While many U.S. housing markets have cooled in 2025, one midsize city in upstate New York stands out for the opposite reason: Rochester, N.Y. is the most competitive housing market in the country, according to Zillow’s latest heat index.
With limited inventory, fast sales, and extreme bidding wars, Rochester has earned a reputation as one of the toughest places to buy a home this spring—even harder than cities like San Francisco or New York.
Rochester tops Zillow’s market heat index
Zillow’s housing market heat index considers metrics like days on market, price cuts, and buyer engagement. A score above 70 indicates a strong seller’s market. Rochester’s current score? 146.5—the highest in the U.S.
Homes in Rochester often go under contract within days of listing, and agents say dozens of offers on a single property are not uncommon.
“A home listed at $300,000 will likely sell for $350,000,” said Talha Shahid, a Rochester-based Realtor. “Any offer with an inspection contingency usually isn’t competitive.”
Buyers are advised to set their price filters well below their true budget to account for bidding wars.
Affordability drives demand
So why is Rochester so competitive? Surprisingly, affordability is a major factor.
The median home price in Rochester was $225,000 at the end of March, according to the Greater Rochester Association of Realtors—up 12.5% year over year but still far below the national average.
With a median household income around $67,000, many local buyers can still afford to enter the market. Major employers like Paychex, Wegmans, and local hospitals provide relatively stable, well-paying jobs.
“It’s still a super affordable place to live,” said Jonathan Long, a local mortgage consultant. “But there’s just not enough inventory.”
Inventory shortage makes it worse
At the end of March 2025, there were only 913 homes for sale in the entire Rochester metro area—a drop of 8.1% from the year before. On average, homes spend just eight days on the market.
This deep inventory shortage has turned Rochester into one of the most cutthroat housing environments in the country, especially for first-time buyers.
Mortgage rates hold steady—but buyers still feel the pressure
Nationally, mortgage rates have held steady at 6.76%, according to Freddie Mac. While this stability has helped some buyers, the higher cost of borrowing compared to pre-2022 levels continues to weigh on affordability.
Meanwhile, Americans’ overall housing sentiment remains mixed. The Fannie Mae Home Purchase Sentiment Index rose slightly in April, but most consumers still expect mortgage rates to remain high or increase.
What happens next?
While many markets are slowing down, Rochester stands out as an anomaly: a relatively affordable city with high demand and critically low supply.
Unless inventory improves, the city could remain one of the hardest places to buy a home in America—cementing its reputation as the “worst housing market” for buyers in 2025.
For ongoing updates and data-driven insights, visit Zillow, Freddie Mac, or your local housing authority.
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