This year's hottest housing markets are spreading westward, marking a continued shift in America's centers of power and jobs.

Why it matters: Last year, the Rust Belt dominated Zillow's annual market ranking.

The big picture: Zillow's annual ranking forecasts the most competitive housing markets for buyers. Markets at the top of the list are largely "starved for housing inventory," the real estate platform shares with Axios.

• These regions tend to be relatively affordable with strong job and wage growth.

The intrigue: Buffalo is No. 1 again, and several metros dropped significantly or fell off the list entirely between the 2024 and 2025 rankings, Zillow senior economist Orphe Divounguy tells Axios.

Hartford, Connecticut, and Richmond, Virginia, are the rising stars to watch in 2025. Sellers there have the upper hand as homes fly off the market at record speed.

• Across most of the U.S., buyers and sellers are at somewhat of a stalemate, Divounguy says.

Meanwhile, San Francisco and Memphis are slipping. They fell 19 and 30 positions, respectively. In these markets, homes are already sitting on the market longer, and home values are expected to depreciate, according to Divounguy.

The bottom line: Affordability and inventory are the name of the game.

Homes listed over $1 million are taking up a larger share of the market, per Redfin.

The big picture: Wealthy people are the ones who can play in this market. Million-dollar homes grew 1 percentage point to 9.3% in 2024 from 2023, Redfin found.

The intrigue: The number of U.S. cities in which typical home values are above $1 million climbed to 550 in 2024 from 491.

The bottom line: U.S. median home prices have nearly doubled over the last decade.

Hobbies like knitting, sewing and quilting are helping people connect, and in some instances, bring in a little extra cash.

The big picture: Gardening and homesteading, needlepoint, crochet  — all of these activities typically enjoyed by boomers are taking off with younger generations now, according to TikTok.

• It's all part of the slower living aesthetic, also popular on TikTok.

By the numbers: On TikTok, posts with #needlepoint increased by 400% for the first 10 months of 2024 compared to the same period in 2023, the social platform shared with Axios.

Zoom in: Waste Knot Needlepoint owner Lori Mazza started noticing an influx of customers during the pandemic. Popularity hasn't waned since.

• The Arlington, Virginia-based needlepoint shop has always attracted crafters of all ages, but younger people are starting to take up a large share of their customer base, Mazza says.
• They're looking for ways to get off their phones, ease anxiety and relax, she says.

My thought bubble: I started needlepointing this fall for two reasons: I needed something to do with my hands (besides scroll social media) and I wanted to continue my great-grandma's tradition of homemade stockings.

• My nickname was "Gam Gam" in high school. Safe to say, I'm here for the cozy crafts resurgence.