Zillow Predicts Hottest Markets of 2026

Hartford, Conn., topped the list of the predicted hottest housing markets this year compiled by Zillow, Seattle.

Next is Buffalo, N.Y., New York City, Providence, R.I., and San Jose, Calif.

Rounding out the top 10 are Philadelphia, Boston, Los Angeles, Richmond, Va., and Milwaukee, Wis.

Last year Hartford ranked fourth on the list. It unseated Buffalo for that top spot–the upstate New York city held it in 2024 and 2025.

Hartford has the fewest homes available compared with pre-pandemic of any major market. Inventory in the city is still down 63%–marking strong homebuyer competition, Zillow notes. And, more than 66% of homes sold in 2025 in Hartford were for above list price, the highest percentage of any major metro.

Among the five hottest metros, San Jose has the closest inventory to pre-pandemic levels, at 27%. But, all five have larger deficits than the nationwide rate of 17%.

All five markets also have an above-average outlook for home value appreciation in 2026, with Hartford leading the way at an anticipated 4%.

“Competition among buyers will be stiff and sellers will have the upper hand in this year’s hottest markets. 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, but successful buyers will quickly gain equity,” said Zillow Chief Economist Mischa Fisher. “In today’s market affordability is all-important, but any improvements in 2026 will depend on location.”