In a Zillow ranking released on Tuesday, Providence and its metro area ranked as the third hottest market in the country, rising two places from where Zillow put it last year. Zillow ranked the 50 largest metro areas in the country. The only hotter markets, where it's even harder to buy a house, are Buffalo, New York and Indianapolis, Indiana.

Potential home shoppers in the Northeast and Midwest may be in for disappointment: Despite signs of cooling in the last year’s intensively competitive housing market, a new report from Zillow says some areas will stay competitive this year.

With steep competition to find a home in the new year, these cities offer affordable options for buyers in the housing market.