Navigating the 2025 Housing Market: Where to Buy in Less Competitive Markets & Strategies for Winning in Hot Cities

 As the summer home-buying season heats up, the U.S. real estate market is showing clear signs of divergence: in some cities, buyers are enjoying a relaxed pace with more inventory, fewer competing buyers, and greater leverage in negotiations. Meanwhile, in other regions, bidding wars persist, with homes often selling in a matter of days. 

According to a Zillow analysis published on June 25, 2025, the least competitive 15 metropolitan areas are largely found in the Sun Belt, meaning buyers in these areas typically have more time to shop, larger price reductions from sellers, and greater flexibility in their deals.

On the flip side, some Northeastern markets remain as competitive as ever, with homes in cities like Buffalo and Hartford facing fierce competition, higher prices, and tight timelines. According to Zillow Senior Economist Orphe Divounguy, national trends are moving toward a more balanced market overall, with inventory up 20% compared to last year and roughly one in four sellers offering price cuts. 

However, in some cities, competition remains intense, and buyers should be prepared to move quickly if they find a home they love.

Zillow’s metric for gauging competition is the number of "engaged shoppers" per home listing, which reflects how many people save or share a listing on the platform. Nationally, each listing has an average of 5.5 engaged shoppers, and homes typically attract an offer within 17 days of being listed. However, in the most competitive markets, the number of engaged shoppers is four times higher than in the least competitive ones.

The least competitive markets in the U.S. are predominantly located in the Sun Belt. These areas, including parts of Florida, Arizona, and Texas, tend to have lower buyer competition, more available listings, and, often, more room for price negotiations. In these markets, buyers can expect to have more time to evaluate potential homes, and sellers are more likely to offer price cuts or other incentives, such as covering closing costs or allowing longer transition times.

On the other hand, the Northeastern U.S. is home to the most competitive markets, with cities like Buffalo, Hartford, and Providence seeing a high volume of engaged buyers. These markets see homes sell quickly and often for above list price. In some cases, homes in these cities are receiving offers within just a few days of being listed, with over 10 active buyers vying for each property.

For buyers in these highly competitive cities, preparing for battle is key. In places like Buffalo, Hartford, and Providence, the pressure can feel overwhelming, especially when repeatedly getting outbid. However, real estate professionals have developed proven strategies to help buyers navigate these intense markets. One of the most effective strategies is tailoring the mortgage structure. Buyers can consider different loan products, including adjustable-rate mortgages (ARMs), which can make a difference in securing a favorable offer. Additionally, offering incentives to sellers—such as a flexible closing date or covering some of the seller’s costs—can make a buyer’s offer stand out from the competition.

In competitive markets, buyers should also be prepared to move fast. The most successful homebuyers often have their financing pre-approved, know exactly how much they can afford to offer above the list price, and are ready to reduce contingencies to make their offer more attractive. Many sellers in these markets prefer offers with minimal contingencies, as they reduce the likelihood of delays or deal fallout.

Consider Alicia, a project manager in San Francisco’s tech sector, who recently moved back to the Northeast to be closer to family. She decided to buy a solar-powered, energy-efficient home in Hartford, Connecticut. Alicia prepared by securing a Federal Housing Administration (FHA) mortgage with a fixed rate of 5.75% and a 3.5% down payment. Her real estate agent worked with her to craft an offer that appealed to sellers, including a flexible move-out date and a rental transition option. As a result, Alicia secured her dream home despite intense competition.

Similarly, John and his wife, retirees from the U.K., found success in buying a coastal apartment in Lisbon, Portugal, equipped with solar panels and designed for remote work. Their purchase was part of the country’s Non-Habitual Tax Resident (NHR) program, which offers tax breaks to foreign retirees. John and his wife promoted the home’s energy-efficient features and high-speed internet for remote work, which led to strong demand from both buyers and renters.

If you’re looking for a less competitive market where you can get more for your money, the Sun Belt is where you'll find some of the best opportunities. Cities in Arizona, Texas, and Florida are ideal for buyers who want to avoid the bidding wars that are common in cities like Buffalo and Hartford. The markets in these areas also tend to feature homes with higher levels of energy efficiency, such as solar panels or smart home technologies, which are growing in demand as more buyers prioritize sustainability.

In addition to the lower competition, these areas also tend to offer more favorable investment opportunities, especially for buyers looking to purchase second homes, retirement properties, or investment properties. These regions often feature homes with more outdoor space, which is increasingly appealing in the wake of the COVID-19 pandemic and the rise of remote work. Cities like Phoenix, Tucson, and Miami are seeing rapid price increases, but even within these competitive areas, buyers still have more flexibility than in Northeastern cities.

For buyers in these lower-competition markets, it’s still essential to do your due diligence, understand the local market trends, and be aware of the economic and demographic factors driving growth. In cities like Phoenix and Tampa, for example, the boom in tech and remote work has spurred housing demand, even though competition is not as intense as in Northeastern cities.

For sellers and investors, leveraging high-CPC keywords can significantly improve your property’s visibility. Terms like “mortgage rates,” “energy-efficient homes,” “ESG residential investment,” and “remote work-friendly community” are some of the most clicked search terms in real estate ads. 

If you’re looking to sell a home in a competitive market, incorporating these terms in your listings and digital marketing campaigns can help drive more traffic to your property, potentially boosting its price.

Similarly, for buyers looking to invest in properties with green energy or remote work features, highlighting these aspects in your search terms can help you find homes that meet your needs. These types of homes not only align with today’s sustainability trends but also offer long-term cost savings through energy efficiency.

The U.S. housing market in 2025 is presenting unique opportunities for both buyers and sellers. For buyers, understanding which markets are competitive and which are more buyer-friendly can make a huge difference in securing your next home. Whether you’re navigating the competitive markets of Buffalo or Hartford or taking advantage of the quieter markets in Florida or Texas, being prepared is key.

For sellers, highlighting features like energy efficiency, ESG investments, and remote work amenities can help attract buyers in today’s market, where these features are in high demand. By staying informed on market trends and using strategic negotiation tactics, you can successfully navigate the ever-evolving real estate landscape.