Hartford, Connecticut, has emerged as the leading housing market in the United States for 2026, dethroning Buffalo, New York, which held the top spot for the past two years. According to Zillow’s annual forecast, the shift highlights significant changes in market dynamics driven by inventory shortages and competitive buyer behavior.
The inventory of homes in Hartford is currently 63% below pre-pandemic levels, marking the largest deficit among the fifty largest metropolitan areas in the country. This scarcity has led to heightened demand, with a remarkable 66% of homes in the area selling above their listed price last year. This figure surpasses that of any other major metropolitan market in the U.S. Additionally, only 16.5% of homes in Hartford experienced price reductions, indicating a robust demand.
Zillow’s chief economist, Mischa Fisher, emphasized the competitive landscape, stating that “injections of inventory aren’t likely to come from either existing owners or builders; buyers should be prepared for bidding wars and broken hearts.” The company predicts that this trend will continue, as Hartford’s home values increased by 4.6% last year, the fastest growth rate among major metros. Looking ahead, Zillow forecasts a slightly more tempered growth of 3.9% annually for 2026.
Buffalo, which was ranked as the hottest housing market in both 2024 and 2025, has dropped to the second position. Despite this change, the city continues to demonstrate strong market competitiveness, maintaining the highest competition score on Zillow’s market heat index. Sellers in Buffalo enjoyed a favorable negotiating position throughout the previous year, contributing to a vibrant market.
The New York metropolitan area, which encompasses parts of New Jersey and Pennsylvania, occupies the third spot in Zillow’s rankings. This region benefits from a positive home price forecast, strong employment figures, and the lowest share of listings with price reductions at just 13.5%.
As the housing market in Hartford continues to heat up, potential buyers must navigate a challenging environment. Fisher noted that “shoppers will need to tap all the resources they can muster in these fast-moving markets, from their team of experts to tech aids to financial assistance, but successful buyers will quickly gain equity.”
The changing landscape of the U.S. housing market reflects broader economic trends, with affordability challenges and fluctuating demand shaping the experiences of buyers and sellers alike. As cities like Hartford rise to prominence, the implications for homeowners and prospective buyers will be significant.
