Zillow expects Hartford, Connecticut, to be the nation’s hottest housing market in 2026, with Buffalo, NY, New York, Providence, RI, and San Jose rounding out the top five. This means the previously fourth-ranked hottest market has jumped up to dethrone Buffalo, NY, Zillow’s hottest market two years running. A strong home price forecast and demand that far outpaces supply are common threads among what should be the most competitive markets for buyers in 2026.
Nationwide, Zillow forecasts relatively slow and steady growth for both home values and sales in 2026. Affordability will remain a challenge—whether that improves for potential buyers depends on location and unpredictable mortgage rates. Fortunately for buyers, inventory should continue to recover from a deep pandemic-era deficit.
A common characteristic of the most competitive markets in 2026 is a limited selection for potential purchasers, which intensifies the competition for available properties. Among the five most competitive metropolitan areas in 2026, San Jose exhibits an inventory level closest to that observed before the pandemic; however, a 27% deficit persists, exceeding the national deficit of 17%. Hartford experiences the most significant shortage nationwide, with a 63% reduction in market listings compared to the period of 2018-2019.
In Hartford, desirable properties experienced high demand, with the average listing remaining available for approximately one week. The majority of homes sold for more than the listed price in 2025, which contributed to price increases. Hartford is projected to have the most significant home price growth among the top five most competitive markets, and the shortest time on market. This suggests that prospective buyers should anticipate needing to submit competitive offers in 2026.
Zillow forecasted Buffalo to be the hottest market in 2024 and 2025, and both calls were on-the-money. Sellers held a strong advantage in negotiations there throughout last year, giving it the highest competition value on Zillow’s market heat index among major metros.
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