Rockford, the third largest city in Illinois, was the most popular housing market in the country in 2025, according to a new report by Zillow.
Homebuyers chose the so-called Forest City, known for its luscious green spaces and strong manufacturing industry, mainly for its affordability—an issue that continues keeping many Americans to the sidelines of the U.S. housing market.
Why It Matters
The U.S. housing market is still in the throes of an affordability crisis that has its roots in a widespread shortage of homes across the country.
Higher home prices—which have surged by nearly 30 percent between 2019 and 2024, historically elevated borrowing costs, higher property taxes and homeowners insurance premiums, have kept many aspiring homebuyers from stepping on the property ladder this year.
In the second quarter of the year, according to Census Bureau data, the U.S. homeownership level fell to 65 percent, the lowest since 2019.
What To Know
A majority of this year’s top market, according to Zillow, are in the Midwest—a region that continues to attract shoppers for its relative affordability. In fact, what a majority of the market in the year’s top ten had in common was relatively low prices: most, according to Zillow, offer prices under $350,000.
They also offer growing job access, Zillow said, and demanded less financial strain of residents.
These were the top 10 most popular housing markets across the country this year, as per Zillow:
- Rockford, Illinois
- Berkeley, California
- Albany, New York
- Dearborn, Michigan
- Toledo, Ohio
- Carmel, Indiana
- South Bend, Indiana
- Abilene, Texas
- Springfield, Illinois
- Allentown, Pennsylvania
To compile this list, Zillow analyzed housing metrics in cities with a population of at least 100,000 people across the U.S. reflecting consumer demand, including page-view traffic, home value growth and how quickly homes sold.
In Rockford, which climbed to the top after ranking second last year, homes sold in just five days. More than three out of five page views came from shoppers outside the area, showing the appeal of the city beyond its borders.
Berkeley and Albany were also the most popular cities in their respective geographic regions, the Northeast and the West. The most popular market in the Southeast and Mountain region, High Point, North Carolina, and Nampa, Idaho, did not feature on the overall top 10.
While most of the markets in the list are midsize cities, Toledo led among large ones. The typical home value in the city is $126,000, making Toledo accessible for buyers seeking affordability. Its proximity to Lake Erie, walkable neighborhoods and a thriving arts scene further support its appeal.
Other popular large cities not featured in the top 10, but still very popular among American home shoppers, were Lincoln, Nebraska, and Anchorage, Alaska.
What Happens Next
A majority of experts believe that next year will bring some improvement in affordability in the U.S. housing market, as income is expected to grow faster than home prices for a prolonged period of time.
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