Homes Experts Predict Will Be Popular In 2026, Based On Zillow Data

Zillow released its annual hottest-market forecast for 2026, and this year’s report had some surprises compared to previous years. After two years at the top of the list, Buffalo, New York, lost the number one spot to Hartford, Connecticut. The real estate listing company expects competition to be the hottest in the Northeast and the Bay Area due to a lack of new housing construction. For buyers, that means getting financially prepared before touring that first property. Sellers in those markets, on the other hand, will likely see fewer price cuts and less time on the market.

Zillow’s annual market analysis ranks the nation’s 50 most populous metros based on several factors. This includes home price growth, 2025 data, and job growth for each area. The company uses both past and expected home price growth in its calculations. It also analyzes 2025 housing market competition data collected from its own platform. This data covers how quickly homes sold, how often sellers cut prices, and the number of homes that sold over asking. The analysis also looks at job growth per new home permitted. All these factors help Zillow build its annual report. Here are the housing markets predicted to heat up in 2026.

Hartford, Connecticut is Zillow’s hottest market for 2026

Hartford beat out Buffalo for the top spot on Zillow’s list. The company predicts Connecticut’s capital will lead the country in 3.9% annual price growth for 2026. This is good news for both sellers and new buyers, who’ll see their investment start growing right away. In 2025, 66.4% of homes sold for more than the listing price, meaning two-thirds of sellers got more than what they initially asked.

Hartford, the Insurance Capital of the World, has lots of historic districts with charming older homes. Communities often try to preserve the area’s history by enacting restrictive covenants. These legal agreements set standards for property upkeep and exterior design, and are common in planned communities and HOAs. Covenants in historic districts may also limit interior choices, like paint colors and renovations. Before buying, ask to see a home’s covenant, if it has one. If you’re already planning renovations, you’ll want to know the rules ahead of time.

Buffalo, New York loses its title but stays competitive

Buffalo may have lost the top spot, but it’s still a competitive market. The city had the highest competition value on Zillow’s heat index at 95.8%. Sellers also saw 3.7% year-over-year growth in home values. Buffalo has the lowest home value index at $277,499, but don’t let that fool you – it’s expected to be tough for buyers in 2026.

Buffalo is known for its community spirit, which is where it got its “City of Good Neighbors” nickname. Areas like Elmwood Village, with its many bars, restaurants, parks, and shops, are local favorites, along with Allentown and Park Meadow. When considering a neighborhood, factor in your long-term plans too. What might seem ideal now could change once you have kids and the nightlife, festivals, and parking become inconveniences.

New York sellers aren’t cutting prices

It’s hard to imagine the NY metro area, which includes parts of NJ and PA, ever falling out of the top 10 on Zillow’s ranking. The Big Apple jumped from 41 in 2025 to the number 3 spot for 2026, thanks to a positive home price forecast, strong employment, and the lowest share of listings with price cuts at 13.5% – great news for sellers.

There’s no shortage of interesting places to live in the NYC metro area, from Greenwich Village to Harlem to Williamsburg. Don’t forget New Jersey and Pennsylvania are options too. While living in the city can feel glamorous, it may not be as important if you’re working remotely or need more space.

Providence, Rhode Island to see 3% home growth

Providence dropped from 3rd to 4th on Zillow’s list, but its home values are still expected to grow 2.5% year-over-year in 2026. The market heat index sits at 70%, the lowest of the top 5, so buyers may have a bit more breathing room, though it’ll still be a competitive market.

Providence has a college-town feel and is close to big cities like Boston, Newport, and NYC. The neighborhoods of College Hill and Thayer Street offer amazing views, while the revitalized West End has cool new restaurants and breweries.

San Jose, California sees high competition

San Jose, the capital of Silicon Valley, has the most expensive homes on the list, with an average value of $1,558,466 in October 2025. Though prices dipped -2.1% that year, Zillow forecasts a 1.2% increase for 2026. Plus, San Jose scored a 90.6% on the heat index, meaning it’ll be extremely competitive for buyers.

There’s no shortage of interesting areas in San Jose. Willow Glen has small-town charm with big-city access, while West San Jose is more affluent and home to the famous Winchester Mystery House.

Philadelphia sees less competition for buyers

Philly buyers will get a bit more breathing room, with a heat index of just 59.8%, the lowest on the list. However, home values are still expected to grow 3% year-over-year, so sellers will be in a good position too. The forecasted growth of 1.7% puts new owners in a good spot to build equity.

Philly is a historic city with lots to offer history buffs, from Independence Hall to Edgar Allan Poe’s home. The city is also known for its vibrant art scene, with beautiful murals covering the walls in many neighborhoods.

Boston home values expected to stay high and grow

Boston’s home values have never been cheap, and that trend continues. With a home value index of $717,711, buyers will need a big down payment ready to go. Competition is also high at 75.2%, and home values are expected to grow 1.5% year-over-year. Buyers hoping for a break in Boston will have to wait at least another year.

While Boston is expensive, its blend of history and tech makes it a unique and appealing place to live. Neighborhoods like Beacon Hill, Back Bay, and South Boston each have their own charms, from the arts hub of South End to the up-and-coming vibe of South Boston.

Los Angeles sees opportunities for first-time buyers

<div class="slide-key image-holder gallery-image-holder credit-image-wrap" data-post-url="https://www.housedigest.com/2083276/hot-housing-markets-2026-zillow-data/" data-post-title="10 Housing Markets Predicted To Heat Up In 2