Zillow Forecasts Increased Affordability in Major US Cities by 2026
A Zillow analysis predicts that 20 out of 50 largest metropolitan areas in the U.S. will become more affordable by 2026, offering a positive outlook for future homebuyers.
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20 big cities that will become affordable in 2026, according to Zillow
Pittsburgh, Pennsylvania. Sean Pavone/Shutterstock A Zillow analysis forecasts 20 out of the 50 largest metros will become more affordable in 2026. The Midwest has the most entries and remains a firm candidate for most affordable region in the US. Home prices are staying firm, but a drop in mortgage rates will give buyers more power in 2026. Relief for homebuyers is on the horizon in 2026. Zillow analyzed 50 of the largest US metros and found that 20 of them will become affordable by the end of 2026. The company defined "affordable" as mortgage payments not exceeding 30% of the median household income. Although affordability is improving across the US, Zillow senior economist Kara Ng told Business Insider that buyers may not feel it in already expensive markets, like Seattle, for example. "The typical household buying a typical home in Seattle is going to spend 47% of their income on monthly payments," Ng told Business Insider. "We expect them to spend from 47% down to 45% over the next year. So that's an improvement in affordability, but it's a very different starting place." The Midwest has reclaimed its spot as the most affordable region of the country, taking up nearly half of the list, while the Sun Belt, once established as the hottest place to be, sees a slight exodus. "The Midwest markets generally avoided the steepest pandemic-era price run ups — so if they were affordable, they're probably still affordable now," Ng said. "For the Sun Belt, what happened was that everyone wanted to go to the Sun Belt. They wanted outdoor living, they wanted sun, they wanted relatively affordable prices, so prices really shot up." While pretty much every market will experience some improvement in affordability, that doesn't necessarily mean home prices are going down. Prices are essentially staying put nationwide, Ng said, but with mortgage rates decreasing and incomes steadily increasing, buyers in 2026 will have $30,000 in additional buying power versus 2025. Here are 20 metros that Zillow expects to reach the affordable threshold in 2026. 20. Atlanta, GA Atlanta. otman lazrak/Getty Images Zillow Home Value Index: $374,477 Monthly mortgage cost: $2,473 Share of median household income spent on mortgage: 30.6% Expected affordability by end of 2026: 29.9% 19. Chicago, IL Chicago. Gunther Fraulob/Getty Images Zillow Home Value Index: $336,642 Monthly mortgage cost: $2,404 Share of median household income spent on mortgage: 30.4% Expected affordability by end of 2026: 29.7% 18. Raleigh, NC Raleigh, North Carolina. Walter Bibikow/Getty Images Zillow Home Value Index: $429,840 Monthly mortgage cost: $2,719 Share of median household income spent on mortgage: 30.4% Expected affordability by end of 2026: 29.6% 17. Columbus, OH Columbus, Ohio. otman lazrak/Getty Images Zillow Home Value Index: $319,035 Monthly mortgage cost: $2,188 Share of median household income spent on mortgage: 30% Expected affordability by end of 2026: 29.5% 16. Kansas City, MO Kansas City, Missouri. Sean Pavone/Shutterstock Zillow Home Value Index: $312,751 Monthly mortgage cost: $2,161 Share of median household income spent on mortgage: 29.4% Expected affordability by end of 2026: 28.9% 15. Houston, TX Houston. Art Wager/Getty Images Zillow Home Value Index: $303,084 Monthly mortgage cost: $2,119 Share of median household income spent on mortgage: 29.8% Expected affordability by end of 2026: 28.8% 14. Minneapolis, MN Minneapolis. JoeChristensen/Getty Images Zillow Home Value Index: $377,251 Monthly mortgage cost: $2,562 Share of median household income spent on mortgage: 30% Expected affordability by end of 2026: 28.7% 13. Baltimore, MD Baltimore. Wirestock/Getty Images Zillow Home Value Index: $391,913 Monthly mortgage cost: $2,522 Share of median household income spent on mortgage: 29.3% Expected affordability by end of 2026: 28.2% 12. Cincinnati, OH Cincinnati. Flick Foto Studio/Getty Images Zillow Home Value Index: $297,209 Monthly mortgage cost: $2,034 Share of median household income spent on mortgage: 28.6% Expected affordability by end of 2026: 28.1% 11. Cleveland, OH Cleveland. David Shvartsman/Getty Images Zillow Home Value Index: $238,517 Monthly mortgage cost: $1,723 Share of median household income spent on mortgage: 28.1% Expected affordability by end of 2026: 27.7% 10. San Antonio, TX San Antonio, Texas, located in Bexar County Gabriel Perez/Getty Images Zillow Home Value Index: $274,336 Monthly mortgage cost: $1,983 Share of median household income spent on mortgage: 28.9% Expected affordability by end of 2026: 27.7% 9. Memphis, TN Memphis, Tennessee. George Dodd/Getty Images Zillow Home Value Index: $239,011 Monthly mortgage cost: $1,647 Share of median household income spent on mortgage: 27.7% Expected affordability by end of 2026: 26.9% 8. Indianapolis, IN Indianapolis, Indiana. Jeremy Poland/Getty Images Zillow Home Value Index: $284,684 Monthly mortgage cost: $1,874 Share of median household income spent on mortgage: 27% Expected affordability by end of 2026: 26.6% 7. Louisville, KY Louisville, Kentucky. alexeys/Getty Images Zillow Home Value Index: $270,246 Monthly mortgage cost: $1,759 Share of median household income spent on mortgage: 27.2% Expected affordability by end of 2026: 26.4% 6. Buffalo, NY Buffalo, New York. Getty Images Zillow Home Value Index: $272,868 Monthly mortgage cost: $1,675 Share of median household income spent on mortgage: 26.6% Expected affordability by end of 2026: 26.3% 5. Oklahoma City, OK Oklahoma City. Art Wager/Getty Images Zillow Home Value Index: $239,880 Monthly mortgage cost: $1,725 Share of median household income spent on mortgage: 26.9% Expected affordability by end of 2026: 26.3% 4. Detroit, MI Detroit. Sean Pavone/Getty Images Zillow Home Value Index: $256,357 Monthly mortgage cost: $1,739 Share of median household income spent on mortgage: 26.1% Expected affordability by end of 2026: 25.5% 3. St. Louis, MO St. Louis. roman_slavik/Getty Images Zillow Home Value Index: $263,846 Monthly mortgage cost: $1,841 Share of median household income spent on mortgage: 25.9% Expected affordability by end of 2026: 25.2% 2. Birmingham, AL Highway 65 in Birmingham, Alabama. John Coletti/Getty Images Zillow Home Value Index: $251,913 Monthly mortgage cost: $1,599 Share of median household income spent on mortgage: 24.2% Expected affordability by end of 2026: 23.3% 1. Pittsburgh, PA Pittsburgh. Sean Pavone/Getty Images Zillow Home Value Index: $218,845 Monthly mortgage cost: $1,519 Share of median household income spent on mortgage: 22.3% Expected affordability by end of 2026: 21.4% Read the original article on Business Insider
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