Greater Philadelphia has climbed six spots from last year to rank as the nation’s fifth hottest housing market for 2025, according to Zillow, writes Ryan Mulligan for the Philadelphia Business Journal.
Local real estate experts believe that the current year could bring back some semblance of normality to the Philadelphia-area real estate market following a prolonged period of mortgage rate fluctuations and rising home prices. Despite this, Zillow believes that the market may turn out to be hotter than most nationwide.
Zillow determined the ranking using metrics including projected home value appreciation, average listing days per home last year,the new jobs to new residential building permits ratio, and the forecasted change in owner-occupied households from 2024 to 2025.
According to Zillow data, Philadelphia ranks second only to Buffalo in jobs per new homes permitted, with 1.5 new jobs for every home approved for construction. This measure reflects expected demand based on U.S. Bureau of Labor Statistics data.
“Philadelphia’s strong job market continues to support demand for homes in the area,” said Zillow Senior Economist Orphe Divounguy.
The report also highlighted that “relative affordability is a powerful force” and a shared characteristic of the hottest housing markets this year and last.
Read more about Philadelphia’s housing market in the Philadelphia Business Journal.
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