Midwest markets surge to the top of Zillow's 2025 rankings

Q: How does Zillow (Z) define 'most popular' markets for 2025?

Zillow used consumer demand metrics including page-view traffic, home value growth, and speed of sales to rank markets.

Zillow (NYSE: Z) released its 2025 most-popular housing markets, led by Rockford, Illinois as the No. 1 city.

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Rhea-AI Summary

Zillow (NYSE: Z) released its 2025 most-popular housing markets, led by Rockford, Illinois as the No. 1 city. The Midwest dominates the top 10, with many markets showing typical prices under $350,000 and strong outside demand.

Key data points: Rockford homes went under contract in 5 days and saw more than 60% of page views from outside the area; Toledo is the top large city with a typical home value of $126,000. Zillow highlights growing buyer interest in midsize, affordable metros with commuter access to major job centers.

Argus Dec 16 session

+2.47% close to close Open Argus

Details

News Market Reaction – Z

On Dec 16, the day this news came out, Z closed 2.47% above the previous close.

Data tracked by StockTitan Argus for the Dec 16 session.

Market Context

This announcement spotlights strong shopper interest in affordable and midsize markets, with Rockfor...

Analysis

This announcement spotlights strong shopper interest in affordable and midsize markets, with Rockford leading Zillow’s 2025 rankings and many top cities offering prices under $350,000. It reinforces Zillow’s role as a demand gauge, complementing earlier research and outlook pieces. Investors may watch how this engagement story ties back to revenue drivers outlined in Q3 2025—such as Rentals and Mortgages growth—and whether continued traffic strength eventually appears in future financial reports and operating metrics.

Key Figures

Homes under $350K: $350,000 Rockford external views: More than three out of five page views Rockford contract speed: 5 days +5 more

Homes under $350K: $350,000; Most of top 10 Zillow markets priced below this level
Rockford external views: More than three out of five page views; Share of Rockford Zillow traffic from shoppers outside the area
Rockford contract speed: 5 days; Typical time for homes in Rockford to go under contract
Toledo typical home value: $126,000; Typical home value in Toledo, the top large city market
Midwest share of top markets: Majority of top 10; Midwestern cities’ representation in Zillow’s 2025 rankings
City size threshold: More than 250,000 people; Population cutoff used for large city category
Rockford commute: About 90 minutes; Driving time from Rockford to Chicago, a major job hub
Most popular segments: Top 10 markets; Ranked list of overall most popular Zillow markets in 2025

Historical Context

5 past events · Latest: Dec 11

5 events

Dec 11
Consumer research

24h Move

+0.3%

Study on mortgage rate shopping highlighting potential savings for homebuyers.
Dec 10
Marketing campaign

24h Move

+1.3%

Relaunch of seasonal Santa's House Showcase using Zillow's virtual staging AI.
Dec 04
Market outlook

24h Move

-0.8%

Forecast of modest 2026 housing rebound with improving affordability metrics.
Dec 02
Conference appearance

24h Move

+5.4%

CEO fireside chat at Barclays Global Technology Conference for investors.
Nov 24
Conference appearance

24h Move

+3.1%

CFO participation at UBS Global Technology and AI Conference 2025.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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12/16/2025 - 08:00 AM

In a region recognized for its affordability, several Midwestern cities — including the No. 1 market — stand out this year in Zillow's list of most popular markets

Rockford, Illinois, is America's most popular city for home shoppers on Zillow, moving up from No. 2 last year.
The Midwest dominates the top 10, as shoppers favor affordable markets over costly coastal metros.
Midsize cities have gained traction nationwide, offering shoppers community and access to expanding job hubs.

SEATTLE, Dec. 16, 2025 /PRNewswire/ -- Zillow® shoppers made a statement in 2025: Affordability matters, and midsize markets are having a major moment. Rockford, Illinois, is the most popular city in the country for home shoppers, climbing to No. 1 after ranking second last year. The Midwest accounts for a majority of this year's top markets, with notable showings from the Northeast and a single West Coast entry.

Most of the top 10 markets offer prices under $350,000, growing job access, and communities that provide more breathing room and less financial strain. Many of these cities also sit near major job centers or along key commuter corridors, giving residents big-city opportunities without big-city costs.

Zillow's top 10 most popular markets of 2025:

Rockford, Illinois
Berkeley, California
Albany, New York
Dearborn, Michigan
Toledo, Ohio
Carmel, Indiana
South Bend, Indiana
Abilene, Texas
Springfield, Illinois
Allentown, Pennsylvania

Zillow search trends show that the appeal of these markets extends well beyond their borders, drawing a high share of page views from shoppers outside the metros. But they aren't just getting clicks, they're getting action. Homes in many of the top markets go pending in days rather than weeks, pointing to competitive market conditions.

"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," said Zillow Senior Economist Orphe Divounguy. "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."

To determine the most popular markets in 2025, Zillow analyzed housing metrics in cities across the U.S. that reflect consumer demand, including page-view traffic, home value growth and how quickly homes sell. Zillow used the same analysis to also create top markets in a variety of categories.

Most popular on Zillow overall: Rockford, Illinois
Rockford claims this year's top overall ranking. Located about 90 minutes northwest of Chicago, Rockford offers access to a major job hub without big-city housing costs. More than three out of five page views came from shoppers outside the area, and homes typically went under contract in just five days, making Rockford one of the fastest-moving markets on the list.

Most popular large city: Toledo, Ohio
Toledo leads large cities again this year. With a typical home value of $126,000, the city remains accessible for buyers seeking affordability. Its proximity to Lake Erie, walkable neighborhoods and a thriving arts scene further support its appeal.

Lincoln, Nebraska, and Anchorage, Alaska, take the No. 2 and No. 3 spots for cities of more than 250,000 people.

Most popular coastal city: Kailua, Hawaii
Among U.S. coastal destinations, Kailua, Hawaii, takes the lead. Its world-renowned beaches and year-round sunshine draw interest from Zillow shoppers.

Rounding out the top three are South Portland, Maine, and Santa Cruz, California.

Most popular small town: Lake Forest, Illinois
Situated along Lake Michigan, Lake Forest, Illinois, ranks as Zillow's most popular small town of 2025. Its historic charm continues to draw strong interest from Zillow shoppers.

The small Ohio towns of Springboro and Oregon follow closely behind.

Most popular vacation town: Portland, Maine
For the second year in a row, Portland, Maine, claims the title of Zillow's most popular vacation town. Nestled on a peninsula extending into Casco Bay, Portland continues to captivate home shoppers with its food, arts scene and historic architecture.

El Dorado Hills, California, and Coeur d'Alene, Idaho, complete the top three.

Most popular college town: Normal, Illinois
Normal, Illinois, home to Illinois State University, ranks as Zillow's most popular college town of 2025. Its revitalized Uptown district — featuring shops, dining and cultural venues — along with ISU's longstanding presence, helps make Normal a standout among college-oriented markets.

Runners-up include State College, Pennsylvania, home to Penn State University; and Lawrence, Kansas, home to the University of Kansas.

Most popular retirement town: Bullhead City, Arizona
Bullhead City, Arizona, attracts retirees with its warm climate and access to outdoor recreation along the Colorado River. Proximity to Laughlin, Nevada, adds to its appeal, offering nearby entertainment, dining and amenities.

The Villages, Florida, ranks second, followed by Lake Havasu City, Arizona, in third.

Most popular cities by geographic region
Each region saw its own standout city rise to the top among Zillow shoppers this year:

Northeast: Albany, New York
West: Berkeley, California
Midwest: Rockford, Illinois
Southwest: Abilene, Texas
Southeast: High Point, North Carolina
Mountain region: Nampa, Idaho

About Zillow Group:

Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

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SOURCE Zillow

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why did Zillow (Z) rank Rockford, Illinois the No. 1 market in 2025?

Rockford topped the list due to heavy outside demand, fast sales pace (5 days to contract), and affordable prices compared with coastal metros.

Which Zillow (Z) 2025 top markets are in the Midwest and what price levels do they show?

The Midwest supplies a majority of the top 10, with many top markets showing typical prices under $350,000.

How does Zillow (Z) define 'most popular' markets for 2025?

Zillow used consumer demand metrics including page-view traffic, home value growth, and speed of sales to rank markets.

What is Zillow's most popular large city of 2025 and its typical home value?

Toledo, Ohio is Zillow's most popular large city in 2025 with a typical home value of $126,000.

Do Zillow (Z) rankings show interest from buyers outside the local areas?

Yes; Zillow reports many top markets drew a high share of page views from shoppers outside those metros, including >60% in Rockford.

Midwest markets surge to the top of Zillow's 2025 rankings

Rhea-AI Summary

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