The hottest housing market in America is in a downtrodden Northeast city that people have been fleeing for the last 75 years, according to a shocking new report.
Hartford, Connecticut, has seen a remarkable recovery — with Nutmeggers competing furiously for the surprisingly affordable homes that go up for sale, according to Zillow’s 2026 hot housing market report.
Typical home values in “The Insurance City” were $382,000 in October 2025.
Two-thirds of homes in Hartford sold above their asking price, and there were 63% fewer homes for sale than there were pre-pandemic, pushing up demand, according to Zillow.
Only 16.5% of Hartford listings saw price cuts in 2025, while home values grew by 4.3% in the same time and are forecast to grow 3.9% in 2026.
It’s one of several surprising cities with robust housing markets, where demand is far outstripping supply.
The second-hottest city is Buffalo, New York — where homes averaged $277,000 and 65% of sales closed over asking.
The New York City area clocked in at no. 3 — with nearly half of homes going for over asking, and home values rising 2.9% last year. The average sale price was $704,000.
Only 13.5% of listings saw price cuts in 2025 while New York metro home values are forecast to rise by 1.5% this year.
While Texas, Florida and the Carolinas have seen seen the fastest population growth, they’ve also been building houses. Much of the Northeast is still struggling with a desperate shortage of suitable homes, according to Zillow.
Each of the cities on Zillow’s list have far fewer homes on the market now than before the Covid pandemic,
Hartford has 63% fewer homes for sale, while New York’s available housing was about half what it was five years ago.
Hartford may be particularly surprising because it’s famously a hard-luck case. One-hundred and fifty years ago, it was labeled the richest city in America — with higher per capita wealth than New York or Boston thanks to the hugely successful insurance industry based there.
But the latter half of the 20th century was not kind to the Connecticut capital.
The population peaked in 1950; its current population of 122,000 is 50,000 residents less than it was 75 years ago.
Major insurers like Travelers, Aetna and Cigna shifted their corporate headquarters out of the city — with some moving 100 miles south to New York.
Of the remaining cities that make up the top 10 hottest housing markets in the US, three are in the Northeast, two are in California, one is in the South and one in the Midwest.
Here are the 10 most competitive housing markets in the US:
1. Hartford, CT
- Typical home value: $381,760
- 66% of Hartford homes sold above their asking price in 2025
- There are 63% fewer homes for sale than there were pre-pandemic
- Only 16.5% of Hartford listings had price cuts
- Hartford home values grew 4.3% in 2025
- Home values are forecast to rise by 3.9% in 2026
2. Buffalo, NY
- Typical home value: $277,499
- 65% of Buffalo homes sold above their asking price in 2025
- There are 39.1% fewer homes for sale than there were pre-pandemic
- Only 17% of listings had price cuts
- Buffalo home values grew 3.7% in 2025
- Home values are forecast to rise by 2.5% in 2026
3. New York, NY
- Typical home value: $704,284
- 49% of New York metro homes sold above their asking price in 2025
- There are 48% fewer homes for sale than there were pre-pandemic
- Only 13.5% of listings had price cuts
- New York metro home values grew 2.9% in 2025
- Home values are forecast to rise by 1.5% in 2026
4. Providence, RI
- Typical home value: $503,409
- 50% of Providence homes sold above their asking price in 2025
- There are 55% fewer homes for sale than there were pre-pandemic
- 20% of listings had price cuts
- Providence home values grew 2.5% in 2025
- Home values are forecast to rise by 3% in 2026
5. San Jose, CA
- Typical home value: $1.56 million
- 62% of San Jose homes sold above their asking price in 2025
- There are 27% fewer homes for sale than there were pre-pandemic
- Only 17% of listings had price cuts
- San Jose home values declined 2.1% in 2025
- Home values are forecast to rise by 1.2% in 2026
6. Philadelphia, PA
- Typical home value: $378,054
- 41% of Philadelphia homes sold above their asking price in 2025
- There are 39% fewer homes for sale than there were pre-pandemic
- Only 22% of listings had price cuts
- Philadelphia home values grew 3% in 2025
- Home values are forecast to rise by 1.7% in 2026
7. Boston, MA
- Typical home value: $717,711
- 51% of Boston homes sold above their asking price in 2025
- There are 30% fewer homes for sale than there were pre-pandemic
- 19% of listings had price cuts
- Boston home values grew 1.2% in 2025
- Home values are forecast to rise by 1.5% in 2026
8. Los Angeles, CA
- Typical home value: $941,869
- 42% of Los Angeles homes sold above their asking price in 2025
- There are 18.5% fewer homes for sale than there were pre-pandemic
- 21% of listings had price cuts
- Los Angeles home values declined 1.2% in 2025
- Home values are forecast to rise by 1.1% in 2026
9. Richmond, VA
- Typical home value: $383,275
- 40.5% of New York metro homes sold above their asking price in 2025
- There are 34% fewer homes for sale than there were pre-pandemic
- 24% of listings had price cuts
- Home values grew 1.3% in 2025
- Home values are forecast to rise by 2.1% in 2026
10. Milwaukee, WI
- Typical home value: $369,303
- 50% of Milwaukee homes sold above their asking price in 2025
- There are 26% fewer homes for sale than there were pre-pandemic
- Only 17% of listings had price cuts
- Milwaukee home values grew 3.7% in 2025
- Home values are forecast to rise by 2.1% in 2026
