Zillow Forecast: Best and Worst Housing Markets of 2026
As the real estate industry continues to experience dynamic shifts, market analysts and prospective homeowners eagerly await Zillow’s forecast for the best and worst housing markets of 2026. Known for its comprehensive data analysis and forward-looking insights, Zillow’s predictions offer a glimpse into the future of property investments across the United States. This article dives into the anticipated frontrunners and laggards in the housing market three years from now, based on emerging trends and current data.
The Best Housing Markets of 2026
Zillow’s latest forecast identifies several key markets expected to thrive in 2026, characterized by robust economic growth, favorable demographics, and an influx of both domestic and international investments:
Austin, Texas
Austin continues to attract tech giants and start-ups alike, fostering a vibrant economy and steady job growth. The city’s appeal to millennials and the influx of tech talent make it a hotbed for real estate investment. With its blend of cultural attractions, tech-driven economy, and relatively affordable housing compared to other tech hubs, Austin’s housing market is poised for significant appreciation.Raleigh, North Carolina
Boasting a strong educational infrastructure thanks to institutions like North Carolina State University and the surrounding Research Triangle, Raleigh is anticipated to be a standout performer by 2026. The city’s ability to attract young professionals and families in search of quality life and job prospects positions Raleigh as a burgeoning housing market.Nashville, Tennessee
Nashville is quickly becoming more than just the heart of country music. With a thriving entertainment industry, growing tech presence, and a favorable tax environment, the city is expected to see continued housing demand. Its appeal to both investors and young homebuyers makes it a promising market for the upcoming years.Phoenix, Arizona
Attracting retirees and remote workers with its warm climate and affordable cost of living, Phoenix’s growth trajectory is predicted to remain strong. The city’s development in sustainable living and renewable energy also adds to its attractiveness as a forward-thinking market.Boise, Idaho
Although a surprise to some, Boise’s real estate market has been on a steady upward trend. With its high quality of life, burgeoning tech scene, and outdoor recreational activities, Boise is anticipated to remain an attractive market for both first-time buyers and seasoned investors.
The Worst Housing Markets of 2026
Conversely, Zillow’s forecast identifies several markets facing challenges that may suppress growth or lead to downturns:
San Francisco, California
The ongoing exodus due to high living costs and the shift to remote work has started to strip away San Francisco’s once-booming real estate market. Coupled with regulatory hurdles and affordability issues, the city could see stagnation or even depreciation in housing prices by 2026.New York, New York
Although it might seem perennial in its allure, New York City presents challenges like high taxes, declining population growth, and a sluggish recovery post-pandemic. These factors could dampen the housing demand despite the city’s global appeal.Detroit, Michigan
While efforts are underway to rejuvenate Detroit, economic volatility and a declining population remain significant hurdles. These long-standing issues could hinder any substantial rebound in the housing market by 2026.Honolulu, Hawaii
Despite its idyllic setting, Honolulu faces challenges with overreliance on tourism, high living expenses, and limited land availability. These complicating factors can slow real estate growth, making it less attractive for long-term investment.Chicago, Illinois
Economic challenges compounded by high taxes and crime rates pose risks to Chicago’s housing market. While it remains a vital city, these issues may suppress housing price growth over the next few years.
Conclusion
As 2026 approaches, understanding Zillow’s forecast for the best and worst housing markets offers valuable insights into future real estate trends. Potential buyers and investors should consider both emerging growth areas and markets facing socio-economic challenges. Whether seeking lucrative investments or planning relocations, being informed about the projected housing dynamics can lead to more strategic and sound decisions in the ever-evolving real estate landscape.