Zillow’s new ratings reveal whether it’s a buyer’s or seller’s housing market in over 250 metros

Need extra housing market tales from Lance Lambert’s ResiClub in your inbox? Subscribe to the ResiClub publication.

Zillow economists use an financial mannequin often known as the Zillow Market Warmth Index to gauge the competitiveness of housing markets throughout the nation.

This mannequin appears at key indicators—together with house value modifications, stock ranges, and days on market—to generate a rating exhibiting whether or not a market favors sellers or consumers.

Increased scores level to hotter, seller-friendly metro housing markets. Decrease scores sign cooler markets the place consumers maintain extra negotiating energy.

In response to Zillow:

• Rating of 70 or above = sturdy sellers market
• Rating from 55 to 69 = sellers market
• Rating from 44 to 55 = impartial market
• Rating from 28 to 44 = consumers market
• Rating of 27 or beneath = sturdy consumers market

Nationally, Zillow charges the U.S. housing market at 52 in its July 2025 studying, printed this month.

That mentioned, Zillow’s studying varies considerably throughout the nation.

!perform(){“use strict”;window.addEventListener(“message”,perform(a){if(void 0!==a.information[“datawrapper-height”]){var e=doc.querySelectorAll(“iframe”);for(var t in a.information[“datawrapper-height”])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.supply){var d=a.information[“datawrapper-height”][t]+”px”;r.fashion.peak=d}}})}();

Among the many 250 largest metro space housing markets, these 10 are the HOTTEST markets, the place sellers have probably the most energy:

1. Rochester, NY → 145
2. Syracuse, NY → 91
3. Hartford, CT → 87
4. Buffalo, NY → 87
5. Charleston, WV → 86
6. Binghamton, NY → 80
7. Springfield, MA → 77
8. Albany, NY → 75
9. Poughkeepsie, NY → 75
10. Norwich, CT → 75
11. Springfield, IL → 75
12. Kingston, NY → 75
13. Lansing, MI → 73
14. Ann Arbor, MI → 73
15. Bridgeport, CT → 72

Among the many 250 largest metro space housing markets, these 10 are the COLDEST markets, the place consumers have probably the most energy:

1. Jackson, TN → 13
2. Terre Haute, IN → 21
3. Macon, GA → 24
4. Lafayette, IN → 25
5. Asheville, NC → 26
6. Beaumont, TX → 26
7. Gulfport, MS → 27
8. Brownsville, TX → 28
9. Naples, FL → 28
10. Daphne, AL → 28
11. Lubbock, TX → 29
12. Panama Metropolis, FL → 30
13. Punta Gorda, FL → 31
14. Longview, TX → 32
15. Waco, TX → 32

Does ResiClub agree with Zillow’s evaluation?

Directionally, I imagine Zillow has appropriately recognized many regional housing markets the place consumers have gained probably the most energy—significantly across the Gulf—in addition to markets the place sellers have maintained (comparatively talking) considerably of a grip, together with giant parts of the Northeast and Midwest.

Primarily based on my private housing evaluation, I think about Southwest Florida the weakest/softest chunk of the U.S. housing market. Not too far behind are pockets of Texas, Colorado, and Arizona markets the place there’s constructed up unsold spec stock.

In my opinion, many West Coast markets are softer proper now than Zillow’s evaluation suggests—particularly the areas which have not too long ago seen huge jumps in lively stock on the market.

What did this Zillow evaluation appear like again in spring 2021 through the Pandemic Housing Increase? Beneath is Zillow’s July 2021 studying—printed in August 2021.