#United States #Zillow #Buffalo #Hartford

Hartford Surpasses Buffalo as Zillow's Hottest Market for 2026

In an eye-catching turn of events, Hartford, Connecticut, has claimed the top spot in Zillow's forecast for the hottest housing market in 2026, overtaking Buffalo, which led the ranking in the previous two years. Zillow's annual analysis highlights the intensifying competition among buyers mainly in the Northeast and parts of California, where inventory levels have not kept pace with demand.

The Market Landscape

Two main challenges are affecting these regions: a lack of available homes and burgeoning buyer interest, creating a recipe for increased home prices and rapid sales. Zillow's data reflects that the New York metropolitan area ranks third in this year’s forecast, followed closely by Providence, Rhode Island, and San Jose, California. Hartford, in particular, stands out with a staggering deficit in available homes, sitting at 63% below pre-pandemic levels, making it the most severe inventory shortfall among the top 50 most populous U.S. metros.

In 2025, Hartford witnessed over 66% of homes selling above their listed price, the highest rate among major markets. Given these trends, Zillow anticipates continued price rises in the coming year. According to Mischa Fisher, Zillow's chief economist, “Buyers will need all the resources available—financial aids, tech tools, and expert guidance—to navigate these fast-paced markets successfully. Finding affordable options will depend heavily on the specific locations they target.”

Analysis of Key Factors

To assess the hottest markets, Zillow evaluated a combination of home price growth, market competition data, and job growth per new housing permit. Hartford ranked fourth in 2025 on Zillow’s prediction list, a testament to its impressive near-term appreciation forecast. The area saw home values rise 4.6% last year, with predictions indicating this growth will moderate but continue in 2026 at about 3.9% annually.

Hartford's tight market dynamics are further emphasized by the fact that, in 2025, only 16.5% of homes underwent price reductions, reinforcing the urgency for buyers in the current landscape where bidding wars are becoming the norm. The momentum enjoyed by 2025 sellers is evident as buyers scramble for the limited properties available, driving prices steadily upward.

Buffalo, while taking second place in this year’s rankings, previously dominated the market heat index due to its strong seller's advantage throughout 2025. The latest figures show a moderate home value growth of 2.5% in Buffalo, suggesting that while competition remains valid, it has tapered in comparison to Hartford’s meteoric rise.

New York Metro Area's Competitive Edge

The New York metro area emerged third this year, facilitated by an optimistic home price outlook, robust job growth, and a mere 13.5% share of listings experiencing price cuts. Analysts from StreetEasy project a more dynamic market this year, particularly within New York City’s boroughs, which might experience increased inventory.

National Market Outlook

As for the national housing market, Zillow forecasts a gradual recovery of home values following a flat year in 2025, predicting a modest increase of 1.7%. Mortgage rates, which are anticipated to ease towards the 6% mark, could provide additional relief for buyers and renters alike.

Strategic Tips for Buyers in Hot Markets

Preparing for a competitive market like Hartford requires strategic planning:

• - Financial Readiness: Clear financial records and timely rent payments will enhance credit scores, making buyers more appealing to sellers.
• - Effective Shopping: Leveraging digital tools to tour properties quickly can help narrow options effectively. Zillow's suite of offerings, including BuyAbility, can track mortgage rates and alert users to price changes, enhancing budget management.

The 2026 housing market landscape will present both opportunities and challenges, especially in highly competitive regions. Buyers are encouraged to utilize all available resources and approaches to secure their dream homes amidst tightening inventory conditions.