The 2026 Housing Shift: Why the Northeast is Booming and Florida is Cooling



If you’re looking for the heart of the housing market in 2026, you’ll need to pack a coat. 
According to Zillow’s latest annual forecast, the "sun and sand" dominance of years past has officially shifted. For the first time in recent memory, Florida has failed to land a single city in the top ten hottest markets.

While the Sunshine State grapples with rising insurance costs and stabilizing inventory, the Northeast has become the nation’s primary battleground for real estate.

Hartford Takes the Crown


The new "hottest market" in America is Hartford, Connecticut. Moving up from the #4 spot last year, Hartford is bracing for a year of "bidding wars and broken hearts." 

The numbers tell a clear story:

66.4% of homes sold over asking price last year.

Inventory is a staggering 63% below pre-pandemic levels.

Home values are projected to grow by 3.9% in 2026, the fastest pace in the nation.

The Rise of the Rust Belt and the Northeast

Hartford isn't an outlier; it’s part of a broader trend. Previous winner Buffalo, NY remains a powerhouse at #2, followed by the New York City metro area at #3.

The common thread among these leaders—including Providence, Philadelphia, and Boston—is a chronic lack of supply. In these markets, building has lagged for years, meaning sellers still firmly hold the upper hand.



What Happened to Florida?

For the last several years, Florida cities like Tampa, Miami, and Jacksonville dominated these lists. However, the 2026 rankings show a notable absence of the Southeast.

While Florida remains a popular destination, the combination of surging home prices over the last three years and the "flat spot" in values seen in 2025 has allowed more affordable (or inventory-starved) Northern markets to overtake them. Affordability and job growth per new home permitted are now the primary drivers of "heat," and currently, the Northeast is where the pressure is highest.

Advice for 2026 Buyers

Whether you are looking in a hot market like Hartford or a pricey coastal hub like Los Angeles (#8), Zillow Chief Economist Mischa Fisher notes that "successful buyers will quickly gain equity," but they must be prepared.

Prioritize Financial Prep: Use on-time rent payments to boost your credit score and get pre-approved early.

Leverage Tech: Use digital touring tools to filter through listings quickly so you can strike the moment a house hits the market.

Watch the Rates: With mortgage rates expected to drift toward 6%, more buyers will enter the fray, increasing competition even further.

Are you planning a move this year? I can help you analyze the specific inventory levels in your target zip code—would you like me to look up the latest trends for a specific city?​

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