Where Smart Money is Moving in 2026
Redfin just released its housing market predictions for next year, and if you’re thinking about buying, investing, or relocating, you’ll want to pay attention. The story here isn’t about dramatic crashes or sudden windfalls—it’s about a shift that’s already underway.
The Markets Getting Hot
According to Redfin’s December report, these areas are poised to see the most action in 2026:
- NYC suburbs (Long Island, Hudson Valley, Northern New Jersey, and Fairfield County, CT)
- Syracuse, New York
- Cleveland, Ohio
- St. Louis, Missouri
- Minneapolis, Minnesota
- Madison, Wisconsin
Not exactly the usual suspects, right? That’s the point.
Three Forces Reshaping the Map
Look closer and you’ll see why people are heading to these places.
- First, there’s the commuter crowd. Professionals who need access to New York but can’t stomach the prices are fanning out into the suburbs. It’s not rocket science—same career opportunities, more space, better value.
- Second, climate is becoming a real factor in people’s decisions. Buyers from fire-prone California and flood-vulnerable Florida are looking at the Midwest and Great Lakes with fresh eyes. These aren’t just cheaper markets—they’re more stable in ways that matter long-term.
- Third, recent grads are skipping the coastal grind entirely. They’re landing in smaller cities where rent won’t consume half their paycheck and where they can actually start building equity early in their careers.
What Redfin Calls the “Great Housing Reset”
Here’s what caught my attention: Redfin says we’re entering a multi-year period they’re calling the Great Housing Reset. But don’t expect some sudden correction. This is more like a slow thaw—home sales picking up gradually, prices normalizing over time, and affordability inching back toward reasonable.
The Federal Housing Finance Agency backs this up. Their August numbers showed home prices up 2.9% year-over-year, with the strongest gains in New York, Connecticut, New Jersey, Mississippi, and Illinois. And get this: the market has posted annual gains every single quarter since 2012.
Why This Matters
If you’ve been sitting on the sidelines waiting for the “right time,” 2026 might be it—but probably not in the places you’ve been watching. The big coastal markets will keep doing their thing, but the real opportunity seems to be in these under-the-radar cities where the fundamentals actually make sense.
This isn’t about timing the market perfectly. It’s about recognizing when conditions are aligning in your favor and acting on it. The buyers who do well in 2026 won’t be the ones chasing headlines—they’ll be the ones who saw the shift coming and positioned themselves accordingly.