6 housing markets ready to boom in 2026 — and 6 ready to bust

Discover six metro areas primed for growth and six expected to weaken as affordability, climate risk, and more reshape the market

As 2026 approaches, the housing landscape in the U.S. appears poised for a meaningful shift. According to projections from Redfin, wage growth may finally begin to outpace home-price growth, a dynamic not seen since the aftermath of the financial crisis.

The result could be a modest easing in monthly payments, especially if mortgage rates fall into the low-6% range.

Certain metro areas look particularly well positioned. Regions offering a mix of affordability, stable economies, and good quality of life could see renewed demand from buyers seeking value and long-term stability.

At the same time, markets that surged during the pandemic may face cooling as buyers reconsider costly housing or climate and cost-of-living challenges.

Here are six markets that may be ready to surge, followed by six that could face a slowdown.

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Boom: NYC suburbs (Long Island, Hudson Valley, Northern NJ, Fairfield County)

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The suburbs surrounding New York City may heat up in 2026 as more workers return to offices and seek commuter-friendly, more affordable housing outside the city core. Redfin notes those suburbs combine convenience with relatively lower prices.

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Boom: Syracuse, New York

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Syracuse stands out as an affordable inland metro. Lower home prices, reasonable living costs, and access to jobs and amenities may attract buyers priced out of expensive coastal metros.

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Boom: Cleveland, Ohio

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Cleveland offers moderate home prices and a stable economic foundation. Redfin points out that combination could draw buyers seeking value and sustainability rather than high-cost markets.

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Boom: St. Louis, Missouri

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As a midwestern hub with affordable housing and potential job-market resilience, St. Louis may benefit from people relocating from pricey coastal areas.

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Boom: Minneapolis, Minnesota

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Minneapolis delivers urban amenities, reasonable housing costs, and a strong local economy. That balance, Redfin says, could appeal to buyers looking for quality of life without coastal premiums.

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Boom: Madison, Wisconsin

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Madison combines a stable economy with mid-sized city amenities and a lower cost of living. The city may attract buyers interested in long-term stability as national housing adjusts, according to the predictions.

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Cool: Nashville, Tennessee

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Nashville may cool in 2026 as pandemic-era demand from remote workers fades. Redfin suggests that buyers might shift toward more affordable or lower-risk markets.

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Cool: San Antonio, Texas

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San Antonio could soften as rising insurance costs and changing migration trends erode some of the post-pandemic momentum that drove its housing demand.

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Cool: Austin, Texas

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Austin, once a hot spot during the pandemic, may lose steam according to Redfin, if remote-work migration slows and affordability pressures intensify.

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Cool: Fort Lauderdale, Florida

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Fort Lauderdale’s market may cool, according to Redfin, due to climate risk, rising insurance costs, and shifting buyer preferences away from coastal living.

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Cool: West Palm Beach, Florida

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Like other coastal Florida markets, West Palm Beach could see reduced demand as affordability concerns and climate risks weigh more heavily on potential buyers, according to Redfin’s predictions.

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Cool: Miami, Florida

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Redfin says Miami faces headwinds in 2026 as people reconsider costly coastal real estate and growing climate-related risks push some buyers toward safer, more stable markets.