These Housing Markets Are Seeing the Most Competition

As of January 2026, home sales were down by 8.3% compared with January the prior year. However, some local housing markets remain competitive, with sales increasing year-over-year. A recent report from Construction Coverage analyzed the largest metros in the U.S., measuring metrics such as the change in median sales prices, the share of homes that sold above asking, the number of days properties spent on the market, and more.

The analysis found that the Northeast continues to be the most competitive, while sales in the South and West have cooled considerably over the past year.

Northeastern metros lead the way

Seven of the top 10 most in-demand states are located in the Northeast, according to the report. These include: Connecticut, New Jersey, Rhode Island, New York, Massachusetts, Wisconsin, Illinois, New Hampshire, Nebraska, and Pennsylvania.

However, when looking at metros, California has some of the most active markets. Los Angeles is the most in-demand metro, and other California cities follow closely behind, including San Francisco, San Jose, and Oakland. Like many of the top-ranking Northeastern states, these metros lack new housing supply, which is likely driving up competition.

Meanwhile, Southern and Mountain West states have less competition

Home sales in many Southern and Mountain West markets have cooled off over the past year. The report found that the markets seeing the least amount of competition include: Texas, Florida, Arizona, Montana, Louisiana, South Carolina, Tennessee, Georgia, North Carolina, and then Hawaii.

Metro areas follow this trend, with a majority also being located in the South and Mountain West. Jackson, Fla., is seeing the least competition, followed by Austin, Texas, and then Tampa, Fla.