Residential Real Estate News
U.S. Housing Markets Poised for 2026 Rebound, NAR Says
The U.S. housing market is finally positioned for a recovery in 2026, with a set of cities emerging as the strongest opportunities for returning buyers, according to a new report released this week by the National Association of Realtors.
In its annual outlook, Housing Hot Spots for 2026: The Markets Poised for New Buyer Opportunities, NAR identified 10 metropolitan areas expected to outperform the nation next year across a range of economic, demographic, and housing indicators. Listed alphabetically, the markets 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.
To make the list, each metro area had to exceed the national average on at least five of 10 key measures, maintain a population above 250,000, and show clear 2026 buying opportunities for consumers and the real-estate agents who serve them.
"Lower mortgage rates and larger inventory will attract buyers back to the market in 2026," said Lawrence Yun, NAR's chief economist. "These hot-spot markets combine strong demand potential, improving affordability and, most importantly, a housing stock that aligns with the budgets of returning buyers."
A Turning Point for the National Market
NAR's national forecast calls for a broad-based recovery after several years of subdued activity:
- Existing-home sales: projected to rise 14%
- Home prices: expected to climb about 4%
- Mortgage rates: likely to trend toward 6%
- Job creation: roughly 1.3 million new positions anticipated
"After three years of flat home sales, a solid double-digit increase is expected in 2026," Yun said. "Higher inventory, modest gains in affordability, and more accommodative monetary policy from the Federal Reserve should help more Americans move forward with buying their next home."
How the Hot Spots Were Chosen
To rank the 2026 standouts, NAR evaluated how each market performs relative to the nation across 10 indicators:
- Share of millennial households
- Household income growth
- Job growth
- Sensitivity to lower mortgage rates
- Domestic migration as a share of population
- Share of for-sale homes with price cuts
- Listings-to-income alignment score (and year-over-year change)
- Mortgage-payment-to-rent ratio
- Growth in single-family building permits
- Growth in mortgage originations
NAR said the metros that secured a place on the list show the strongest alignment between local economic momentum, demographic demand and the price ranges today's buyers can realistically afford.
