The hottest housing market in the US is a hardscrabble city that's been shrinking for 75 years

Hartford, Connecticut has experienced a strong housing market recovery, with homes selling for more than asking prices and fewer listings available than before the pandemic. Typical home values were $382,000 in October 2025. Two-thirds of homes sold above their asking price, and there were 63% fewer homes for sale than pre-pandemic levels. Price cuts were limited, with only 16.5% of listings seeing reductions in 2025, while home values increased by 4.3% and are forecast to rise by 3.9% in 2026. Other hot markets include Buffalo and the New York metro area, where demand also exceeds supply. The broader Northeast continues to face a shortage of suitable homes, even as some Sun Belt regions add housing alongside population growth.

"Hartford, Connecticut, has seen a remarkable recovery - with Nutmeggers competing furiously for the surprisingly affordable homes that go up for sale, according to Zillow's 2026 hot housing market report. Typical home values in "The Insurance City" were $382,000 in October 2025. Two-thirds of homes in Hartford sold above their asking price, and there were 63% fewer homes for sale than there were pre-pandemic, pushing up demand, according to Zillow."

"Only 16.5% of Hartford listings saw price cuts in 2025, while home values grew by 4.3% in the same time and are forecast to grow 3.9% in 2026. It's one of several surprising cities with robust housing markets, where demand is far outstripping supply. The second-hottest city is Buffalo, New York - where homes averaged $277,000 and 65% of sales closed over asking."

"The New York City area clocked in at no. 3 - with nearly half of homes going for over asking, and home values rising 2.9% last year. The average sale price was $704,000. Only 13.5% of listings saw price cuts in 2025 while New York metro home values are forecast to rise by 1.5% this year. While Texas, Florida and the Carolinas have seen seen the fastest population growth, they've also been building houses."

"Much of the Northeast is still struggling with a desperate shortage of suitable homes, according to Zillow. Each of the cities on Zillow's list have far fewer homes on the market now than before the Covid pandemic, Hartford has 63% fewer homes for sale, while New York's available housing was about half what it was five years ago. Hartford may be particularly surprising because it's famously a hard-luck case."

Read at New York Post