The housing market may be charting a different course. After years of stagnation, the National Association of Realtors (NAR) is forecasting a 14% surge in 2026 home sales, with the median home price going up 4%.
Of course, not every area will see these exact types of gains. Some might be poised to blow up.
By that, we’re referring to housing markets that are more likely to outperform the expected average surge. These are places where a combination of job growth, affordability, housing inventory and other economic factors will work together to create above-average appreciation.
Using data from NAR, HomeLight and Redfin, here are six housing markets that show the best signs to potentially blow up in 2026.
1. Des Moines, Iowa
Des Moines is one of the best examples of an affordable and undervalued market that’s going to heat up. Analysts have tracked trends in the Midwest and note that areas with steady population growth, diversified employers, and lower home prices will most likely see stronger housing appreciation.
Specifically, sources like HomeLight mention Des Moines as a contender because of its stable housing inventory levels and moderate prices. Plus, it has solid job opportunities in insurance, finance and technology.
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2. Madison, Wisconsin
Madison shows some indicators of an outperforming housing market, like the fact that their homes are only spending a median of 42 days on the market, according to Redfin. It could point to a sign that homebuyers want to move more quickly, and that trend could continue.
Like Des Moines, continued movement into the city and accessible home prices mean more demand will build up next year.
3. Omaha, Nebraska
Another Midwestern state, Omaha, is becoming a high-demand metropolitan area. According to Redfin, homes have sat for around a median of 22 days on the market and home prices have gone up 5.6% year over year.
4. Milwaukee, Wisconsin
Milwaukee has already been blowing up this year, and its growth is far from over. Recent data from Redfin shows that this area has seen a 7% year-over-year price growth, and homes usually sit on the market for only 44 days. This could point to more competition for homes, especially as more may move here for job opportunities.
5. Pittsburgh
This city in the northeast may be considered a hidden gem and is one of the most affordable markets in the U.S., with median sale prices around $247,000. Despite its lower-than-average prices, Pittsburgh has seen steady year-over-year home appreciation of around 3.7%, which could mean that the market is seeing some traction.
The city may also see more demand as it continues to expand in industries like healthcare, robotics and tech.
6. Kansas City, Missouri
The demand for homes seems to be going up more than there are actual homes available. Redfin’s October 2025 data shows that Kansas City has a 7.5% year-over-year appreciation. Plus, long-term projection shows that this city has decent job opportunities in a variety of industries, which could continue to drive up demand.
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This article originally appeared on GOBankingRates.com: 6 Housing Markets Poised To Blow Up in 2026
