Home Economy Economic Activity Zillow: Providence third-hottest housing market for 2025

Zillow: Providence third-hottest housing market for 2025

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PBN Staff

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01/07/2025

Pending Home Sales — PROVIDENCE is the third-hottest major housing market for 2025, according to a new analysis by Zillow. / ASSOCIATED PRESS FILE PHOTO / ROGELIO V. SOLIS

PROVIDENCE – Rhode Island’s capital city is the third-hottest major housing market in the nation for 2025, according to a new analysis by Zillow. Zillow’s list is based on an analysis of forecasted home-value growth, recent housing market velocity and projected changes in the labor market, home construction activity and number of homeowner households. Data

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PROVIDENCE – Rhode Island’s capital city is the third-hottest major housing market in the nation for 2025, according to a new analysis by Zillow. Zillow’s list is based on an analysis of forecasted home-value growth, recent housing market velocity and projected changes in the labor market, home construction activity and number of homeowner households. Data used includes forecasted annual home-value appreciation in Nov. 2025, forecasted acceleration in home-value appreciation, Nov. 2024 through Nov. 2025, listing days per home, Jan. 2024 through Nov. 2024, two-year change in total nonfarm employment per two-year residential building permit total and projected change in owner-occupied households, 2024 through 2025. Home prices in Providence are expected to grow 3.4% in 2025, according to Zillow. Top factors include affordability and being an alternative to expensive nearby metro areas such as Boston and New York, the study found. For the second-straight year, Buffalo, N.Y. was the hottest major market in the U.S. Providence was ranked No. 2 last year. "Construction that keeps pace with an area's growth remains a crucial piece of keeping homes available and accessible. In chilly Buffalo, competition among buyers will remain hot, with employment growing far faster than builders are adding homes," said Skylar Olsen, Zillow’s chief economist. "Shoppers nationwide should see more options for sale than in recent years, along with slow and steady price growth. That's the good news. But both buyers and sellers should expect unpredictable mortgage rates." Indianapolis was second on this year’s list. Hartford and Philadelphia, Pa., rounded out the top five below Providence. Hartford has the highest expected growth in home prices among the top five at 4.2% Nationwide, Zillow forecasts relatively slow and steady growth for both home values and sales in 2025, though affordability and unpredictable mortgage rates will present familiar headwinds. Inventory should continue to recover from a deep pandemic-era deficit. The full report can be found here.