on the market is just seven days. That’s the eighth-fastest turnaround of all the cities we studied.

So, what factors are driving up demand in Manchester? One is snowbirds returning home to roost, said Realtor Suzanne Damon in a recent interview for the New Hampshire Business Review. As home insurance prices rise dramatically in Florida, many folks who left the Granite State to relocate to Florida are moving back north. Manchester’s proximity to the far more expensive Boston and an influx of remote workers are adding further pressure to the housing market, Damon added.

4. Lancaster, Pennsylvania

Ranked fourth overall, Lancaster, Pennsylvania, takes the top spot for a key housing market indicator: Of all the cities we analyzed, Lancaster boasts the fastest time to “sale pending” status, with a median time of just five days. Additionally, just under 1 in 3 homes (32.7%) are sold below list price, the fifth-best in the nation for that metric. And among the five hottest housing markets, Lancaster saw the smallest price cuts, with a median price cut of just 2.5%.

5. Madison, Wisconsin

Rounding out the top five hottest housing markets is Madison, Wisconsin. In spring 2025, Madison homes spent a median time of just eight days on the market before a pending sale. However, the Badger State capital stands out even more with another data point: Just 11.6% of home listings in 2025 saw price cuts, the fourth-lowest share of all the cities we compared.

The increased demand in Madison is driven in part by an influx of new residents. With new residents drawn to the strong quality of life, economy and job market, the city’s population grew nearly 4% from 2020 to 2024, far outpacing the national average rise of 2.6%.

Which cities have cooler housing markets right now?

In Naples, Florida, the nation’s coolest housing market, the median time for homes to spend on the market is 67 days, and only 3.3% of homes sold above list price in spring 2025.

The 10 cities with the coolest housing markets are all located in Florida and Texas, with notable clusters in South Texas and along Florida’s southern coasts:

1. Naples, Florida
2. Laredo, Texas
3. Brownsville, Texas
4. Cape Coral, Florida
5. McAllen, Texas
6. Miami, Florida
7. Crestview, Florida
8. Longview, Texas
9. Port St. Lucie, Florida
10. North Port, Florida

Several of these Florida cities are also among the metros where home prices are falling the fastest.

It’s not a coincidence that Texas and Florida are also the two states leading the nation in new home construction. While each city’s housing market involves a unique mix of factors, this increase in supply may partially explain the market cooldown. According to recent reporting by Newsweek, Florida saw an influx of new residents during the pandemic as remote work allowed many Americans to relocate to the state, seeking its sunny weather, low taxes and affordable housing.

However, as home prices, mortgage rates and home insurance costs skyrocketed, that pipeline of demand has dried up. While some may be concerned about the housing slowdown in the Sunshine State, other experts see opportunity pending as prices and competition recede from their recent high-water marks. According to a recent report from Florida Realtors, the housing market is evening out — and that’s good news for both buyers and sellers.

Which U.S. cities have the most competitive housing markets?

Across the country, where are housing markets hopping — and where are sales slowing to a crawl? Dip into the data to see how your city ranks.

Tips: How to navigate a competitive housing market

So, you’ve taken the temperature of your local housing market. If the thermometer is reading “hot,” don’t despair — while the market’s velocity or volatility might add stress to your homebuying journey, there’s plenty you can do to prepare for choppy waters.

To sail through a crowded housing market with confidence, follow these tips:

• Find trusted partners. Selecting a seasoned real estate agent may be the most important step in your homebuying journey. Look for someone who has experience in the neighborhood or type of home you’re looking for, and make sure you feel comfortable enough with them to communicate openly and honestly through the process.
• Know your priorities. Take time to reflect on what you’re most looking for in a home and where you’re willing to sacrifice. Making a written list of “must haves” and “nice to haves” for your home will clarify what you value and help you and your real estate agent make quick decisions.
• Get preapproved for a mortgage early. A preapproval letter can help you move fast when it’s time to move through the mortgage process. You need to provide details about your income, assets, debts and employment to secure a letter, so having one in hand shows that you’re a qualified buyer and ready to make a deal.
• Check listings midweek. When a market’s moving fast, a home that’s listed on a Thursday or Friday could be gone by Monday since deals are often made on weekends. Consider scrolling through listings on Tuesdays or Wednesdays to get an accurate picture of what’s available.
• Make strong offers — but don’t go overboard. Falling in love with a listing only to lose the offer to a higher bid can be an emotional whirlwind. Work with your real estate agent to determine what would make a competitive offer in the area you’re looking to buy, but don’t get carried away in a bidding war for the “perfect home” that busts your budget.
• Prepare to be patient. It’s highly possible that you’ll need to make a few offers on different homes before striking gold. Revisit your list of values — and your predetermined maximum bid — to stay grounded, and trust that the right home will find you when it’s the right time.

Methodology

We analyzed the latest Zillow data to identify the hottest housing markets among 200 of the most populous U.S. metro areas. All metrics are based on the most recent available three-month averages, though exact time frames vary slightly by metric, as noted below.

Our analysis focused on two key indicators of market heat:

• Time on the market (65%): Measures the median number of days a home took to reach “pending” status (March to May 2025). A faster pace indicates stronger buyer demand.
• Competition indicators (35%): Higher above-list sales and fewer price reductions signal greater competition:
  • Percentage of homes sold above or below list price (February to April 2025)
  • Share of listings with a price cut (March to May 2025)
  • Median size of price cuts, as a share of list price (March to May 2025)

For each metric, the best-performing metro received the top score. Relative scores were then scaled and combined for a final composite score out of 100.

Reference policy

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Questions?

For questions about the data or if you'd like to set up an interview, please contact rsowell@consumeraffairs.com.