20 Most Optimistic Housing Markets Heading Into 2026

If you’re looking for housing markets on the rise, think Midwest and East Coast.

All 20 of the entries in GOBankingRates’ latest list of top housing markets are located in those two regions. The list includes five locales in Wisconsin (including the hottest market), five in Pennsylvania and four in Illinois.

To compile the list, GOBankingRates analyzed data from Zillow’s August 2025 report. The nation’s 300 largest Metro Statistical Areas (MSAs) were reviewed, data was gathered for each across 12 categories, and figures were then weighted to produce rankings.

Each of the 20 cities listed far exceeded national averages. Those figures include an average of $4,400 in value lost between May and August of this year — and a 0.16% increase from August 2024 to August 2025. That translates to an average increase of just under $600.

The statistics include home values from August 2024 and 2025, projecting to August 2026. Here’s a rundown, starting with the 20th hottest market heading into the new year and ending with the hottest.

• 1-year home value projection: 4.4%
• 1-year home value change: 4.51%

Pottsville homeowners gained about $1,400 in value on average between May and August of this year, ending up with average values around $158,000. That figure is expected to top $165,000 by next August.

• 1-year home value projection: 1.6%
• 1-year home value change: 4.99%

The average value of a Champaign home as of last August was $227,000, up from about $223,000 in May. That represents an increase of nearly 2%.

• 1-year home value projection: 1.5%
• 1-year home value change: 5.71%

Wausau’s average home value in August came in at $260,415. That number is expected to top $264,000 by next August.

• 1-year home value projection: 1.2%
• 1-year home value change: 3.18%

Milwaukee’s projected average home value for August 2026 is roughly $375,500. That compares to $371,000 as of August 2025.

• 1-year home value projection: 3.3%
• 1-year home value change: 5.29%

Homeowners in New York city saw average value increases of about $4,100 — or 1.7% — between May and August this year. Syracuse’s projected August 2026 home value is $261,000.

• 1-year home value projection: 3.9%
• 1-year home value change: 4.87%

In Norwich, average home values sat at $404,000 as of last August. That’s about $6,000 higher than the numbers for May 2025. A jump to nearly $420,000 is predicted by next August.

• 1-year home value projection: 3.2%
• 1-year home value change: 4.83%

Average home values in Reading topped $302,000 in August 2025. They are expected to top $312,000 by next August.

• 1-year home value projection: 0.6%
• 1-year home value change: 5.21%

Springfield residents saw a 2.3% increase in average home value between May and August of this year. The increase from August 2024 to August 2025 penciled out to roughly $9,400.

• 1-year home value projection: 3.5%
• 1-year home value change: 6.20%

Utica homeowners enjoyed a nearly 3% increase in value between May and August 2025. They picked up about $13,000 in value between August 2024 and August 2025.

• 1-year home value projection: 2.7%
• 1-year home value change: 4.43%

The average value of a Lancaster home topped $370,000 last August. That figure is expected to flirt with $374,000 by next August.

• 1-year home value projection: 3.1%
• 1-year home value change: 5.83%

Average home values in Lebanon broke the $300,000 mark in August, settling at just over $305,000. Values are expected to hit $309,000 in November and $315,000 by next August.

• 1-year home value projection: 3.4%
• 1-year home value change: 6.19%

Erie’s average home values jumped 2% between May and August this year, settling at just shy of $216,000. That figure is expected to bump up to $223,000 by next August.

• 1-year home value projection: 2.8%
• 1-year home value change: 7.99%

Peoria’s nearly 8% year-over-year increase was the biggest jump among the cities on the list. The average home value here stood at nearly $164,000 in August, with an expected jump to $168,000 by next August.

• 1-year home value projection: 4.1%
• 1-year home value change: 4.28%

Average home values in Hartford increased by about $5,000 between last May and last August, when they registered at $384,000. They are expected to approach $367,000 in November and $389,000 by August 2026.

• 1-year home value projection: 2.4%
• 1-year home value change: 3.73%

As of August, the average home value in Rochester was just shy of $271,000. That value is actually predicted to stay flat leading up to August 2026.

• 1-year home value projection: 3.2%
• 1-year home value change: 4.94%

Average home prices in Green Bay are projected to top $345,000 by next August. That’s compared to $334,000 this past August.

• 1-year home value projection: 3.1%
• 1-year home value change: 6.03%

Homeowners in this southern Wisconsin town enjoyed a modest increase of $3,400 in average home values between May and June. The average home value here stood at about $284,000 in August.

• 1-year home value projection: 4.6%
• 1-year home value change: 6.61%

Saginaw’s 2.9% average home value increase from May to August was the highest among cities on GOBankingRates’ list. That increase boosted the average value to $166,000, and it is expected to hit $174,000 by next August.

• 1-year home value projection: 4.3%
• 1-year home value change: 6.64%

Rockford is trending toward an average home value of $217,000 by next August. That’s compared to $208,000 this past August.

• 1-year home value projection: 3.2%
• 1-year home value change: 6.35%

Appleton homeowners picked up about $20,000 in value on average between August 2024 and August 2025, when values stood at $339,000. Robust growth is expected to continue into 2026, with projected values next August expected to approach $350,000.

Editor’s note: Photos are for representational purposes only and might not reflect the exact locations listed.

Methodology: For this piece, GOBankingRates examined the 300 largest Metropolitan Statistical Areas (MSAs) to assess real estate market performance using 12 key indicators drawn from Zillow’s August 2025 dataset. These indicators included short- and long-term changes in home value, projected value trends over three months and one year, inventory levels, average time from listing to pending and from pending to close, list-to-sale ratios and pricing dynamics such as the share of listings with a price cut and the average size of those cuts. Each MSA was scored across all factors, with lower scores indicating stronger housing markets. To emphasize volatility and pricing pressure, the 3-month and 1-year changes in home value (both percentage and dollar), along with the share and size of price cuts, were weighted twice as heavily, while inventory was weighted at half strength. All data was collected on Oct. 7, 2025.