To get paid, trade the palm trees for parkas. That’s the resounding message emanating from Realtor.com’s top housing markets for 2026 forecast.
The number crunchers at the listings site analyzed the data and concluded that the top-performing real estate markets next year will be clustered in the Northeast, in smaller, generally affordable metros, where the drop in temperature—compared to the formerly red-hot Sunbelt—is matched only by the comparative drop in prices.
Cities such as Hartford, Connecticut (expected 17% price growth); Rochester, New York (15.5%); and Worcester, Massachusetts (15%), as well as traditionally affordable Midwestern cities such as Toledo and Pittsburgh, are projected to be front-runners in both home sales and price growth, as buyers chase affordable “refuge” markets, where their paychecks go a lot further than conventional coastal centers.
The Upside for Landlords
For prospective landlords looking to kick-start investing careers or add to their portfolios, these cities are ideal because of their relative affordability compared to rental income. In Rochester, for example, the average monthly rent as of December 2025, according to Apartments.com, is $1,302. Sister site Homes.com shows several cash-positive rentals, such as this three-bedroom home at 6 Custer Street, listed for $120,000 with an estimated monthly payment of $923 and rented to Section 8 tenants for $1,400/month.
This aligns with a new report from Rentometer, highlighting the cities with the highest yields for landlords—showing 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 geographic pattern emerges. The majority of these high-return…