Zillow has named Hartford, CT as the city most likely to be the nation’s hottest housing market this year.
Hartford achieved this triumph based on its fast-moving listings, strong price growth and low chances of price cuts. The metro has the fewest homes on the market compared to the pre-pandemic years; its inventory is down 63% compared to 2018-2019 and more than two-thirds of homes sold traded above the listing price in 2025. The typical home was on the market for about one week.
With this achievement, Hartford jumped four places to dethrone Buffalo, the winner for the previous two years. Others in the top five were New York, Providence and San Jose, followed by Philadelphia, Boston, Los Angeles, Richmond and Milwaukee.
Sellers in Buffalo had the strongest advantage in negotiations, while the share of New York listings with price cuts was just 13.5% —
the smallest in the nation.
Each of the five hottest markets can expect above-average price appreciation. In Hartford, 4% growth is anticipated — houses have typically been on the market for about a week, while Buffalo can expect 2.5% growth.
These forecasts contrast with the overall state of the market, which saw home values flatten in 2025; they dropped in half of all major markets.
That could change this year. With mortgage rates at 6%, Zillow predicts home prices will rise in most markets, it follows (37) this year. There was only a slight increase in the number of new listings, but overall inventory levels dropped as homes stayed on the market longer. Nationwide, there was a 17% deficit in homes for sale.
Markets with already low inventory are likely to see “outsized demand” in the new year. Markets with the fewest listings and fastest sales were Hartford, St. Louis and Cincinnati. New York is the least likely to see price cuts in 2026. Buyers in hot markets may expect bidding wars amid tight competition.
“Nationwide, Zillow forecasts relatively slow and steady growth for both home values and sales in 2026. Affordability will remain a challenge — whether that improves for potential buyers depends on location and unpredictable mortgage rates. Fortunately for buyers, inventory should continue to recover from a deep pandemic-era deficit,” Zillow stated.
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