The last several years have been tough for homebuyers and sellers alike, with mortgage rates and housing prices in flux. But according to real estate marketplace Zillow, 2026 is looking up, with buyers seeing more availability and sellers seeing the rewards of price stability and more consistent demand.
In January, Zillow released a report on which of the 50 largest U.S. metros will be the most buyer-friendly housing markets in 2026. To rank the markets, Zillow’s index incorporated three themes:
- Places where home values are currently dipping, but Zillow’s home value forecasting tool shows expected home value growth in the coming year.
- The share of income a median earner would pay to buy a typical home in their metro area, assuming a 20% down payment.
- Places where buyers have more negotiating leverage, according to a Zillow tool that measure’s buyer competition based on factors like days on the market and the share of listings with a price cut.
One thing the top markets have in common: They are all located in the Midwest and the Sun Belt, Kara Ng, a senior economist at Zillow, tells CNBC Make It. The Sun Belt includes states across the southern U.S., such as Florida, Texas, California, Arizona, Georgia and North Carolina.
“A huge component of buyer friendliness is affordability,” Ng says. “[The Midwest] was affordable before the pandemic and it is affordable after the pandemic.”
Although prices rose in the Sun Belt during the pandemic because the region is friendly to developers, builders have since come in and created more inventory to accommodate the demand, Ng says.
Take Florida, for example. Ng says since demand for Florida rose so much during the pandemic, prices went up, but there has been more building in some regions since, easing competition.
Between March 2020 and June 2022, median listing prices in Florida rose 46% to a high of $493,500, according to Realtor.com data. At the time, demand was very high and inventory was low. As of January 2026, the median listing price in Florida is down to $425,000, per Realtor.com.
“If you want to take another look at living in Florida to fulfill your 2021 dreams, this is the time,” Ng says.
Indianapolis ranked as the No. 1 buyer-friendly market
Indianapolis topped Zillow’s list of the best markets for homebuyers this year. As of December, the average home value is $283,040, and the share of median household income needed for an average mortgage payment is 26.9%, according to Zillow. It has an estimated annual home value change of 2.9%.
“We expect home values to appreciate in the future. Buyers face less competition for each home in Indianapolis, which gives them more time to make decisions and more time to make the right decision for them,” Ng says.
Indianapolis, Indiana
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Indianapolis is the capital of Indiana and offers a cost of living 10% lower than the national average, according to PayScale. Compared with New York City, the cost of living in Indianapolis is 62.4% lower and housing is 85.2% lower, PayScale finds.
The city is known as the Racing Capital of the World because it hosts the Indy 500 Festival and is home to the famous Indianapolis Motor Speedway.
Zillow’s most buyer-friendly markets of 2026
- Indianapolis, Ind.
- Atlanta, Ga.
- Charlotte, N.C.
- Jacksonville, Fla.
- Oklahoma City, Okla.
- Memphis, Tenn.
- Detroit, Mich.
- Miami, Fla.
- Tampa, Fla.
- Pittsburgh, Pa.
Atlanta ranked as the No. 2 most buyer-friendly city, with an average home value of $374,117, according to Zillow. The share of median household income needed for an average mortgage payment is 30.5%. It has an estimated annual home value change of 1.9%.
“In Atlanta, new construction has given buyers more options and has eased the competition for each home. Atlanta benefits from strong population growth and a healthy job market, which supports future home value appreciation,” Ng says.
Atlanta, Georgia
Andrey Denisyuk | Moment | Getty Images
Atlanta is the capital and most populous city of the state of Georgia. It is home to the Georgia Aquarium and the Centennial Olympic Park. The city played an important role in the civil rights movement and is home to the Martin Luther King Jr. National Historic Park.
The city’s cost of living is 5% lower than the national average, according to PayScale. Housing expenses are 17% lower than the national average, while utility prices are 2% higher, per PayScale.
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