Midwest markets surge to the top of Zillow's 2025 rankings
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.
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News Market Reaction – Z
In the Dec 16 session, Z gained 2.47%, reflecting a moderate positive market reaction. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 11 | Consumer research | Positive | +0.3% | Study on mortgage rate shopping highlighting potential savings for homebuyers. |
| Dec 10 | Marketing campaign | Positive | +1.3% | Relaunch of seasonal Santa's House Showcase using Zillow's virtual staging AI. |
| Dec 04 | Market outlook | Positive | -0.8% | Forecast of modest 2026 housing rebound with improving affordability metrics. |
| Dec 02 | Conference appearance | Positive | +5.4% | CEO fireside chat at Barclays Global Technology Conference for investors. |
| Nov 24 | Conference appearance | Positive | +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.
Recent company news items, often around research and brand initiatives, have typically led to modest positive price reactions, with only one notable divergence on a macro housing forecast.
Over the past few weeks, Zillow has released several engagement and thought-leadership updates. On Dec 11, research on mortgage rate shopping showed potential savings for buyers and saw a small positive move. A seasonal "Santa's House" marketing feature on Dec 10 coincided with a larger gain. Earlier in December, a 2026 housing outlook on Dec 4 drew a mild negative reaction. Investor conference appearances in late November and early December (news_ids 942999 and 940337) were met with solid gains, suggesting conferences and consumer engagement campaigns have usually aligned with supportive price action.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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.
Most of the top 10 markets offer prices under
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
Most popular on Zillow overall:
Most popular large city:
Most popular coastal city:
Among
Rounding out the top three are
Most popular small town:
Situated along
The small
Most popular vacation town:
For the second year in a row,
Most popular college town:
Runners-up include
Most popular retirement town:
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
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