To get paid, trade the palm trees for parkas. That is the resounding message that goes out Realtor.com’s Top Housing Markets for 2026 Predicted.
The number crunchers on the list site analyzed the data and concluded that the best performing real estate markets will do next year are clustered in the Northeast, in smaller, generally affordable metro areas, where the drop in temperatures – compared to the previously scorching Sunbelt – is matched only by the relative price drop.
Cities like Hartford, Connecticut (expected price growth of 17%); Rochester, New York (15.5%); and Worcester, Massachusetts (15%), as well as traditionally affordable Midwestern cities such as Toledo and Pittsburgh, are expected to be leaders in both home sales and price growth as buyers seek affordable “havens” where their wages extend far beyond conventional coastal centers.
The advantage for landlords
For potential landlords looking to boost their investment career or expand their portfolio, these cities are ideal due to their relative affordability compared to rental income. In Rochester, for example, the average monthly rent as of December 2025 is according to Apartments.comamounts to $1,302. Sister site Homes.com shows several cash-positive rental properties, such as this three-bedroom house Custerstraat 6listed for $120,000 with an estimated monthly payment of $923 and rented to Section 8 renters for $1,400/month.
This corresponds to one new report of Rentometer, highlighting the cities with the highest returns for landlords –to show many of the same names in both. The report states:
“When we look at the cities with gross rental yields of 10% or higher, a clear geographical pattern emerges. The majority of these markets have high yields are clustered around the Great Lakes region – including cities in Michigan, Ohio, Indiana and New York State – where home prices remain relatively affordable compared to national averages, but rent levels have remained stable.”
Slow and steady wins the race
Unlike the post-pandemic housing gold rush, in which prices skyrocketed as interest rates fell, and subsequent years when high interest rates froze buying, the Realtor.com report shows that affordability and strong demand don’t necessarily mean rampant price growth in all the top cities (though the top three enjoy estimated valuations in the mid-high teens), but rather a more modest valuation that supports measured homebuying and investing. This is supported Through Fortune And Newsweekhighlighting that the Rust Belt is eclipsing the Sunbelt as the most desirable place for buyers to empty their money belts.
“Rust Belt cities like Cleveland, Hartford, Albany and Chicago are all still appreciating and in tight supply. Meanwhile, Sun Belt cities in Florida, Texas and Arizona are now in decline, at record numbers in the past decade,” Nick Gerli, CEO and founder of real estate analytics platform Reventure App, wrote in a post to X on December 9.
Lower costs mean lower risk
Lower prices in the Northeast and Midwest mean that the “lock-in” effect of sacrificing pre-2022 low interest rates for today’s higher rates is not as pronounced as in other, more expensive regions. This is also a plus for investors concerned about the potential downside of the cost of vacant rental properties.
according to broker.com That 2026’s major markets ‘offer more value than nearby, expensive hubs’, while tight inventories – Hartford is at 74% and Worcester still 43% below pre-pandemic levels – are putting upward pressure on prices, meaning smaller landlords can enjoy more certainty and less speculation about the likelihood of valuation.
Another interesting statistic from the report was that in the third quarter of 2025, 40% of ad views for the top 10 cities came from out-of-state people, often from more expensive cities like New York, Boston and Washington, DC, highlighting the need for affordability.
Strategic steps that landlords can make now
Target spillover neighborhoods early
Projected valuationlow house prices and great potential cash flow do not guarantee an effortless investment.
Take Pittsburgh, the largest metro in the Realtor.com rankings. With inventory currently more than 31% below pre-pandemic levels, competition for rental properties is fierce. The Pittsburgh Post-Gazette reports bidding wars remain common and often attract eight to ten bids per home. What seems beneficial on paper may not translate into reality. That is why consulting local experts is essential for a thorough approach carefulness.
Accept the cash flow, don’t hype
Cities like BuffaloNew York, which was Zillow’s most popular market two years in a rowbeen attract investors en masse. It means that competition is likely to be fierce.
Stress test deals for cash flow against conservative numbers instead of Realtor.com or wholesale hype numbers. Finding blocks of housing that align with the radar, rather than sending out media-induced sirens of desirability, could make for better cash flow investments and long-term appreciation.
Get financing from lenders who will get your money vision
Just because everyone wants to lend you money doesn’t mean you should borrow from them. Often, lenders who actively promote themselves in the real estate sector are glorified real estate agents. Yes, they have access to a wide variety of conventional and non-conventional lenders, but you pay a nice price in points for their help. First, research the lending programs of local community banks and credit unions.
Cold weather markets are tough on a home; keep that in mind innovation
Chances are you’ll need to make some upgrades if you buy a home in a cold-weather market. These areas are tough for a At home. It’s worth getting ahead of problems by raising extra money for the roof, gutters and parking lot upgrades. If there’s an opportunity to replace copper with PEX and install durable vinyl plank flooring, take it.
Final thoughts
Investors from major coastal cities tend to eyeball emerging markets, such as those in the Northeast and Midwest A giddy enthusiasm because the prices are so low compared to where they live. This is a big mistake. Even if you buy with cash and don’t take on too much debt, many of these areas are still cluttered and burdensome, with a tenant pool that doesn’t match the media hype surrounding the new coffee shops and brunch spots mentioned in online articles.
Many neighborhoods also have to do that be evaluated from street to street. Don’t waste the money because a house is cheap, or it could be more headache than it’s worth. Seek advice from local experts who are not trying to make a quick buck, but rather see the long-term view of keeping you as a repeat buyer. Screen management companies are diligent about asking for it references, and make sure they do the same with potential tenants.
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