Looking forward to 2026, industry experts have weighed in on the hottest real estate markets we can expect next year. These markets are predicted to experience exceptional growth, rising home values, strong buyer demand, and market dynamics that will make them stand out on the real estate stage.
What Makes These Areas the Hottest Real Estate Markets in America?
These are the key indicators of a hot real estate market:
- Strong job growth due to expanding industries, increasing hiring, and rising wages.
- Population growth fueled by people moving into the area.
- Low housing inventory and multiple offers on well-priced homes.
- Rising home prices.
- Homes regularly selling at or above the list price.
- Affordability relative to nearby cities and towns.
- Good infrastructure and services.
- Quality of life factors.
- A business-friendly environment.
- Excellent schools, including colleges and universities.
With this in mind, let’s look at the markets where these factors converge.
Austin, Texas
Austin remains one of the hottest US real estate markets, and this is expected to continue. Major tech companies like Tesla, Oracle, Apple, and Google create high-paying jobs that attract new residents to the area. There is no state income tax in Texas, which is a further incentive for tech workers to relocate there. The vibrant music scene and outdoor recreation opportunities are attractive to young professionals who have been flocking there from other tech-heavy centres.
Homes in this area are expected to continue to appreciate 6% to 8% annually, with strong competition in the most popular neighborhoods. Although inventory is tight, suburbs around Austin offer affordability with proximity to jobs and easy access to the sights and sounds of this vibrant city.
Buffalo, New York
Buffalo may seem like a surprising choice for a list of the hottest real estate markets in America, but its affordability has made it extremely popular. New residents have been inbound from across the country as well as other cities in New York State, such as Rochester and Syracuse. Job growth in Buffalo has outpaced construction, leading to housing price increases that are expected to continue into 2027.
Cleveland, Ohio
Cleveland offers the attractions of a mid-sized city with strong job growth and beautiful lake views. A thriving arts scene, unique museums, and proximity to other major centers in the Midwest make Cleveland a great place to settle. Nearby national parks are top destinations for nature lovers, from serious hikers to people who prefer an easy stroll in the quiet.
Home prices are expected to rise by 6% to 7% in 2026. Inventory is tight in some areas, but it is rising. Cleveland tends to be overlooked by people who are planning to relocate, but it’s set to be one of the hottest real estate markets for 2026.
Huntsville, Alabama
Huntsville is home to major employers in the aerospace and munitions sectors, as well as other types of manufacturing. Exponentially increasing interest and investment in these sectors are expected to attract new residents to the area.
Huntsville has a wide range of housing prices, making it a great destination for house-hunters in all income brackets. Home prices are expected to appreciate between 9% and 12% with increased federal defense spending and expansion in the aerospace industry. If you’re interested in buying in one of the hottest real estate markets in the South, put Huntsville on the list.
Tampa-St. Petersburg, Florida
Florida’s Gulf Coast offers a diverse economic foundation in addition to a temperate climate and all the great perks of a coastal lifestyle. Unlike Atlantic coast cities like Miami and Orlando, the state’s Gulf Coast is not as reliant on the tourism industry. Tampa-St. Petersburg has been chosen for major corporate relocations and expansions in the last few years, making this one of the hottest real estate markets anywhere in the country.
Price appreciation in this area is expected to be 7% to 9%, with particularly strong demand in St Petersburg, South Tampa, and their suburbs. Inventories are low, so expect strong competition if you plan to buy there.
Raleigh-Durham, North Carolina
The Research Triangle of Raleigh, Durham, and Chapel Hill combines world-class colleges, Research Triangle Park, a thriving tech sector, and a high quality of life. Educated workers and researchers are drawn to the area, bringing in further investment and the infrastructure to support both industries and residential growth. Despite the four-season climate, winters tend to be on the milder side in this area.
Home prices are expected to increase 8% to 11% in the upcoming year. Inbound worker migration will keep inventory lagging behind the influx of new residents. The unique combination of job prospects, educational excellence, and desirable climate is why Raleigh-Durham is on the list of the hottest real estate markets in America.
Spokane, Washington
House hunters looking for the Pacific Northwest lifestyle but priced out of bigger markets like Seattle and Portland are flocking to Spokane. With its top-tier outdoor recreation options and relaxed, stress-free lifestyle, it’s a great place for young people and retirees alike. It’s been a particularly popular choice for remote workers as well.
The housing market in Spokane is competitive, but median home prices are still quite low, making it an excellent prospect for house-hunters who value a rewarding lifestyle at a moderate price.
Tips for Buying in the Hottest Real Estate Markets
Hot markets move fast. If you’re planning to buy in one, be prepared. Here are some top tips for buying in a competitive market:
- Act decisively (but not emotionally) when you find the right property. If you take your time going back and forth on a decision, another buyer will swoop in and make a strong offer.
- Get preapproved for a mortgage and have your financing ready to go. Sellers value a buyer who is ready to close.
- Consider slightly less competitive suburbs around your ideal city center. Since prices and demand can vary by neighborhood, working with a real estate agent who knows the city intimately is essential.
- Prepare your strategy for bidding wars: know what your ceiling is, how you want to negotiate, and when to walk away.
Communicate transparently with your real estate agent when shopping in a hot market. Decide on a plan for your house-hunting journey and get your strategy set right from the start. The more organized and decisive you are in this mission, the more successful you’ll be.
