The housing markets in the United States that are expected to see the most growth in home sales and prices combined are mostly in the Northeast, a notable shift after the South and West dominated last year's Realtor.com rankings.
Hartford, Connecticut, Rochester, New York, and Worcester, Massachusetts, topped the list, which examined the 100 largest metro areas in the country. The three cities have a combined existing-home sales and price growth of 17.1%, 15.5% and 15%, respectively, according to Realtor.com.
"We expect a more balanced housing market in 2026, leaning slightly in buyers' favor compared with 2025, as modest improvements in affordability, driven by mortgage rate relief and slower home price growth, give incomes a bit more room to catch up," said Danielle Hale, chief economist at Realtor.com.
The cities projected to be most affordable in the new year are primarily in the South and Midwest, as Jacksonville, Florida, Charleston, South Carolina and Indianapolis headline the National Association of Realtors top 10 homebuying hot spots for 2026.
"Lower mortgage rates and larger inventory will attract buyers back to the market in 2026," NAR Chief Economist Lawrence Yun said. "The top 10 housing hot spots for 2026 have a combination of strong demand potential, projected improvements in affordability, and, most critically, a housing stock that matches the budgets of the buyers who are returning to the market."
Overall, NAR forecasts existing-home sales to increase 14%, home prices to rise 4% and mortgage rates to drop closer to 6%, they
"After three years of flat home sales, a solid double-digit percentage increase is expected in 2026," Yun said. "In 2026, we expect higher inventory, modest improvements in affordability, and more accommodating monetary policy from the Federal Reserve will help more Americans buy their next home."
The top of Realtor.com's list share similar qualities with the National Association of Realtor's, including affordable homes and financially well-qualified households, but the most important advantage is strong value for buyers.
The median list price across the top 10 is $384,000, below the national median of $415,000, making these markets attractive for any buyer, Realtor.com said.
But inventory is tight in the top metros, with several, such as Hartford and Worcester, 60% or more below prepandemic levels. The limited supply combined with the increasing demand has caused prices to rise faster than the national average.
Housing stock in these markets is also older, as are the residents who live in them. Residents in the top markets are well older than the national average of 40, with median ages mostly in the mid-50s. Pittsburgh leads at 57, followed by Providence, Rhode Island, New Haven, Connecticut, and Hartford at 55, according to Realtor.com.
"Our 2026 top housing markets offer better value than nearby high-cost hubs, yet steady demand and persistent inventory shortages keep prices moving upward," Hale said. "For buyers, that can mean more competition and faster price gains. For sellers and homeowners, it signals strong demand or home price appreciation and equity gains."
If mortgage rates stay relatively flat as many economists predict, income growth is still expected to outpace home price gains in the new year and
