- - These are the US’s 10 hottest housing markets for 2026, says Zillow. Plus how both buyers and sellers can make a ‘fast-moving market’ work for them

Libby MacDonaldJanuary 15, 2026 at 10:00 PM

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For most of the country, housing has become a buyer’s market over the last year or so, but certain high-demand markets will still give sellers the upper hand in the year to come.

These markets, according to Zillow (1), mostly concentrated in the Northeast and California’s Bay Area, have seen a steep drop in available inventory since 2018-2019. Markets that display the opposite trend, that have more homes for sale now than in the days before the pandemic, are much less likely to require buyers to be as competitive.

Unlike those buyer’s markets, where aspiring homeowners can take their time and afford to be picky, would-be purchasers in these “buyer outliers” markets should expect competition to be stiff.

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But buyers who successfully negotiate competitive markets may have their efforts rewarded with properties more likely to increase in value, thus driving greater equity gains, than in cooler markets. The markets forecast for hotness in the year to come also tended to see price increases in 2025, despite the market being overall flat.

Of course, getting in is the hard part. Sellers’ markets see fewer price cuts and more homes selling above the listed price, both of which are a sure sign that sellers have the upper hand. This means buyers need to do whatever they can to give themselves a leg up in these markets that are set to continue seeing brisk sales in the year to come.

What’s hot and why

Zillow identified the 10 hottest “fast-moving markets” by analysing America’s 50 largest metro areas, taking note of the growth of home prices — both in terms of what’s already happened and what is forecast.

Determing factors include how quickly homes in the area are being sold, what proportion of sellers have to drop their asking price and the percentage of sales that were over asking. Data comparing the number of new jobs created to the number of building permits issued for new homes was also considered. (Zillow noted that all these home values are as of October 2025.)

1. Hartford, Connecticut

Typical home value: $381,760

Home values are forecast to rise by 3.9% in 2026.

2. Buffalo, New York

Typical home value: $277,499

Home values are forecast to rise by 2.5% in 2026.

3. New York, New York

Typical home value: $704,284

Home values are forecast to rise by 1.5% in 2026.

4. Providence, Rhode Island

Typical home value: $503,409

Home values are forecast to rise by 3% in 2026.

5. San Jose, California

Typical home value: $1.56 million

Home values are forecast to rise by 1.2% in 2026.

6. Philadelphia, Pennsylvania

Typical home value: $378,054

Home values are forecast to rise by 1.7% in 2026.

7. Boston, Massachusetts

Typical home value: $717,711

Home values are forecast to rise by 1.5% in 2026.

8. Los Angeles, California

Typical home value: $941,869

Home values are forecast to rise by 1.1% in 2026.

9. Richmond, Virginia

Typical home value: $383,275

Home values are forecast to rise by 2.1% in 2026.

10. Milwaukee, Wisconsin

Typical home value: $369,303

Home values are forecast to rise by 2.1% in 2026.

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How buyers can beat a hot market

Buyers in hot markets need to be ready to do what they can to get out in front of their competition, and to move fast when they find a property they want to close on.

What buyers can do to be prepared:

Getting preapproval shows sellers you’re serious.

Know what your realistic home-buying budget is, not just what a lender will approve you for. Factor in closing costs and have funds set aside for that.

If appropriate, consider an escalation clause that increases your offer if competing bids come in can help you stay competitive.

Have a clear walk-away number and be ready to abide by it. This discipline will keep you from making impulsive decisions.

Be ready to act fast, and that means viewing and making offers on a home as soon as it’s listed.

Research the market ahead of time. Having a clear idea of what comparable properties have sold for can help you avoid situations where what seems like a bargain turns out to be the spark for a bidding war.

Partner with a real estate pro who understands the local market.

Flexibility, on such matters as possession dates, can give you an advantage over other buyers. Waiving home inspections before purchase can be another advantage in hot markets, but be sure to consider the risk this represents.

Establishing your nonnegotiables beforehand — what you need in a house vs. what you want — can also help buyers determine when to pass on a property vs. overpaying in a competitive market.

How sellers can make the most of a hot market

Even sellers in hot markets should be strategic in their approach to make the most of their leverage.

What sellers can do to be prepared:

Price competitively. Overpricing can reduce your potential pool of interested buyers. While pricing too high can lead to a home remaining unsold long enough to seem stale

Get eyes on your property. Homes that are marketed widely (e.g., on the Multiple Listing Service) tend to attract more attention and buyers, resulting in potentially quicker sales for more money.

Remember first impressions matter, so stage accordingly and consider enlisting professional stagers to maximize saleability.

Be prepared, both mentally and practically, for things to move fast.

When they do roll in, review offers strategically. Look beyond price for other factors, such as buying conditions and closing dates, that may not work or may not be worth it for you.

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Zillow (1)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Original Article on Source

Source: “AOL Money”