Rankings are based on Zillow’s Market Heat Index, which measures housing market competition. The index ranges from 0 to 100, with higher values favoring sellers and lower values favoring buyers.

The index looks at user engagement on Zillow’s active home listings, the share of listings with a price cut, and the share of for-sale listings going pending in 21 days.

Seller’s Markets: Housing demand exceeds supply, giving sellers more negotiating power, leading to higher prices

Buyer’s Markets: Housing supply exceeds demand, giving buyers more negotiating power, leading to lower prices