As 2025 became known as a year that was increasingly less affordable for Americans, many homebuyers flocked to cities in the Midwest where their dollar stretched further.
This year, Rockford, Illinois, became the No. 1 most popular market in the country, rising in the ranks from No. 2 last year, according to an analysis released on Tuesday by Zillow.
Midwest cities swept Zillow’s top 10 most popular market rankings this year, revealing that buyers have a clear preference for a slower pace of living in mid-sized cities that won’t break the bank. Most communities that showed up in Zillow’s top 10 are situated near major job hubs and commuter corridors, the company noted.
Top 10 most popular markets of 2025, according to Zillow:
- Rockford, Illinois
- Berkeley, California
- Albany, New York
- Dearborn, Michigan
- Toledo, Ohio
- Carmel, Indiana
- South Bend, Indiana
- Abilene, Texas
- Springfield, Illinois
- Allentown, Pennsylvania
“Over the past few years, stretched affordability has defined the housing market, and this year’s list shows just how strongly it’s shaping where Americans choose to shop,” Zillow Senior Economist Orphe Divounguy said in the company’s report.
“These cities offer the mix buyers are looking for: attainable home prices, expanding job hubs, and lively neighborhoods with parks, shops and community spaces. With high costs and limited inventory persisting in major coastal metros, these markets stand out as compelling alternatives — places where affordability brought shoppers in, and lifestyle convinced them to stay.”
Zillow’s 10 most popular markets of 2025 | Credit: Zillow
Markets were ranked based on Zillow’s page-view traffic, home value growth and days on market. The portal also analyzed top markets across several categories, including large city, coastal city and college town. Homebuyers drawn to these markets included a high portion of out-of-staters who were not just looky-loos, but actually translated into transactions.
Rockford, Illinois, rose to the top of Zillow’s ranking as more than three out of five page views for the city originated outside of the area, and homes typically went under contract within five days. The city is roughly 90 minutes northwest of Chicago, for an easy to commute to the major metro that avoids its high prices.
Other surprise hits this year included Toledo, Ohio, which Zillow ranked as the most popular large city. The affordable metro, which has a typical home value of $126,000, is located close to Lake Erie for recreational activities on the water and features walkable neighborhoods.
Lake Forest, Illinois, was ranked as the most popular small town and is another lake town alongside Lake Michigan. In contrast to Toledo and several other cities featured, however, Lake Forest is a bit pricier, with a median home sale price of $1.2 million, according to Redfin.
The third Illinois market to be included in the rankings was Normal, Illinois, which was featured as the most popular college town. The buzzy college town, which is home to Illinois State University, boasts a revitalized Uptown district with shops, restaurants, and museums and galleries. It is also rather affordable, with a median home sales price of $269,000, according to Redfin.
Take a look at the full rankings and all cities highlighted in Zillow’s report on the company’s news page.
