Competition for houses is set to be fiercest in Hartford, Conn. this year, beating back-to-back leader Buffalo, N.Y. in Zillow’s annual hottest markets forecast.
Common among the Northeast and coastal California metros at the top of the list are few options for buyers to choose from. That spurred fast sales and home price growth in 2025 and should keep home values rising fast in 2026.
“Competition among buyers will be stiff and sellers will have the upper hand in this year’s hottest markets,” Zillow Chief Economist Mischa Fisher said in a release. “Shoppers will need to tap all the resources they can muster in these fast-moving markets, from their team of experts to tech aids to financial assistance, but successful buyers will quickly gain equity. In today’s market, affordability is all-important, but any improvements in 2026 will depend on location.”
Zillow's hottest market analysis ranks the nation’s 50 most populous metros based on:
- Home price growth — both past and expected;
- 2025 Zillow data on housing market competition: how quickly homes sold, how often sellers cut prices, and the share of homes that sold for over list price; and
- Job growth per new home permitted.
Hartford ranked fourth on Zillow’s 2025 predictions list. Home values grew faster in Hartford than in any other major metro last year, up 4.6 percent. According to Zillow, the climb should continue in 2026, as Hartford is forecast to lead price growth again this year, but this time at a more relaxed pace of 3.9 percent.
Buyers faced extreme pressure in Hartford last year, with a nation-high 66.4 percent of homes sold over asking price and the second-lowest share of homes with a price cut, at 16.5 percent. Injections of inventory aren’t likely to come from either existing owners or builders.
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.
Third on the list is the New York metro area, which includes parts of New Jersey and Pennsylvania. Contributing to its high ranking in 2026 are a positive home price forecast, strong employment, and the lowest share of listings with a price cut among major metros at13.5 percent. Economists at StreetEasy have predicted a faster-moving market with more inventory within New York City’s five boroughs this year.
Marketwide Zillow predictions for 2026 call for home values to recover from a flat spot in 2025 and rise by 1.7 percent. Mortgage rates are forecast to continue a gentle downward path toward 6 percent, which should give a boost to home sales, and affordability should improve somewhat for renters and buyers alike.