Strong Price Growth Expected in Midwest and Northeast Markets
While the national housing market is projected to see moderate price growth of approximately 2.2% in 2026, certain cities—particularly in the Midwest and Northeast—are positioned for significantly stronger appreciation.
According to recent market analysis from Realtor.com, a more balanced housing landscape is emerging as inventory levels improve nationwide. However, this moderation won’t be uniform across all markets.
The driving force behind stronger price performance in Midwest and Northeast cities is inventory scarcity. Unlike many Southern and Western markets where new construction has added substantial supply and put downward pressure on prices, these regions have seen limited housing development in recent years, creating tighter market conditions that continue to support price growth.
Markets Leading Price Appreciation
Cities expected to see the strongest gains include Toledo, Ohio (13.1%), Syracuse, New York (12.4%), and Scranton, Pennsylvania (10.9%). Other notable markets include Rochester, Hartford, Baltimore, and Milwaukee, with projected increases ranging from 7% to 10.3%.
Affordability Remains a Key Factor
Most of these high-growth markets offer home prices well below the national median of approximately $415,000. Toledo exemplifies this affordability advantage, with median prices around $199,900—significantly lower than Ohio’s statewide median of roughly $275,000.
The combination of constrained supply, sustained demand, and relative affordability positions these markets for continued strength as buyers seek value in areas where inventory remains limited.