10 Housing Markets Expected to See the Most Activity in 2026

The National Association of REALTORS released its forecast for housing markets likely to see the strongest sales activity in 2026. The analysis points to a combination of improved affordability, growing inventory, and stronger buyer demand as key drivers.

What’s Driving the 2026 Forecast

Mortgage rates are expected to drop to an average of 6% in 2026, down from roughly 7% at the start of 2025. This shift could qualify an additional 5.5 million households nationwide to purchase homes, including 1.6 million renter households.

“The top 10 housing hot spots for 2026 have a combination of strong demand potential, projected improvements in affordability, and, most critically, a housing stock that matches the budgets of the buyers who are returning to the market,” says Lawrence Yun, NAR’s chief economist.

NAR analyzed metro areas with populations over 250,000, weighing factors such as buyer eligibility at lower mortgage rates, improvements in for-sale inventory, income growth, and overall affordability.

The Top 10 Markets

The markets expected to outperform in 2026 are:

• Charleston, S.C.
• Charlotte, N.C.–S.C.
• Columbus, Ohio
• Indianapolis, Ind.
• Jacksonville, Fla.
• Minneapolis–St. Paul, Minn.–Wis.
• Raleigh, N.C.
• Richmond, Va.
• Salt Lake City, Utah
• Spokane, Wash.

Jacksonville’s Position in the Top 10

Jacksonville ranks as the only Florida market on the list. The city benefits from a combination of relative affordability compared to other Florida metros, steady population growth, and a housing supply that aligns with buyer budgets. As mortgage rates decline, Jacksonville’s market is positioned to attract buyers who were previously priced out.

Florida’s broader residential real estate market has seen significant price appreciation in recent years, which has limited affordability in many coastal and southern markets. Jacksonville’s inclusion suggests it offers a more accessible entry point for buyers compared to higher-cost areas like Miami, Tampa, or Orlando.

What This Means for Buyers and Sellers

Lower mortgage rates are expected to bring more buyers into the market, particularly first-time purchasers and those who delayed decisions due to high borrowing costs. For sellers, increased buyer activity could translate to faster sales, though competition from rising inventory may temper price gains.

Nadia Evangelou, senior economist and director of real estate research at NAR, notes that while these 10 markets may lead the housing rebound, more households nationwide are likely to benefit from the same factors. “Home buying benefits most when affordability is matched with attainability,” she says.

Looking Ahead

The 2026 forecast reflects a shift toward greater market balance. Buyers may find more options, and sellers may see steadier demand. For real estate professionals, the data points to markets where activity is likely to accelerate as conditions improve.

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