Northeast and Midwest ‘refuge markets’ to lead housing growth in 2026

In 2026, affordable metropolitan areas in the Northeast and Midwest, such as Hartford, Rochester, and Worcester, are expected to outperform the Sun Belt in home sales and price growth. These "refuge markets" attract buyers priced out of major coastal cities, offering lower median prices ($384,000) and smaller mortgage payment increases. Despite strong demand, inventory remains low, driving prices up by 16.3%. Out-of-state interest from expensive hubs is also rising.