How Hot Is The Milwaukee Housing Market In 2025? 50 Largest Cities

MILWAUKEE — How hot is the real estate market in the Milwaukee metro area? Pretty cold, actually.

In a new analysis, the online real estate marketplace Zillow ranked the 50 largest U.S. metro areas based on the company’s home value growth projections, how quickly homes sell, job growth, new construction permits, and expected growth in owner-occupied housing.

Buffalo, New York, is projected to be the hottest housing market this year, the first time it has held the title in back-to-back years, Zillow said.

Milwaukee ranked 42nd on the 2025 Hottest Markets list, moving up two positions from its 2024 ranking.

Milwaukee's Zillow Home Value Index for 2024 was $343,920, showing year-over-year growth of 5.3 percent.

The forecasted home value growth for 2025 is 2.4 percent. However, Milwaukee experienced a decline of 1.6 jobs per new home permitted and a 27.1 percent drop in housing inventory compared to 2018–2019 averages, reflecting a tight housing market.

Behind Buffalo, the hottest markets are Indianapolis; Providence, Rhode Island; Hartford, Connecticut; Philadelphia; St. Louis; Charlotte, North Carolina; Kansas City, Missouri; Richmond, Virginia; and Salt Lake City, respectively.

Zillow said its 2024 forecast that Buffalo would have the hottest real estate market in 2024 was proven out in its market heat index. The city has the most new jobs per new homes permitted, Zillow said, noting that new jobs often mean new residents, which raises competition and drives up prices unless builders can match the additional demand.

Affordability is a top consideration for buyers. Zillow said lower-than-average home prices and rent costs in Buffalo, Indianapolis, St. Louis and Kansas City, Missouri, pushed those cities to the top 10.

Buyers consider “relative affordability,” too. Providence, Rhode Island; Hartford, Connecticut; and Philadelphia are close, more affordable alternatives to expensive Northeast cities such as New York or Boston, Zillow said.

Among the fastest-growing markets is Virginia Beach, which leapfrogged over 23 other markets to the No. 13 spot in this year’s forecast. Memphis, Tennessee, fell the farthest, dropping 30 places as new housing permits eclipsed low job growth.

The western half of the country was shut out of the top 10 in 2024, but this year, Salt Lake City came in at No. 10. San Diego was the only other Western metro in the top 20.

Cities at the bottom of the ranking are New Orleans; San Francisco; San Jose, California; Portland, Oregon; Austin, Texas; Minneapolis; Denver; Memphis, Tennessee; Milwaukee; and New York City, respectively.