Philadelphia is the only big city on Zillow’s top 20 list of most popular housing markets

Zillow’s list of the most popular real estate markets of 2025 is dominated by midsize cities in the Midwest. But one large city ranked in the top 20: Philadelphia.

The main driver of popularity is housing affordability, which helped push Philadelphia up the list.

The city also remains popular because of its central location on the East Coast between major job hubs such as New York and Washington. And Philadelphia is a place people want to be for its culture, restaurants, and music and arts scenes, said Orphe Divounguy, senior economist at Zillow.

But “that affordability can’t be overstated,” he said.

“Relatively more affordable markets are really seeing more rapid home value appreciation and more traffic on Zillow,” he said. The company considered these factors, as well as the number of days properties took to sell this year, to rank the popularity of cities.

In many of the top 10 most popular markets, the median home value in November was less than $350,000. These markets are near growing job markets or sit along key commuter routes and are small enough to offer a sense of community, according to Zillow.

Homes in the most popular markets tend to go under contract in days instead of weeks. And they’re growing in value.

Most of the cities on the top 20 most popular list — with the exception of No. 19 Philadelphia — range in population from about 100,000 to 300,000 people.

In Philadelphia, the median home value in November — about $230,000 — was up almost 3% from last year, and homes for sale took a median of 20 days to go under contract this year. And more searches for Philadelphia listings on Zillow are coming from outside the region, which shows broad interest.

Allentown was the only city in Pennsylvania to make Zillow’s top-10 list of popular markets this year.

A lot of the smaller cities on Zillow’s most popular list are near big, more expensive cities.

For example, the most popular market this year — and the second most popular last year — is Rockford, Ill., which is 90 miles outside Chicago. Residents can access a large job center without paying big-city home prices.

Rockford is popular with out-of-town home shoppers, and homes went under contract within just five days this year. It was one of the fastest-moving markets on Zillow’s list.

Divounguy expects buyers will continue to be attracted to more affordable markets that have homes available to buy and will move away from expensive markets where fewer homes are built.

“Philadelphia, because it’s so attractive, needs to continue to build housing,” he said. “It needs to keep up with the interest people have to live in the area.”

» READ MORE: Pa. isn’t building enough housing, and that’s hiking prices, Pew says

Albany, N.Y., is the third most popular city on Zillow’s 2025 list and the most popular in the Northeast.

The most popular small town on the list — defined as a place with no more than 20,000 people — is Lake Forest, Ill., which is 30 minutes outside Chicago. Zillow said the town’s proximity to a big city, historic charm, and position along Lake Michigan make this market attractive for homebuyers.

Among cities with more than 250,000 residents, Toledo, Ohio, is most popular. The median home value is an affordable $126,000, and it’s on the tip of Lake Erie.

For the second year in a row, Portland, Maine, is Zillow’s most popular vacation town. The company said Portland’s historic architecture, food, and arts scene attract homebuyers.

Bullhead City, Ariz., is the most popular retirement town and draws residents with warm temperatures and outdoor recreation along the Colorado River, Zillow said.

And Normal, Ill., the site of Illinois State University, is the most popular college town. Zillow cited its revitalized shopping and dining district. State College, home to Penn State, is a runner-up.