The hottest real estate markets for 2026 are reaping the benefits of RTO

The Manhattan skyline. — New York City. duoma/Getty Images

Real estate professionals and industry experts are keeping a close eye on a few key markets heading into 2026, which means you should too.

Consulting firm PwC, in partnership with the Urban Land Institute (ULI), released its Emerging Trends in Real Estate report for 2026, highlighted by its ranking of the top markets to watch. The rankings are based on a survey of more than 1,000 industry experts who rated markets based on their investment and development prospects.

Though the Sun Belt has often been billed as an up-and-coming region boasting a mostly affordable cost of living; this list highlights the Northeast as a region with upsides going into 2026.

“There are four Northeast markets in the top 10,” PwC partner Andrew Alperstein told Business Insider. “It’s really a story around New York City and some of the back to office and back to living in the city that we’ve seen, and the accessibility of places like Brooklyn and Jersey City — which, for the millennial younger crowd, is a little bit more affordable, still proximate to New York City, and has a good amenity base.”

Jersey City, New Jersey, experienced the largest positive jump among the top 10 markets, rising 17 spots from the previous year, capitalizing on its proximity to Manhattan. People returning to the office need places to eat, places to shop, and most importantly, places to live. Jersey City invested $177.4 million in the first half of 2025, and 65% of that investment volume went toward apartments, according to data from CBRE Research and MSCI.

While some Southern markets like Austin have seen major growth in recent years, they’ve since cooled off due to a lack of economic diversity, according to Alperstein. Only two Texas markets cracked the top 10, and only three made the top 25.

“There was almost a little bit of an exuberance around Austin with a lot of the focus on technology, and it’s probably a little bit too technology centric, relative to somewhere like Dallas or Miami that has more diversification in employment and in their employment growth,” he said.

The cities that are thriving going into 2026 are ones that can offer affordability, a healthy job market, and amenities without too many sacrifices.

Below are PwC and ULI’s markets to watch for 2026.

10. Phoenix, AZ