America’s 10 Best Up-and-Coming Housing Markets for 2026
Written by
Daria Uhlig
Edited by
Rebekah Evans
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The National Association of Realtors (NAR) calls it a “reawakening.” Redfin termed it a “reset.” Both say the U.S. housing market seems poised for a turnaround in 2026 as mortgage rates continue their slow decline, home sales grow and prices stabilize.
But real estate markets are local, so what’s happening at the national level can look very different from conditions in any given market.
With that in mind, here are contenders for America’s best up-and-coming markets for 2026, based on analyses from Zillow, Redfin and the National Association of Realtors.
New York City Suburbs
New York, New Jersey and Connecticut suburbs within easy commuting distance of New York City are evolving as hot markets thanks to an uptick in the number of companies enforcing return-to-work policies, according to Newsweek.
Specifically, this area includes Long Island and the Hudson Valley in New York; Bergen, Hudson, Essex, Passaic and Union counties in New Jersey; and Fairfield County, Connecticut.
New York City
As for the city itself, Zillow named it one of the hottest markets for 2026 based on low inventory compared to pre-pandemic levels, the high number of homes selling above asking price in 2025 (49%) and the low number of homes that had price cuts (13.5%).
Buffalo, New York and Syracuse, New York
High demand, strong economies and affordable prices below the national median are driving growth in Upstate New York, according to Riskwire.
Buffalo (according to Zillow) and Syracuse (per Redfin) are especially well positioned to take off this year. While New York is seeing a statewide influx of residents, according to Allied Van Lines’ 2025 U.S. Migration Report, Allied marketing director and resident moving expert Ryan Cox told GOBankingRates that “there’s a preference for mid-sized cities that offer stable job markets and lifestyle preferences.”
Hartford, Connecticut
Hartford is not within commuting distance of New York City, but prices are affordable and about two-thirds of homes sold above their asking prices last year. What’s more, inventory is a whopping 63% lower than before the pandemic, according to Zillow, which makes for a highly competitive market. Zillow predicts higher-than average price growth for 2026.
Richmond, Virginia
Zillow and NAR both named Richmond as a hot spot for 2026. Zillow noted that over 40% of homes sold above asking price last year, and 24% had price cuts. Home values grew slightly despite flat pricing on a national scale.
NAR’s forecast cited metrics such as improving price-to-income ratio, increased job growth and an increase in the number of households that would qualify for a mortgage loan on a median-priced home.
Columbus, Ohio
All three reports noted that the Midwest is desirable because homes are relatively affordable. According to Redfin, the region is also less vulnerable to natural disasters like floods and wildfires, compared to other areas of the U.S.
Robert Dietz, chief economist for the National Association of Home Builders, told NAR he sees areas of strength developing in the Midwest, where affordable markets like Columbus, located near major universities, “are showing outsize growth.”
Madison, Wisconsin
Madison is another Redfin pick for hottest markets. A growing population that could soar 37% in the next 25 years, according to the Milwaukee Journal Sentinel and historically low inventory are likely growth drivers, especially for high-income buyers.
Kansas City, Missouri
New construction is adding housing inventory in Kansas City and giving buyers more opportunities to take advantage of slowly falling mortgage rates.
In an interview with KCTV, Dietz said Kansas City’s market is growing faster than the rest of the U.S. and that the city is in a good spot for the future.
Salt Lake City
Salt Lake City made NAR’s list, thanks to the number of households that would qualify for a mortgage loan as well as improved correlation between price and income, thanks to 6.5% income growth. In addition, millennials, which comprise the second-largest group of homebuyers (per NAR), make up almost 41% of Salt Lake-area households.
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