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

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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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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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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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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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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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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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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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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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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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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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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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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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.