A newly released Redfin analysis of U.S. housing markets ranks Irondequoit, New York — a lakeside suburb of Rochester — as the most competitive market in the country in 2025, highlighting shifting buyer demand and regional patterns amid high prices and limited supply.
According to Redfin’s report, Irondequoit’s housing market is exceptionally tight, with homes typically selling in about 8.5 days and frequently receiving offers above the asking price. This pace eclipses most other U.S. cities and underscores persistent demand in certain smaller metros and suburbs.
Competition Rankings and Geographic Trends
For their study, Redfin evaluated competitiveness using factors such as months of supply, the ratio of sale price to list price, and median days on market across more than 1,600 U.S. cities. The analysis found that four of the top 10 most competitive markets in 2025 are in California, with others concentrated in Western New York and select East Coast and Southern locations.
Beyond Irondequoit, other highly competitive markets include Sunnyvale, Santa Clara, and Mountain View in California — all of which reflect ongoing strength in tech-driven or coastal housing markets. Additionally, Rust Belt cities such as Tonawanda (a suburb of Buffalo) also ranked prominently, indicating sustained buyer interest in more affordable regions.
“Homebuyers are facing a very unaffordable market, leaving many in search for anything they can swing,” said Asad Khan, a senior economist at Redfin. “Many are choosing lower-cost cities in the Rust Belt and East Coast, where their dollars go farther. But others are still competing at the high end: Competition has recently jumped in the Bay Area as tech-savvy buyers with deep pockets vie for limited supply.”
A Shift in Buyer Preference
Redfin economists note that competition has intensified in areas where housing affordability remains relatively better than in high-cost metros. Western and Upstate New York cities have seen increased activity as buyers seek more reachable entry points amid stagnant wages and elevated mortgage rates. However, the surge in demand has also squeezed supply in these markets, exacerbating competitive conditions for hopeful buyers.
The Bay Area, long known for intense competition, also saw a resurgence in 2025 after pandemic-era declines in buyer interest. A combination of improving affordability relative to incomes and renewed demand from tech-sector workers helped reinvigorate competition in markets like Sunnyvale and Santa Clara.
Sun Belt and Broader National Context
In contrast to the Rust Belt and select coastal regions, many Sun Belt markets that were once red-hot — including Austin, Texas; Nashville, Tennessee; and Miami, Florida — have cooled. These areas now feature some of the slowest market conditions nationwide, characterized by rising inventory and extended time on market. Builders in high-growth Sun Belt regions have added substantial housing stock, which, combined with affordability pressures and climate-related cost factors, has dampened competition relative to recent years.
This divergence between markets reflects a broader national housing trend. Despite record-low buyer activity, housing prices have continued to climb in many areas, and overall competition has remained robust where supply is particularly constrained. Redfin’s data for November 2025 also show that nationwide trends include fewer listings and longer waits for homes to go under contract compared with earlier in the year.
Looking Ahead to 2026
Redfin’s report suggests that while competition may ease slightly in 2026 — aided by moderately lower mortgage rates and incremental increases in listings — the pattern of affordability-driven demand in traditionally overlooked regions is likely to persist. Cities in the Great Lakes region, including Rochester and Buffalo, are expected to remain among the strongest markets amid these dynamics.
“Competition and affordability are closely connected,” added Khan. “Generally, when one falls, the other rises. As the supply of homes for sale grows and buyers’ buying power improves, we’ll begin to approach more ‘normal’ sales numbers.”
