5 Most Competitive Housing Markets of 2026

The nationwide housing market is projected to remain steady throughout 2026, with minimal home price growth and slow sales. Some markets, however—especially those in supply-constrained Northeastern states—are expected to remain competitive over the next year.

According to a housing market platform Zillow's 2026 Hottest Housing Markets forecast, the tightest buyer's markets of 2026 will be Hartford, Conn.; Buffalo, N.Y.; New York City; Providence, R.I.; and San Jose, Calif.

Why Hartford?

While Hartford ranked fourth in Zillow’s 2025 Hottest Housing Markets forecast, it's now more competitive than Buffalo, which held the top spot for the past two years. In Hartford, housing inventory is still down by 63%, and two-thirds of homes sold above their list price in 2025—both strong indicators of high buyer demand.

Home values are only continuing to grow in Hartford, as well. In 2026, home values in the merto area are projected to grow by 4%, following an appreciation rate of 4.3% in 2025. Comparatively, Buffalo is projected to see home values grow by just 2.5% during 2026.

Competition is expected to heat up in these five markets over the course of 2025

While Hartford remains the most competitive metro, all five of the markets tracked by Zillow are expected to see intense competition over the course of the year. In San Jose, inventory is the closest to pre-pandemic levels, but even so there is still a 27% deficit, far higher than the 17% deficit nationwide.

The lack of inventory across these metros is expected to keep prices up. In 2025, Hartford, Buffalo, and San Jose each recorded 60% of homes that sold above their list price, and in New York City, just 13.5% are expected to receive a price cut before selling.