Top 10 Cities for Real Estate Investing in 2026

Real Estate Markets In 2026

Location has been heralded as the most important factor in any real estate investment. With so much recent uncertainty in the broader U.S. housing market, every real estate investor wants to know the most promising and secure cities to put their money into.

While opportunities can arise in any market, gaining insight into cities that are most likely to generate lucrative deals can prove invaluable. That’s why we’ve put together this list of our top ten rental real estate markets to watch out for in 2026.

Whether you’ve resolved to embark on your investment journey for the first time or to fortify your existing portfolio in the new year, this article will help you channel your newfound energy in the optimal direction.

How to Find the Best Markets for Real Estate Investing

What makes a city a promising area for investing? Which factors do real estate investors think about when considering whether to invest in a new market?

The best markets for real estate investing have a few things in common. They have high demand for rentals, leading to more tenant applications and higher quality candidates. Strong markets also have high rental rates, unhindered by local rent control and supported by predictable rent increases each year.

Good markets also tend to have lower interest rates, affordable home prices, and landlord-friendly laws. Population and job growth are a good sign, as are competitive deals. Lastly, you want to see real estate appreciation over time—properties in good markets gain and retain value over time. When evaluating housing affordability, it also helps to consider the affordability ratio alongside the median list price and typical home maintenance costs, since those can materially impact your cash flow.

In summary, here are the top factors to look out for when evaluating a rental market:

• High demand for rentals
• High rental rates
• No rent control
• Annual rent increases
• Low interest rates
• Affordable home prices
• Landlord-friendly state laws
• Economic environment
• Population and job growth
• Year-over-year home appreciation and median home-price appreciation

Top 10 Best Real Estate Markets 2026

The fastest-growing real estate markets have historically been centered around Sunbelt states like Texas, California, Florida, Georgia, and North Carolina. While these areas are still seeing growth, the U.S. is also seeing movement away from expensive major cities like San Diego, Los Angeles, Miami, and New York—and even from pricey suburban standouts like Irvine (CA) and McKinney (TX), where affordability has tightened for many buyers.

Instead, we’re seeing smaller Midwestern, Mid-Atlantic, and New England states like Ohio and Virginia also become promising markets for investing in 2026. Homebuyers and renters alike seem to be moving towards more affordable “refuge markets” in favor of traditionally popular metro and coastal areas, where their money goes farther and housing affordability is better.

Although there are many other promising markets and everyone’s criteria are different, here are a few of our top picks for the best real estate markets (not in order) in coming year. (For an extra layer of confidence, it’s recommended to check your contenders against third-party benchmarks from sources like Bankrate, and industry snapshots from NAR.)

1. Raleigh, NC

Raleigh has been a reliable city for real estate investors in past years and will continue to be so in the new year. Average home values in Raleigh have continued to climb steadily (up 5.06% in the past 3 years), with a slight shift towards a buyer’s market at the current moment. This is great for investors, as it gives them some negotiating power with sellers in their search for properties.

Raleigh is also part of the research triangle of North Carolina, home to some of the best universities in the country: Duke University, North Carolina State University, and The University of North Carolina at Chapel Hill. Education abounds here, as do jobs and opportunity. Because its population is highly educated, Raleigh attracts funding for research and development, tech start-ups, healthcare institutions, and high-salaried positions. The local universities lead to a large student population and high demand for rentals near the universities.

Unemployment rates are low, and the job market is projected to grow further in 2026. Investors and renters alike will find Raleigh’s high quality of life to be an excellent place for buying and living, respectively, in 2026—especially if you’re looking for balanced growth driven by strong income growth and solid job gains.

2. Atlantic City, NJ

Another location that deviates from the Rust Belt trend, Atlantic City, has seen significant growth in its rental markets, making it another promising location for real estate investors. In the past three years, rental properties alone have seen a 66.96% increase, with the median rent seeing a 20% increase over the past three years.

Though Atlantic City buzz has cooled a bit in the past year, they snagged the number one spot in BiggerPockets’s 2026 list of Top 10 Cities for Projected Gains. They boast an expected 5.3% real estate market growth based on data from Zillow’s home price projections, which is in part the cause for their high placement. Plus, the U.S. Census Bureau reports that the city saw a steady 1.2% population growth from 2020 to 2024. Meaning, in spite of recent economic twists and turns, people continue to relocate there.

Renters and homebuyers looking for a more affordable East Coast city to call home will likely continue to do so in the following year, which makes it a great spot for real estate investments—and a potential candidate for “healthiest real estate markets” watchlists, as demand stays strong while pricing doesn’t outrun wages.

3. Memphis, TN

Memphis is an attractive city for first-time home buyers due to its reasonable home prices. With typical home values around $143,363, Memphis’s affordability ratio attracts homebuyers from expensive cities like Los Angeles, Chicago, and San Francisco. The city also has an inexpensive cost of living compared with high costs of goods and services elsewhere, leading to high returns for real estate investing and property flips.

Tennessee also lacks a state income tax, which is another positive factor for investors and first-time home buyers alike. This no doubt contributes to the Memphis housing market being somewhat competitive, with homes selling in 4 days on average, according to Redfin.

Beyond housing, Memphis has plenty more to offer potential tenants and homebuyers. Memphis’s business-friendly environment translates to high employment rates and job prospects. The sectors hiring at the fastest rates include construction, manufacturing, transportation, and information, home to companies like FedEx Corp., ServiceMaster, International Paper, and Walmart (Bureau of Labor Statistics). Local culture is vibrant and active, known for good music, food, and sports.

4. Knoxville, TN

BiggerPockets listed Knoxville as the 2nd most promising market for projected gains in 2026, and with good reason. Its median home price sits around $409,000, up 14.43% in the last 3 years. Prices began to cool off a bit at the end of 2025, giving investors an opportunity to make purchases soon that will pay off in the upcoming year.

Plus, its job market is set to grow in 2026, as their technology and healthcare sectors have reportedly grown by 15% and 12% respectively. More opportunity always brings a larger population in need of housing, perfect for primed investors. And with its shrinking unemployment rate, Knoxville is sure to welcome a pool of versatile of prospective tenants. This makes it ideal for investors prioritizing two key areas: durable employment expansion and year-over-year home appreciation.

5. Richmond, VA

Only a few hours from D.C., Richmond is another one of the best markets for real estate investing. Richmond’s growing population, low cost of living, and great school systems fuel this city’s real estate marketplace. Typical home prices are around $385,000 (up 14.31% in the last three years), with property values currently experiencing slight decreases.

Even at higher prices, Richmond’s renters can afford to rent here due to a healthy job market based on education and health services, construction, and professional and business services. Richmond homes sell in just 21 days on average, making it a “Very Competitive” market per Redfin’s standards. As more people look to move to there, Richmond investors can expect a stable ROI in the long run—and potentially some of the best job growth rates in the region if current momentum holds.

6. Green Bay, WI

In Wisconsin, Green Bay has experienced a quiet growth that investors are taking notice of. According to housing data from Redfin, the local real estate market has maintained stable overall growth through its healthy bouts of highs and lows in the post-pandemic era. This means that Green Bay isn’t a market for a quick buck, but rather one of the best markets to invest in real estate long-term.

Last year, the average number of days on the market fell by 28.3%, proving that properties are being snapped up faster and faster. And based on Zillow’s housing data, BiggerPockets projects a 4.1% growth in the area’s real estate market for 2026, which earns it third place on their list of the best cities for real estate gains in the coming year.

7. Cincinnati, OH

Located in the southwest corner of Ohio, Cincinnati joins other Ohio towns like Youngstown and Toledo as best for buyers due to affordability, low mortgage rates, and high quality of life. Cincinnati is moving towards a seller’s market with higher average house prices ($242,545) and values increasing by 1.9% the past year.

Additionally, the median days to pending for Cincinnati properties is only 15 days as of November 2025, meaning these properties are pursued quickly. Cincinnati is quickly becoming one of the most desirable cities for homeowners in the Midwest. And, it’s home to yours truly!

8. Pittsburgh, PA

Pittsburgh’s real estate market has steadily grown for years now, with average home prices up 11.2% this year from the last. It’s seen a spike of residents moving in from areas like DC, New York City, and areas of California—likely due to stark contrasts in affordability and opportunity.

In spite of home price increases, properties in Pittsburgh remain affordable for investors and great for those looking to get started with real estate investing. It’s a dependable area, and it looks like it’s going to stay that way for 2026. Plus, stable growth in the job market continues to keep both investors and residents interested in the region long-term—which is one reason many still point to Rust Belt metros as some of the best real estate investments when favoring durability over hype.

9. South Bend, IN

Home to the University of Notre Dame, South Bend is another city with an optimistic future for 2026. Over the last 3 years, the median price for a South Bend home has increased by 9.94%, signaling a sustained growth in demand for properties in the area. Realtor.com has even indexed South Bend’s market as “Hot,” meaning homes sell quickly at or above their asking prices.

It’s also an ideal location for real estate investors and landlords because around 41% of homes are occupied by renters in South Bend. This need for rentals led to an 8.08% increase in the median rent in 2025, continuing its trend of growth from previous years. With a stable supply of renters in the area, South Bend properties are sure to perform well in the future for investors.

10. Portland, ME

This New England city is popular with out-of-state investors and has seen rent and prices both driven up in the last five years. Average property values in Portland, ME are at $545,069, with rent prices seeing a 4% increase in the past year alone. The city’s real estate market is currently very hot, according to both Redfin and Realtor.com’s indexes.

The area has finally experienced a slight cooling, with median home prices down 5.46% in the past year, making it a great time for investors to make purchases in 2026. Perhaps most notably, a recent study ranked Portland, ME #5 in the country for employment opportunity and earning potential in the country. With an influx of jobseekers likely, Portland is one of the best places for investors to get ahead of the curve.

Choosing a Market: Considerations

It’s important to be meticulous when it comes to deciding where to invest in real estate. You must do thorough research to understand whether the markets you’re interested in are best for your business.

Here are a few questions to ask yourself before you choose a market to invest in:

• How involved do I want to be in the property management?
• Do I want to invest in my city or long-distance?
• Do I have contacts in the city I’m investing in (property manager, maintenance contractors, etc.)?
• Can I easily travel to this city at least a few times a year?
• Can I see myself buying more properties here one day?
• Does the state have landlord-friendly property laws?
• What are the property tax rates in this city?
• Is the market a buyer’s or seller’s market?
• What is the market’s overall trajectory in the next five to ten years?
• Do the numbers still work after budgeting for home maintenance costs, vacancy, and insurance?
• Does the median list price align with local incomes (and the demographic you’re targeting)?
• If I’m comparing markets across the nation, am I prioritizing balanced growth or pure appreciation?
• Do I have a top local realtor who can help me understand neighborhoods, pricing strategy, and which listings have room for negotiation?

Conclusion

Understanding market trends and having a working knowledge of the best markets to invest in real estate is a smart way to start the new year. Finding the most profitable markets is about looking at a location holistically. What opportunities might there be for tenants? What has the job market looked like in recent years? Are there younger or older tenant pools, and how might their needs be different?

By doing extensive market research and tuning into an area’s local news, you can better consider every factor pertaining to the future of an area. With more detailed information about your options, you can be sure to make the best choice for your rental business and its expansion.

FAQs

What makes a city one of the best real estate investments in 2026?

The best real estate investments typically have high rental demand, high rental rates, no rent control, annual rent increases, low interest rates, affordable home prices, landlord-friendly laws, a strong economic environment, population/job growth, and long-term appreciation. Many housing experts also look for a strong millennial presence, solid job gains, and consistent year-over-year home appreciation.

Why are more renters and buyers moving away from expensive coastal metros in 2026?

People are moving away from expensive cities (like San Diego, Los Angeles, Miami, and New York) toward more affordable “refuge markets,” where their money goes farther and housing affordability is better.

What are the best cities to buy rental property in 2026?

Research points to Raleigh (NC), Atlantic City (NJ), Memphis (TN), Knoxville (TN), Richmond (VA), Green Bay (WI), and Portland (ME), as a few top real estate markets to watch in 2026. As always, cross-check your criteria with reputable sources, local comps, and broad industry indicators to ensure a stronger match for your strategy.