The most competitive markets in the country are largely in the east, driven by constrained inventory and home-price growth.

Hartford, Connecticut topped Zillow's list of the hottest housing markets in 2026, edging out Buffalo, New York, which placed first in each of the last two years. The 50 most populated metros were ranked based on home-value appreciation, how quickly homes sold, how often sellers cut prices, the share of homes that sold for over list price and job growth per new home permitted.

"Competition among buyers will be stiff and sellers will have the upper hand in this year's hottest markets. 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," Zillow Chief Economist Mischa Fisher said in a press release.

"In today's market, affordability is all-important, but any improvements in 2026 will depend on location," Fischer added.

Hartford slotted in at fourth in last year's predictions due to a nation-leading appreciation forecast. It proved true, as home values grew 4.3% in Hartford, more than any other major metro. Zillow expects more of the same in 2026, as it forecasted the city to lead the country, but at a slower pace of 3.9%.

Bidding wars were common in Hartford, as 66.4% of homes were sold over asking price, the most in the nation, and only 16.5% of homes saw a price cut, the second-lowest mark. Hartford also posted the largest decrease in inventory since 2018-2019 of the top 10 markets at 63%. 

Inventory is not expected to increase this year from either existing owners or builders, and buyers should be prepared for bidding wars, Zillow said.

Buffalo again ranked near the top of the list with the lowest Zillow Home Value Index among the top 10 at $277,499, the next closest was Milwaukee at $369,303. Buffalo also posted the second-highest price appreciation last year at 3.7%.

New York placed third on the list after ranking 41st last year. A positive home price forecast, 1.5%, strong employment and the lowest share of listings with a price cut among major metros at just 13.5% all contributed to its jump. 

Los Angeles and San Jose, California, also climbed the list significantly from last year. Limited inventory is common among the top Northeast and coastal California markets, spurring fast sales and home-price growth last year, Zillow found. San Jose led the top 10 with a Zillow Home Value Index of $1,558,466.

Overall, Zillow's 2026 predictions call for home values to rise by 1.7%. Mortgage rates are expected to continue to drop slowly toward 6%, which should boost home sales, and affordability should get better as well, Zillow said.