Irondequoit, NY, a suburb of Rochester, has been identified as the most competitive housing market in the U.
S. According to a new report from Redfin, a real estate brokerage part of Rocket Companies, homes in this lakeside town typically sell in just 8.5 days and often for significantly over their asking price.
The report lists Sunnyvale, CA; Santa Clara, CA; Tonawanda Town, NY (a Buffalo suburb); and Mountain View, CA, as the next most competitive markets. Four of the top 10 cities are in California, three in Western New York, and the remainder across the South and East Coast. Each of these cities maintains less than a month of housing supply, with over half of homes selling within two weeks. This contrasts with the national average, where a typical house sells in a month and a half.
The housing market has been characterized by a waiting game in recent years, with high prices deterring buyers and sellers hesitating to list properties. Data from November 2025 showed that prices reached a new monthly high, the typical home took seven days longer to go under contract than the previous year, and new listings hit a monthly low. This deviates from typical patterns where rising competition usually accompanies price increases. Currently, competition is at historic lows, yet prices continue to climb, creating pressure for both buyers and sellers.
Asad Khan, a senior economist at Redfin, noted, “Homebuyers are facing a very unaffordable market, leaving many in search for anything they can swing. 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.”
Cities across Western and Upstate New York, including North Tonawanda, NY, Elizabethtown, PA, and Cheektowaga, NY, have experienced rapid home sales for over two years. These areas, located in the Rust Belt, have historically offered affordability. Renewed investment and economic growth have fueled a resurgence in the region, particularly after mortgage rates increased in 2022, prompting buyers to seek more accessible price points.
The Bay Area has also seen a reversal of its pandemic-era decline. During peak remote work and high mortgage rates, the Bay Area was a leading region for Redfin.com users searching to relocate. However, as remote work trends shifted and migration patterns normalized, demand returned to coastal areas. The Bay Area experienced a resurgence late in 2023, transitioning to a seller’s market in early 2025. This increase in competition has likely been spurred by the AI boom, which has contributed to income growth and significant signing bonuses, leading to improved affordability despite high prices.
Increased competition in historically affordable cities has benefited local economies but has also driven up demand and depleted supply, creating strong buyer’s markets. Advocacy groups have raised concerns that this influx and investment could price out local residents. For instance, cities like Buffalo and Rochester in Upstate New York have seen a surge in costs, presenting new financial challenges for long-term residents.
Conversely, many Sun Belt cities, popular during the pandemic for their sunshine and affordability (such as Austin, TX, Nashville, TN, and Miami, FL), have largely cooled. The initial surge in demand led to sharp price increases, and coupled with growing climate risks and an escalating insurance crisis, has deterred many buyers. Consequently, these regions now feature some of the nation’s slowest housing markets. Las Vegas, NV, for example, has recorded over a year of more than 20% inventory increases, indicating a slow market where sellers face challenges offloading properties.
Housing supply plays a significant role in market competitiveness. Regions with higher rates of new home construction typically have more inventory to meet demand. Florida and Texas have built tens of thousands of homes in the last five years, providing buyers with more options. In contrast, states like New York and California have lagged in new construction, forcing buyers to compete for a smaller, often older housing stock. For example, Buffalo, NY, built only 74 new single-family homes in November, while Austin, TX, constructed 3,465.
Redfin forecasts that Great Lakes cities, including Rochester and Buffalo, will be the hottest housing markets in 2026, while coastal Florida and Texas will be the slowest. Nationwide, competition is projected to decrease marginally in 2026 but is expected to improve slowly over time as mortgage rates stabilize in the low 6% range during peak homebuying season. While lower mortgage rates and higher wages may ease price pressure and attract some buyers, many will likely remain priced out of the market.
Khan concluded, “Competition and affordability are closely connected. 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.”
