Housing market shift: Zillow’s updated ratings show the power balance in 250-plus metros

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Zillow economists use an financial mannequin generally known as the Zillow Market Warmth Index to gauge the competitiveness of housing markets throughout the nation. 

This mannequin seems to be at key indicators—together with house worth adjustments, stock ranges, and days on market—to generate a rating exhibiting whether or not a market favors sellers or patrons. 

Larger scores level to hotter, seller-friendly metro housing markets. Decrease scores sign cooler markets the place patrons maintain extra negotiating energy.

In accordance with Zillow: 

• Rating of 70 or above = sturdy sellers market
• Rating from 55 to 69 = sellers market
• Rating from 45 to 54 = impartial market
• Rating from 28 to 44 = patrons market
• Rating of 27 or beneath = sturdy patrons market

Nationally, Zillow charges the U.S. housing market at 48 in its October 2025 studying, revealed final week.

That stated, Zillow’s studying varies considerably throughout the nation.

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Among the many 250 largest metro-area housing markets, these 20 are the HOTTEST markets—the place sellers have probably the most energy:

1. Rochester, NY → 120 
2. Syracuse, NY → 80 
3. Hartford, CT → 76 
4. Bridgeport, CT → 70 
5. Racine, WI → 67 
6. San Francisco, CA → 66 
7. New York, NY → 65 
8. Albany, NY → 65 
9. Lancaster, PA → 65 
10. Manchester, NH → 64
11. San Jose, CA → 63 
12. Poughkeepsie, NY → 63 
13. Anchorage, AK → 63 
14. Springfield, MA → 62 
15. Norwich, CT → 62 
16. Windfall, RI → 60 
17. Kingston, NY → 60 
18. Richmond, VA → 59 
19. Buffalo, NY → 59 
20. New Haven, CT → 59

Among the many 250 largest metro-area housing markets, these 20 are the COLDEST markets—the place patrons have probably the most energy:

1. Florence, SC → 8 
2. Jackson, TN → 10 
3. Gulfport, MS → 14 
4. Lafayette, IN → 18
5. Longview, TX → 19 
6. Charleston, WV → 20 
7. Macon, GA → 20 
8. Terre Haute, IN → 22 
9. Brownsville, TX → 25 
10. Evansville, IN → 25 
11. Asheville, NC  →26 
12. Fayetteville, AR → 27 
13. Daphne, AL → 28 
14. Beaumont, TX → 29 
15. Hickory, NC → 29 
16. Lubbock, TX → 30 
17. Naples, FL → 31 
18. Saginaw, MI → 32 
19. Bowling Inexperienced, KY → 32 
20. Lincoln, NE → 33

Does ResiClub agree with Zillow’s evaluation?

Directionally, I consider Zillow has accurately recognized some regional housing markets the place patrons have gained probably the most energy—notably across the Gulf—in addition to markets the place sellers have maintained (comparatively talking) considerably of a grip, together with parts of the Northeast and Midwest.

Based mostly on my private housing evaluation, I think about a lot of Florida (notably southwest Florida) and chunks of Texas (notably areas with loads of new single-family house development) the weakest/softest chunk of the U.S. housing market. Not too far behind are pockets of Colorado, Georgia, and Arizona markets the place there’s built-up unsold spec stock.

What did this Zillow evaluation appear to be again in spring 2021 throughout the pandemic housing increase? Beneath is Zillow’s October 2021 studying, revealed in November 2021:

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