At W.L. Martin Homes, we’re always watching the housing market closely—especially because so many of our clients are developers who need to make smart investments in both timing and location. Zillow’s latest report for February 2025 offers a fresh look at where buyers and sellers hold the most leverage right now, using its proprietary Zillow Market Heat Index, and the findings could help guide your next build or purchase.
Let’s break it down and look at what this means for developers in 2025.
Zillow’s Market Heat Index: A Quick Refresher
Zillow’s Market Heat Index evaluates over 250 metro areas in the U.S. and ranks each market based on several data points: inventory levels, days on market, buyer demand, and home price changes.
A score of 70 or higher means it’s a strong sellers market. A score of 27 or lower is considered a strong buyers market. Nationally, the U.S. sits at 54, putting us in neutral territory—not exactly favoring buyers or sellers as a whole.
Top 10 Hottest Housing Markets (Seller’s Paradise)
According to Zillow, here are the metro areas where sellers currently have the upper hand:
- Rochester, NY – 169
- Buffalo, NY – 113
- San Jose, CA – 112
- San Francisco, CA – 105
- Syracuse, NY – 99
- Hartford, CT – 95
- Ann Arbor, MI – 90
- Boston, MA – 89
- Bridgeport, CT – 89
- Seattle, WA – 86
These markets have limited inventory, fast-moving listings, and sustained demand. For developers building in these areas, there’s a real opportunity to command higher prices—especially with modern, efficient home plans that appeal to today’s buyers.
Top 10 Coldest Housing Markets (Buyer’s Advantage)
Now, here’s where buyers are calling the shots:
- Jackson, TN – 9
- Gulfport, MS – 18
- Macon, GA – 23
- Daphne, AL – 25
- Brownsville, TX – 26
- Beaumont, TX – 26
- Longview, TX – 26
- Naples, FL – 28
- Punta Gorda, FL – 30
- Panama City, FL – 30
Many of these cold markets are in the Gulf Coast and parts of Texas and Florida, with a particular softness in Southwest Florida. Oversupply, slower buyer activity, and longer days on market all contribute to downward pressure on prices. For developers looking to secure land or existing inventory at a lower cost, these regions may offer attractive entry points for long-term plays.
What This Means for Developers Choosing House Plans
Whether you’re building in a hot or cold market, the right house plan can make all the difference in how quickly a property sells and what kind of return you can expect.
Here are a few key takeaways:
Hot Markets: Focus on quick-to-build, in-demand plans. Think modern designs with curb appeal, functional layouts, and energy-efficient features. In a seller’s market, buyers are competing—so small touches that elevate your build can drive up price points.
Cold Markets: Affordability and flexibility are key. Consider plans under 1,800 square feet with open-concept designs, optional garages or bonus rooms, and strong resale appeal. Buyers in these markets are more selective, so efficiency matters.
At W.L. Martin Homes, we offer house plans ranging from 400 to 4,000 square feet, ideal for developers operating in diverse market conditions. From charming cottages to compact modern homes to multi-family investment builds, we’re here to help you match the right plan to your market.
Timing and Location Still Rule the Game
Zillow’s data is clear: the market is shifting, but opportunity still exists—especially for developers who are tuned in to local conditions. Whether you’re eyeing Rochester for your next build or looking to make a smart play in Southwest Florida, we’ve got the house plans to help make your project a success.
Ready to explore your next build?
Browse our best-selling house plans here or contact us for help choosing the right design for your market.
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