With affordability being near if not at the top of the list of housing market challenges for the past year, locations where homebuyers can find a little breathing room in competition for cost and inventory are welcome options. A new report from Zillow helps identify some of these places, where buyers have more negotiating power and time to make decisions.
In Zillow’s newly released list of the most buyer-friendly housing markets of 2026, home shoppers in Indianapolis, Atlanta and Charlotte top the list of metros where buyers are able to negotiate for relatively budget-friendly homes that have a combination of cooling prices now with expected appreciation ahead.
“Lower competition gives buyers more time to decide and wiggle room to negotiate, adding up to a less stressful shopping experience,” said Orphe Divounguy, senior economist at Zillow®. “Cooling prices today, paired with expected growth ahead, make for a good entry point for those who have been waiting for the right moment. For sellers, pricing strategically from the start becomes that much more important when buyers hold the power.”
Zillow’s most buyer-friendly markets of 2026
- Indianapolis
- Atlanta
- Charlotte
- Jacksonville
- Oklahoma City
- Memphis
- Detroit
- Miami
- Tampa
- Pittsburgh
Zillow analyzed housing conditions across major U.S. markets using three key measures that indicate buyer-friendly conditions: cooling home value growth now and forecasted appreciation ahead, the share of income a median earner would put toward the mortgage payment on a typical home, and less buyer competition, according to Zillow’s Market Heat Index. The list highlights markets where buyers have a better chance of finding a home they can afford and more room to negotiate when they do.
Most of Zillow’s top 10 buyer-friendly markets are in the Midwest and the Sun Belt. Midwest housing markets generally avoided the steepest pandemic-era price run-ups, helping maintain their relative affordability, according to Zillow. In the Sun Belt, new construction booms have helped inventory recover and eased competition for each home. In 5 of the 10 markets, a median household can afford a typical home—meaning a mortgage costs below 30% of income, assuming a 20% down payment, the Zillow report stated.
“We’ve definitely seen the Indianapolis market shift in a more buyer-friendly direction recently,” said Jim Perry, an agent with Ever Real Estate in central Indiana. “On the ground, I’m seeing homes take a bit longer to sell, price adjustments becoming more common, and sellers being more open to concessions than they were even a year ago.”
Perry notes that local market expertise becomes even more valuable in helping clients navigate these conditions.
“For agents working in buyer-friendly markets, the most important thing is to stay grounded in the data and help clients understand what’s actually driving the change,” he adds. “Educating both buyers and sellers on current inventory levels and demand trends helps set realistic expectations on both sides of the transaction. There’s a winning strategy for buyers and sellers in every market cycle, but it requires understanding how the market is moving and aligning expectations accordingly.”
Earlier this month, Zillow named Hartford the hottest market of 2026. Nationwide, Zillow’s outlook for this year calls for modest home value growth after a flat 2025.
