Ranked: The best US cities for home buyers in 2026, according to data

Whether you work in real estate or are simply searching for a place to call home, understanding the housing market is an important step before purchasing a property.

To identify the best local real estate markets in the U.S., WalletHub evaluated 300 cities of different sizes using 17 indicators of housing-market attractiveness and economic strength. The analysis considered factors ranging from median home-price appreciation and housing affordability to employment growth.

What they're saying:

"Current home prices are extremely important, but there’s much more to consider when evaluating the health of a city’s real estate market," said Chip Lupo, a WalletHub analyst. "Factors such as the cost of living, potential home-value appreciation, the availability of recently built homes and the strength of the local job market should all be weighed alongside asking prices and interest rates. The best cities may not always be the cheapest, but they offer strong housing options and long-term stability."

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Best real estate markets

Dig deeper:

Frisco, Texas

Frisco, Texas, ranks as the best real estate market in the country. One of its biggest strengths is its abundance of newer housing. Nearly 47% of the city’s homes were built between 2010 and 2024, the highest share among the cities studied. For buyers, newer construction can mean fewer immediate repairs and maintenance projects after moving in.

Frisco also performs well when it comes to affordability. Based on home prices as a percentage of household income, it ranks as the 95th-cheapest of the 300 cities included in the study. Other household expenses are relatively manageable as well, with Frisco ranking 11th-cheapest for phone service and 11th-cheapest for maintenance and energy costs.

The city’s strong employment picture adds to its appeal. Frisco has the seventh-best job growth rate in the country, helping attract new residents and supporting continued demand in its expanding housing market.

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McKinney, Texas

McKinney, Texas, takes the No. 2 spot, thanks largely to rapid residential and economic growth. Roughly 40% of its homes were constructed between 2010 and 2024, giving McKinney the second-highest share of recently built housing among the cities analyzed. More homes are also on the way, as the city ranks 10th in the country for building permits per capita.

McKinney may not be the least expensive place to buy a home, but its prices remain relatively affordable compared with many other cities. The median home price is approximately 380% of the median household income, placing McKinney 73rd-cheapest among the 300 cities studied. It also ranks among the 35 least expensive cities for maintenance, telephone, and energy expenses.

A healthy labor market provides another advantage. McKinney has the sixth-highest job growth rate nationwide, with annual employment growth exceeding 17%, strengthening the economic foundation of its real estate market.

Murfreesboro, Tenn. 

Murfreesboro, Tennessee, ranks third among the best real estate markets, supported by substantial residential development and a strong local economy. The city has the fourth-highest percentage of homes built between 2010 and 2024 and ranks 26th nationally for building-permit activity.

Buying a home in Murfreesboro can be somewhat more expensive. The city ranks 137th for housing affordability, although that still places it within the more affordable half of the 300 cities included in the study. Its housing market is also relatively balanced, with properties spending about an average amount of time on the market.

Residents appear well positioned to manage their housing expenses. Murfreesboro has the 46th-lowest mortgage delinquency rate and the 11th-lowest foreclosure rate among the cities studied. A strong employment environment likely contributes to that stability, as the city has one of the nation’s lowest unemployment rates as well as one of its strongest job growth rates.

Methodology:

To determine the best real estate markets in the U.S., WalletHub compared 300 cities across two key dimensions: real estate market conditions and affordability and economic environment. 

The analysis used 17 relevant metrics, each graded on a 100-point scale, with a score of 100 representing the healthiest housing market. 

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WalletHub then calculated each city’s weighted average across all metrics to determine its overall score and ranking. 

Cities were also grouped by population size, with large cities defined as those with more than 300,000 residents, midsize cities as those with 150,000 to 300,000 residents and small cities as those with fewer than 150,000 residents.

Real Estate