Hartford, Connecticut, tops Zillow’s list of hottest real estate markets this year
The ‘Big Money Show’ panel discusses how the housing market is being manipulated to give young people a piece of the American dream.
Move over to Buffalo, there’s a new high-rise housing market in town.
Hartford, Connecticut, dethroned the northwestern New York city as Zillow’s top real estate market of the year. Buffalo has been No. 1 in Zillow’s annual hot markets forecast for consecutive years.
Hartford sits at the top in part because inventory is 63% below pre-pandemic levels, the largest shortage among the 50 largest US metros by population. More than half of all homes in the area, 66%, also sold above list price in Hartford last year, outpacing all other major metros. The area also had the second lowest share of homes with price reductions, at just 16.5%.
Hartford, Connecticut, edged out Buffalo, New York, for the No. 1 spot. 1 on Zillow’s annual list of the hottest real estate markets in 2026. (Patrick Sikes / The Connecticut Post via Getty Images)
To make matters worse, “Inventory injections are unlikely to come from existing owners or builders; buyers should be prepared for bidding wars and broken hearts,” according to Zillow.
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Zillow’s 2025 forecast list, which it calls the nation’s leading valuation forecaster, ranks Hartford among the five largest municipalities. This proved to be accurate, as home prices grew faster in Hartford than any other major municipality last year, up 4.6%, according to the report.
Zillow predicted that this increase will continue into the new year as the area is predicted to grow in value again in 2026, although it will be at a slower rate of 3.9% annually.
Hartford ranks high in part because inventory is 63% below pre-pandemic levels. (Brad Horrigan/Hartford Courant/Tribune News Service via Getty Images)
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Zillow economist Mischa Fisher said competition among buyers will be tough, which means sellers will be stronger in this year’s hottest markets like Hartford.
“Buyers will need to take advantage of all the resources they can get in these fast-moving markets, from their professional team to technical services to financial assistance, but successful buyers will find equity quickly,” said Fisher.
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Buffalo, ranked as the hottest housing market for 2024 and 2025, is No. 2 in the latest list. Sellers maintained a strong negotiating advantage there throughout the past year, giving the metro the highest competitive score in Zillow’s market heat index among major cities.
Sixty-six percent of homes sold above list price in Hartford last year, outpacing all other major metros. (John Woike/Tribune News Service via Getty Images via Getty Images)
The New York metropolitan area, which includes parts of New Jersey and Pennsylvania, is not far away.
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It ranked third on the list due to its favorable home price forecast, strong employment and low listing share, with a 13.5% price reduction among major municipalities.
