The 10 Hottest Housing Markets for 2026
Competition among buyers will be hottest in the Northeast and California, where there are more buyers than homes for sale.
Written by Susan Kelleher on January 6, 2026
Edited by Jessica Rapp
The housing market nationally has been moving in buyer’s favor for about a year, but some markets remain especially tough for buyers as the demand for homes in their preferred metros outstrips the number of homes for sale.
Those metros, which are mainly in the Northeast and California’s Bay Area, top the list of hottest markets for 2026, according to a Zillow analysis. Buyers and sellers in those markets will face different dynamics compared to buyer-friendly markets where homes are more plentiful and buyers have less competition, more selection and more time to shop.
“Competition among buyers will be stiff and sellers will have the upper hand in this year’s hottest markets,’’ says Zillow chief economist Mischa Fisher. “Shoppers will need to tap all the resources they can muster in these fast-moving markets, from their team of experts to tech aids to financial assistance.”
The stiff competition does come with a potential upside, says Fisher: The fast home price growth predicted for these hottest markets could mean successful buyers gain equity more quickly. (Home equity is the difference between what your home is worth and what you owe on a mortgage.)
Here’s a look at where we expect the stiffest competition for homes in 2026.
The top 10 hottest markets for 2026
To compile the list of hottest markets, Zillow economists analyzed the 50 largest U.S. metro areas for the following:
- home price growth, both past and predicted
- Zillow data showing the speed of home sales, the share of sellers who cut prices and the share that sold above the initial asking price
- The number of new jobs created compared to the number of building permits issued for new homes
Most of the hottest metros have seen a steep drop in the number of homes for sale compared to 2018-2019. That’s the year before the pandemic ushered in dramatic changes to home inventory and caused home values to spike as much as 46% in some markets. Metros with more homes for sale now than in 2018-2019 are likely to have less competition among buyers, the data shows.
Five Northeast metros from last year’s hottest list made this year’s cut, while Midwest metros — which were some of the most affordable in the country in 2025 — are notably absent, a sign that those markets are more likely to remain more buyer-friendly.
Hottest markets tend to have fewer price cuts and more homes selling above list price, a sign that sellers have the upper hand in negotiations. And home prices also tended to grow in these markets in 2025, a year that saw mostly flat price growth.
Home values are expected to continue rising and homes are predicted to keep selling at a brisk pace in 2026 in the following hottest markets:
1. Hartford, CT
Key numbers:
- Typical home value: $381,760*
- 66% of Hartford homes sold above their asking price in 2025
- There are 63% fewer homes for sale than there were pre-pandemic
- Only 16.5% of Hartford listings had price cuts
- Hartford home values grew 4.3% in 2025
- Home values are forecast to rise by 3.9% in 2026
2. Buffalo, NY
Key numbers:
- Typical home value: $277,499*
- 65% of Buffalo homes sold above their asking price in 2025
- There are 39.1% fewer homes for sale than there were pre-pandemic
- Only 17% of listings had price cuts
- Buffalo home values grew 3.7% in 2025
- Home values are forecast to rise by 2.5% in 2026
3. New York, NY
Key numbers:
- Typical home value: $704,284*
- 49% of New York metro homes sold above their asking price in 2025
- There are 48% fewer homes for sale than there were pre-pandemic
- Only 13.5% of listings had price cuts
- New York metro home values grew 2.9% in 2025
- Home values are forecast to rise by 1.5% in 2026
4. Providence, RI
Key numbers:
- Typical home value: $503,409*
- 50% of Providence homes sold above their asking price in 2025
- There are 55% fewer homes for sale than there were pre-pandemic
- 20% of listings had price cuts
- Providence home values grew 2.5% in 2025
- Home values are forecast to rise by 3% in 2026
5. San Jose, CA
Key numbers:
- Typical home value: $1.56 million*
- 62% of San Jose homes sold above their asking price in 2025
- There are 27% fewer homes for sale than there were pre-pandemic
- Only 17% of listings had price cuts
- San Jose home values declined 2.1% in 2025
- Home values are forecast to rise by 1.2% in 2026
6. Philadelphia, PA
Key numbers:
- Typical home value: $378,054*
- 41% of Philadelphia homes sold above their asking price in 2025
- There are 39% fewer homes for sale than there were pre-pandemic
- Only 22% of listings had price cuts
- Philadelphia home values grew 3% in 2025
- Home values are forecast to rise by 1.7% in 2026
Homes for sale in Philadelphia
Homes for rent in Philadelphia
7. Boston, MA
Key numbers:
- Typical home value: $717,711*
- 51% of Boston homes sold above their asking price in 2025
- There are 30% fewer homes for sale than there were pre-pandemic
- 19% of listings had price cuts
- Boston home values grew 1.2% in 2025
- Home values are forecast to rise by 1.5% in 2026
8. Los Angeles, CA
Key numbers:
- Typical home value: $941,869*
- 42% of Los Angeles homes sold above their asking price in 2025
- There are 18.5% fewer homes for sale than there were pre-pandemic
- 21% of listings had price cuts
- Los Angeles home values declined 1.2% in 2025
- Home values are forecast to rise by 1.1% in 2026
9. Richmond, VA
Key numbers:
- Typical home value: $383,275*
- 40.5% of New York metro homes sold above their asking price in 2025
- There are 34% fewer homes for sale than there were pre-pandemic
- 24% of listings had price cuts
- Home values grew 1.3% in 2025
- Home values are forecast to rise by 2.1% in 2026
10. Milwaukee, WI
Key numbers:
- Typical home value: $369,303*
- 50% of Milwaukee homes sold above their asking price in 2025
- There are 26% fewer homes for sale than there were pre-pandemic
- Only 17% of listings had price cuts
- Milwaukee home values grew 3.7% in 2025
- Home values are forecast to rise by 2.1% in 2026
*Home values are as of Oct. 2025
Hot markets tend to mean more buyer competition, and fewer seller concessions
Buyers should prepare for possible bidding wars
If you’re shopping for a home in a hot market, you should be prepared to move quickly if you find a home you want to buy. Moving quickly means knowing how much home you can afford, and getting preapproved to signal to sellers that you’re making a solid offer. Given the lack of inventory in many hot markets, you also should be clear on what is a must-have in a home to minimize buyers remorse.
Zillow’s BuyAbility tool can help you determine how much home you can afford, and an agent can help you craft an offer to increase your odds of prevailing on your offer.
Sellers should be flexible, even in hot markets
Well-priced and well-marketed homes tend to sell quickly, so if your goal is to sell quickly and for the most money, the best option is to put your home in front of as many buyers as possible. That means listing on the Multiple Listing Service.
Talk to an agent to help gauge whether your market is a buyers market or a sellers market. Although affordability is improving for buyers nationally, it’s still a tough market out there for them. Keeping that in mind can help you price accordingly.
Disclaimer:
This article contains forward-looking statements about future housing market conditions, mortgage rates, and other economic factors. These statements are based on current expectations and assumptions, which are subject to change. Actual outcomes may differ materially due to changes in economic and market conditions.
A local agent can help you stay competitive on a budget.
They’ll help you get an edge without stretching your finances.
Talk with a local agentRelated Articles
A local agent can help you stay competitive on a budget.
They’ll help you get an edge without stretching your finances.
Talk with a local agent
