Buyers Flock to Affordable, Resilient Housing Markets

As 2026 kicks off, homebuyers are still contending with high mortgage rates, limited inventory, and elevated home prices. Even so, some markets are seeing an increase in buyer traffic. According to the Winter 2026 Wall Street Journal/Realtor.com Housing Market Ranking, buyers are gravitating toward smaller and mid-size metros that deliver greater affordability, quality of life, and climate resilience.

Leading the way in these trends are South Bend, Ind.; Appleton, Wis.; Manchester–Nashua, N.H.; Canton, Ohio; and Lancaster, Pa.; among several others. 

Affordability remains a top priority for homebuyers

Housing affordability continues to be top of mind, pushing many buyers toward smaller markets where homes are more attainable. In the report’s top 20 buyer's markets, housing costs and monthly payments are generally more manageable. On average, household incomes in these metros are just 3.6% below the level needed to purchase a median-priced home. By comparison, incomes across the 200 largest metros fall about 20% short of that benchmark.

Climate resilience is also a major consideration for today's homebuyers

The report’s top 20 markets also score higher on climate resilience. On average, only 5.7% of homes in these metros are at risk of climate-related damage over the next 30 years, compared with 45.8% across the nation's 200 largest metros.

Still, even the top-ranked markets have their challenges

While affordability is stronger than the national average in the report's top ranked markets, conditions could shift as buyer competition increases. Down payments in these markets rose an average of 9.7% year-over-year in Q-4 2025, compared with the 8.7% decline recorded nationwide. At the same time, home prices in the top-ranked markets increased an average of 3.9% in December 2025, while prices nationally fell by 0.6% during hte same month.