This capital city is now the hottest housing market in the US for 2026

Move over Buffalo, there's a new top housing market in town.Hartford, Connecticut, dethroned the northwest New York city as Zillow's top housing market for the year. Buffalo was No. 1 on Zillow's annual hottest markets forecast for back-to-back years. Hartford sits at the top partly because inventory is 63% below pre-pandemic levels, which is the largest deficit among the 50 largest U.S. metros by population. Well over half of all homes in the area, 66%, also sold above list price in Hartford last year, topping all other major metros. The area also had the second-lowest share of homes with a price cut, at just 16.5%.To make matters worse, "Injections of inventory aren't likely to come from either existing owners or builders; buyers should be prepared for bidding wars and broken hearts," according to Zillow.AFFIRM TO OFFER BUY NOW, PAY LATER OPTION FOR RENT PAYMENTSZillow's 2025 predictions list, which calls out a nation-leading appreciation forecast, ranked Hartford within the top five metros. This proved accurate, as home values grew faster in Hartford than in any other major metro last year, up 4.6%, according to the report.Zillow projected that this climb will continue in the new year as the area is forecast to lead price growth yet again in 2026, albeit at a slightly more relaxed pace of 3.9% annually.  'BUY NOW, PAY LATER' SERVICES ARE DANGEROUS TRAP FOR YOUNG AMERICANS, FINANCIAL EXPERT WARNSZillow chief economist Mischa Fisher said competition among buyers will be stiff, meaning sellers will have the upper hand in this year's hottest markets like Hartford. "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," Fisher said. HOUSING EXPERT WARNS PRE-PANDEMIC AFFORDABILITY LEVELS MAY NEVER RETURN IN AMERICABuffalo, which ranked as the hottest housing market in both 2024 and 2025, is in the No. 2 spot on the latest list. Sellers maintained a strong negotiating advantage there throughout last year, giving the metro the highest competition score on Zillow’s market heat index among major cities.The New York metro area, which includes parts of New Jersey and Pennsylvania, isn't far behind.GET FOX BUSINESS ON THE GO BY CLICKING HEREIt ranks third on the list due to a positive home price forecast, strong employment and the lowest share of listings, with a price cut among major metros at just 13.5%.Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business