Key Insight — Popularity Is Not About Prices Anymore
Zillow’s list of the most popular U.S. housing markets in 2025 is often read as a homebuyer trend.
For rental and REIT investors, that interpretation is incomplete.
The more useful signal is this:
These markets highlight where long-duration rental demand is likely to concentrate next — not where prices are peaking.
Markets like Rockford (IL), Albany (NY), Toledo (OH), Allentown (PA), and Dearborn (MI) are not topping the charts because they are fashionable.
They are popular because they sit at the intersection of affordability constraints, mobility, and delayed homeownership.
That intersection is where rental demand tends to harden.
Why These Specific Cities Matter for Rental Capital
Zillow’s 2025 ranking includes cities such as:
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Rockford, Illinois
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Albany, New York
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Toledo, Ohio
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Dearborn, Michigan
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Allentown, Pennsylvania
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Springfield, Illinois
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South Bend, Indiana
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Carmel, Indiana
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Abilene, Texas
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Berkeley, California
What unites these markets is not geography — it is function.
They serve as:
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Affordable alternatives to larger metros
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Employment-adjacent housing zones
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Transitional stops for households priced out of core cities
For renters, these cities are not temporary bargains.
They are longer-term holding areas.
Homeownership Delay = Rental Duration Extension
In markets like Albany or Allentown, home prices appear manageable on paper.
In practice, mortgage rates, credit constraints, and income ratios still block many first-time buyers.
The result is predictable:
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Renters stay longer
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Turnover slows
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Vacancy risk compresses
From a REIT perspective, this is not about rent spikes.
It is about rent continuity.
Decision Pressure Block
The critical REIT question in 2025 is no longer:
“Where will rents grow fastest?”
It is:
“Where will tenants stay put the longest?”
Length of stay increasingly defines income stability.
How Different REIT Types Read These Markets
🏘️ Residential & Multifamily REITs
Cities like Toledo, Rockford, and South Bend favor:
These are not markets for aggressive rent expansion.
They are markets for defensive yield preservation.
🏙️ Mixed-Use & Regional REITs
Markets such as Carmel (IN) and Dearborn (MI) often combine:
This supports ecosystem-style cash flows, where residential occupancy feeds adjacent commercial demand.
Why Berkeley Looks Different — But Still Fits
At first glance, Berkeley, California seems out of place on this list.
But its inclusion highlights a parallel dynamic:
For REIT investors, Berkeley is not a growth play —
it is a durability play under regulatory and supply limits.
Different profile. Same lesson.
Rental Risk Is Being Repriced by Geography
In prior cycles, rental risk was managed through pricing.
In this cycle, it is managed through location selection.
Markets like Springfield (IL) or Abilene (TX) may never deliver coastal-level rents,
but they increasingly deliver something just as valuable:
Predictable occupancy with limited downside volatility.
That is what long-horizon REIT capital prioritizes.
For a deeper breakdown of the hidden wealth shift, read the full analysis here →
https://bd-notes2155.com/blog/2025/12/06/us-middle-class-wealth-shift-2025/
Global Investment Takeaway
Zillow’s popular markets list is not a call to chase appreciation.
It is a map of where rental demand is becoming less elastic.
For REIT and income-focused investors, cities like Rockford, Albany, and Toledo are not secondary.
They are structural anchors in a market where affordability delays ownership and extends tenancy.
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