Top 10 homebuying hot spots for 2026 as rates expected to drop

With mortgage rates expected to drift toward 6% in the coming year, 10 U.S. markets could see a major boost as buyers regain purchasing power.

The National Association of Realtors (NAR) recently looked at 10 key indicators, including how lower rates affect buying power, how well home prices match local incomes, migration trends and job growth to find where “home sales will likely be liveliest in the coming year.”

To make the list, each area needed a population over 250,000, stronger performance than the U.S. on at least five indicators and clear opportunities for buyers and Realtors, according to the report.

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The top 10 home buying hot spots include:

Charleston, South Carolina

The French Quarter in Charleston, S.C. (iStock)

Charleston’s inventory is rising in the $200,000–$350,000 range, and more than 20,000 additional households would qualify for a median-priced home with rates at 6%.  

Millennials make up 36% of local households, and the area has strong job and income growth, according to NAR.

“Charleston has a large pool of renters who are just at the edge of affordability,” the report noted. “A shift from 7% to 6% significantly expands the number of local households who qualify for the median home.”

Charlotte, North Carolina

Over 52,000 more households would qualify for a median-priced home at a 6% mortgage rate. The metro has a strong migration inflow, income gains, job growth and high millennial concentration.

“Charlotte’s winning formula in 2026 is simple: young buyers, strong jobs, and more listings where people need them,” the report noted.

Columbus, Ohio

A view of Columbus, Ohio. (iStock)

More than 41,000 additional households would qualify at a 6% mortgage rate. Millennials make up 37.5% of the area, incomes are up compared to the prior year and job growth is strong, according to the report.

“Columbus continues to outperform expectations as one of the Midwest’s most resilient and stable housing markets. Income growth remains stronger than the U.S. average, and investments — including logistics expansions — are bringing high-quality jobs that support long-term housing demand,” NAR noted.

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Indianapolis, Indiana

Indianapolis is one of the “most balanced and opportunity-rich markets heading into 2026,” according to NAR.

More than 42,700 additional households would qualify at a 6% rate, and the area has a strong millennial presence, solid job gains and a strong match between home prices and local incomes.

Jacksonville, Florida

“Jacksonville is one of the Florida markets where both affordability and inventory are improving at the same time,” NAR noted.

More than 39,700 additional households qualify for a median-priced home at a 6% rate….