COLUMBUS, Ohio (WCMH) – Three Ohio cities that ranked among Zillow’s most competitive housing markets in 2024 have significantly dropped this year’s rankings.
To predict the most competitive housing markets, Zillow reviewed multiple factors — including how quickly homes have been selling, and its own forecast for home value growth — in the 50 most populated cities nationwide.
The state’s three most populous cities – Cincinnati, Columbus and Cleveland – ranked among the most competitive housing markets for 2024, sitting at Nos. 2, 3 and 8, respectively. On Zillow’s list for 2025, they all dropped, now ranking at Nos. 11, 12, and 14.
“Through the first half of [2024], the Columbus metro was still permitting more single-family construction than before the pandemic,” said Zillow senior economist Orphe Divounguy. “However, the labor market has cooled. Lower potential demand for housing relative to supply should cause competition among buyers to cool somewhat in the coming months.”
Divounguy said it’s important to note that the state’s three largest metros still remain relatively hot when compared to other regions, with three all ranking in the top 15 hottest markets for 2025.
“While housing markets in these major Ohio metros are more balanced than they were a year ago, the typical home still goes from newly listed to pending at a much faster pace than before the pandemic,” Divounguy said.
Overall, Zillow’s analysis determined cities primarily on the East Coast could have the hottest housing markets this year.
For the second year in a row, Buffalo, New York, held the top spot on Zillow’s list. The company pointed to the city’s relative affordability and job market as the driving factors behind Buffalo’s competitive real estate status.
“Construction that keeps pace with an area’s growth remains a crucial piece of keeping homes available and accessible,” said Skylar Olsen, Zillow’s chief economist. “In chilly Buffalo, competition among buyers will remain hot, with employment growing far faster than builders are adding homes.”
The second-hottest market, Zillow predicts, will be Indianapolis. The metro, like other Midwestern cities that landed toward the top of the list, tend to have “lower-than-average home prices and rent costs,” which have fueled the competition for buyers.
Virginia Beach, Virginia, jumped more than 20 spots over last year’s rankings. According to Zillow, it earned the No. 13 spot on its list thanks in part to “job growth that has far outpaced new home permitting.” Alternatively, Memphis, Tennessee, dropped 30 spots because the number of new homes being built is outgrowing job growth.
The Nexstar Media Wire contributed to this article.
