The South, Midwest and Mid-Atlantic dominated Zillow’s buyer-friendly markets list, with homebuyers finding favorable pricing trends and greater negotiation leverage.
Indianapolis is Zillow’s top buyer-friendly market for 2026, thanks to favorable near- and long-term home value growth trends, affordable monthly mortgage costs for median earners with a 20 percent down payment, and a more genial competitive landscape.
Homebuyers in Indiana’s capital are facing a market with a typical home value of $283,040. Monthly (+0.2 percent) and annual (+2.9 percent) home value changes are soft but steady, and the median earner will spend 26.9 percent of their monthly income on a mortgage — a share that’s within the widely accepted affordability threshold of 30 percent.
Dr. Orphe Divounguy
“Home shoppers have room to breathe in these buyer-friendly markets,” Zillow Senior Economist Orphe Divounguy said in the report. “Lower competition gives buyers more time to decide and wiggle room to negotiate, adding up to a less stressful shopping experience.”
Homebuyers can find other affordability gems throughout the South, Midwest and Mid-Atlantic, with Atlanta; Charlotte, North Carolina; Jacksonville, Florida; Oklahoma City; Memphis, Tennessee; Detroit; Miami; Tampa, Florida; and Pittsburgh making the top 10.
Pittsburgh ($217,499), Memphis ($237,882), Oklahoma City ($238,791) and Detroit ($254,355) have the lowest typical home values.
Meanwhile, Charlotte (+0 percent), Jacksonville (+0 percent), Atlanta (-0.1 percent), Miami (-0.1 percent) and Tampa (-0.1 percent) had flat or declining month-over-month typical home value growth in December, reflecting an opportunity for homebuyers to snag a great deal as buying and selling activity experiences a winter lull.
However, the projected annual home value change in these areas remains solid, reaching up to 2.6 percent.
When it comes to mortgage payments as a share of a median earner’s monthly income, very few markets meet the affordability threshold.
Alongside Indianapolis, Oklahoma City (26.8 percent), Memphis (27.5 percent), Detroit (25.9 percent) and Pittsburgh (22.2 percent) are the only markets with shares below 30 percent. Meanwhile, homebuyers with median incomes in Miami can expect to spend nearly half — 46.7 percent — of their income on their monthly mortgage.
Divounguy said the report’s findings reflect a market that provides “a good entry point” for homebuyers ready to make a move.
“Cooling prices today, paired with expected growth ahead, make for a good entry point for those who have been waiting for the right moment,” he said. “For sellers, pricing strategically from the start becomes that much more important when buyers hold the power.”
