20 big cities that will become affordable in 2026

"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, "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.""

"A Zillow analysis forecasts 20 out of the 50 largest metros will become more affordable in 2026. 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."

Twenty of the 50 largest US metropolitan areas will become affordable by the end of 2026, defined as mortgage payments not exceeding 30% of median household income. Affordability is improving nationwide but remains strained in already expensive markets where monthly payments can still consume a large income share. The Midwest leads with the most affordable metros, having largely avoided pandemic-era price surges, while the Sun Belt saw steep price increases. Home prices are largely stable; falling mortgage rates and rising incomes are projected to give buyers about $30,000 more purchasing power in 2026 compared with 2025.

Read at Business Insider