Redfin, a national real estate brokerage, named Syracuse among its housing markets most likely to heat up in 2026.
Other locations on the list included Cleveland, Ohio; St. Louis, Missouri; Minneapolis, Minnesota; Madison, Wisconsin and the suburbs around New York City.
The projections on hot markets were included in a new Redfin report on housing market predictions for next year.
The company said the Midwest and Great Lakes regions have wide appeal because they have remained relatively affordable amid the sharp increases in housing costs in recent years. They’re also seen as safe havens from climate-related disasters like wildfires and floods.
Even though Syracuse and the rest of Central New York have seen sharp increases in home prices since the Covid-19 pandemic hit, the region is still more affordable than bigger metro areas elsewhere in the country.
Realtor.com expects housing prices in Syracuse to increase 12.4% next year, the biggest increase of any New York location in its projections.
Markets most likely to cool down in 2026 include Nashville, Tennessee; San Antonio, Texas; Austin, Texas; Fort Lauderdale, Florida; West Palm Beach, Florida and Miami, Florida.
Natural disasters and rising insurance costs are partially to blame for the potential slowdown in those markets, according to Redfin. Pandemic-era remote workers returning to where their offices are located also play a role.
Redfin expects mortgage rates to fall to the low-6% range next year and it projected wages will rise faster than home prices. Both those factors will help homes become more affordable for buyers.
The company said the improvement is not likely to be big enough. It expects flat homeownership rates among younger generations and higher rent costs as more Americans remain in apartments instead of buying homes.
The company is predicting an increase in home sales of about 3% in 2026.
