It's hardest to buy a home in these neighborhoods in 2025

It is much tougher to buy a home in some increasingly desirable neighborhoods this year, with the Midwest becoming more competitive.

Five of the 10 hottest neighborhoods, or where it is the most competitive to buy a home, are in the Midwest in 2025, but the pricey coastal cities of New York and San Francisco are also in high demand, according to a report from real-estate firm Redfin.

“Midwest cities have risen in popularity because they’re more affordable than cities in other parts of the country, but many buyers are now widening their search to the suburbs after being priced out of popular urban areas,” Redfin Chief Economist Daryl Fairweather said in the report.

Here is a list of the 10 neighboorhoods, including three in New York, where it is toughest to buy a home in 2025: 

1. Prospect Heights and Clinton Hill, NY
2. Jenison, MI
3. Campton Hills and St. Charles, IL
4. Fairport, NY
5. Polk Gulch and Russian Hill, CA
6. Great Kills, NY
7. Franklin, WI
8. Prairie Village and Mission Hills, KS
9. Lakeville, MN
10. MN Bowie, MD

Homes are selling faster in the 10 hottest neighborhoods than they were a year ago, bucking the national trend of homes now selling a week slower than last year, Redfin said.

Companies requiring workers to return to the office is what's driving demand in the neighborhoods where it is hardest to buy a home.

“Workers wanted to get out of the crowded city during the pandemic, so they bought or rented properties in upstate New York or elsewhere in the country,” said Ian Rubinstein, a New York Redfin Premier agent, in the report.

“Many companies now require workers to be in the office at least two to three days a week — so people are coming back," he added. "In my opinion, Brooklyn has become even more popular than Manhattan.”

The most competitive neighboorhood, Prospect Heights and Clinton Hill located in New York's Brooklyn district, has notched a 105% increase in home sales in 2025 compared to 2024. The median sales price is nearly $1.4 million and prices have grown nearly 4% in a year.

Overseas buyers are also moving in and offering up all cash.

“Whenever I have a listing in Prospect Heights or Clinton Hill, I expect at least one call from a serious buyer overseas,” Rubenstein said. “Given the prices, and the wealth required to buy into these neighborhoods, clients are less concerned about high mortgage rates.”

Below is a table on the three hottest ZIP codes in each of the 100 most populous U.S. metropolitan areas.