A new Zillow report puts the Bay Area in unfamiliar ground when it comes to the housing market.
The region, known for its sky-high housing prices and demand, ranks at the bottom of a list predicting the hottest and most competitive markets in 2025.
Out of 50 major metro areas ranked, San Francisco and San Jose came in at 48 and 49, respectively. San Francisco dropped 19 places and San Jose dropped 6 places compared to their 2024 rankings.
For this year, Buffalo topped the list at No. 1 and was followed by Indianapolis.
Zillow’s report takes into account its forecast for local home value growth and how quickly homes are selling. It also considers job growth per new home permitted.
Orphe Divounguy, a senior economist at Zillow, expressed that the domino effect of stagnated employment growth has impacted the housing markets like San Francisco.
“The information and tech sector is often disproportionately affected …