What are Zillow's hottest housing markets for 2026?

Hartford leads Zillow's 2026 hottest markets forecast, followed by markets like New York, Providence, and San Jose.

Why is Hartford expected to be the hottest market?

Hartford faces a significant deficit in housing inventory, leading to high competition, rapid sales, and strong price growth.

How will mortgage rates affect the 2026 housing market?

Mortgage rates are forecast to decline towards 6%, which is expected to boost home sales and improve affordability for buyers.

Home / Business and Economy / Hartford's Housing Market Ignites in 2026

Hartford's Housing Market Ignites in 2026

8 Jan

•

Summary

Hartford leads hottest housing markets in 2026 forecast.
Few homes available in Northeast and Bay Area markets.
Home values forecast to grow 3.9% in Hartford this year.

Hartford's Housing Market Ignites in 2026

Hartford is predicted to be the hottest housing market in 2026, with Zillow forecasting intense competition among buyers. This marks a shift from previous years, where Buffalo held the top spot. The Northeast and coastal California metros, including Hartford, face a critical shortage of available homes, driving rapid sales and price appreciation.

In Hartford, inventory remains 63% below pre-pandemic levels, leading to a high percentage of homes selling above list price. Zillow anticipates home values in Hartford to grow by 3.9% in 2026. Similar conditions are expected in the New York metro area, ranking third, with strong employment and a low percentage of price cuts contributing to its high placement.

Nationally, Zillow forecasts a modest 1.7% increase in home values for 2026, with mortgage rates trending downward toward 6%. This outlook suggests a slight improvement in affordability. Buyers in competitive markets are advised to secure pre-approval, explore down payment assistance, and utilize digital tools to navigate the fast-moving real estate landscape.