Midwest and Sun Belt stand out on affordability
Home shoppers who spent the past few years losing out in bidding wars finally see the balance tilt in their favor in a handful of big metros in 2026.
A new Zillow analysis of the 50 largest US markets put Indianapolis, Atlanta and Charlotte at the top of a list of most buyer‑friendly cities, where price growth cools, competition eases and typical payments look more manageable.
Midwest and Sun Belt stand out on affordability
Zillow’s ranking leaned on three signals: slower home value growth today with modest appreciation forecast, the share of income a median earner would devote to a mortgage on a typical home, and a gauge of local competition from its Market Heat Index.
In the top 10 – Indianapolis, Atlanta, Charlotte, Jacksonville, Oklahoma City, Memphis, Detroit, Miami, Tampa and Pittsburgh – buyers generally face more inventory, more time and, in five of those metros, payments below 30% of median income, assuming a 20% down payment.
“Home shoppers have room to breathe in these buyer‑friendly markets. Lower competition gives buyers more time to decide and wiggle room to negotiate, adding up to a less stressful shopping experience,” said Orphe Divounguy, senior economist at Zillow.
“Cooling prices today, paired with expected growth ahead, make for a good entry point for those who have been waiting for the right moment. For sellers, pricing strategically from the start becomes that much more important when buyers hold the power.”
In earlier research on the broader outlook, Zillow’s economists already described 2026 as a year when the market finally settled onto steadier footing, with modest price gains and slightly higher sales rather than another boom.
Buyer havens contrast with hottest seller markets
The buyer‑friendly list also underscored how sharply conditions diverged across the country.
Earlier this month, Zillow named Hartford its hottest market for 2026, ahead of Buffalo and the New York metro, where inventory remain deeply constrained and most homes sold at or above asking price. In those metros, the company said, price cuts should remain rare and listings should continue to move quickly, giving sellers the clear upper hand.
“In today’s market, affordability was all‑important, but any improvements in 2026 would depend on location,” Zillow chief economist Mischa Fisher said in a recent outlook.
What it meant for lenders and brokers
Zillow’s fall data already flagged Indianapolis, Jacksonville and Miami among metros where buyer leverage improved as new construction added supply and buyers’ markets more than doubled.
In that context, the new buyer‑friendly ranking reinforces a practical message for originators and real estate partners in these cities: borrowers still need to be well‑qualified and fast, but they could negotiate harder on price, concessions and rate buydowns than in the Northeast or Bay Area.
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