Summary
A new report by Zillow found that Rockford, Illinois had the most popular housing market in 2025 due to its affordability. Many top housing markets were in the Midwest and had lower home prices, often under $350,000. Despite this, the U.S. housing market continues to face challenges with affordability and a shortage of homes.
Key Facts
- Rockford, Illinois was the most popular U.S. housing market in 2025 according to Zillow.
- The Midwest dominated the list due to its affordability.
- Home prices have increased nearly 30% from 2019 to 2024.
- High borrowing costs and taxes are barriers for potential home buyers.
- The U.S. homeownership level dropped to 65% in 2025, the lowest since 2019.
- Zillow's list included cities with at least 100,000 people, factoring in housing demand metrics.
- Toledo, Ohio, with a typical home value of $126,000, led among large cities for affordability.
- Most home buyers in Rockford came from outside the area, showing its broad appeal.
