Serhant Founder & CEO Ryan Serhant shares his perspective on the real estate market on ‘The Claman Countdown.’
With mortgage rates expected to rise 6% next year, 10 US markets could see significant improvements as consumers regain purchasing power.
The National Association of Realtors (NAR) recently looked at 10 key indicators, including how low prices affect purchasing power, how well home prices match local incomes, migration trends and job growth to determine where “home sales are likely to be the healthiest next year.”
To make the list, each area needs a population of more than 250,000, stronger performance than the US in at least five indicators and clear opportunities for buyers and Realtors, according to the report.
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The top 10 places to buy tropical homes include:
Charleston, South Carolina
French Quarter in Charleston, SC (Stock)
Charleston’s inventory is rising in the $200,000–$350,000 range, and more than 20,000 additional homes can qualify for a median-priced home with 6% appreciation.
Millennials make up 36% of the area’s households, and the area has strong job and income growth, according to NAR.
“Charleston has a large number of tenants on the edge of affordability,” the report notes. “The change from 7% to 6% significantly increases the number of homes in the area that qualify for the median home.”
Charlotte, North Carolina
More than 52,000 additional households can qualify for affordable housing at a 6% mortgage rate. The metro has a strong migration inflow, income gains, job growth and a high concentration of millennials.
“The formula that won Charlotte in 2026 is simple: new buyers, strong jobs, and more listings where people need them,” the report notes.
Columbus, Ohio
View of Columbus, Ohio. (Stock)
More than 41,000 additional households will qualify for a 6% mortgage rate. Millennials make up 37.5% of the area, incomes are higher than last year and job growth is strong, according to the report.
“Columbus continues to exceed expectations as one of the Midwest’s strongest and most stable housing markets. Income growth remains stronger than the US average, and investment — including property expansion — is delivering high-quality jobs that support long-term housing demand,” NAR noted.
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Indianapolis, Indiana
Indianapolis is one of the “most balanced and opportunity-rich markets heading into 2026,” according to NAR.
More than 42,700 additional homes will qualify at a rate of 6%, and the area has a strong millennial presence, strong job gains and a strong correlation between home values and local income.
Jacksonville, Florida
“Jacksonville is one of Florida’s markets where both affordability and innovation are growing at the same time,” notes NAR.
More than 39,700 additional households qualify for a median-priced home at a rate of 6%. The area also has strong income growth and rising immigration.
Minneapolis-St. Paul, Minnesota
View of Minneapolis. (Stock)
The Twin Cities is gaining more than 81,000 newly trained households at a rate of 6%.
More homes in the $250,000–$450,000 range are returning to the market, and the area is showing strong job growth, an abundance of millennial homes and a strong alignment between prices and incomes.
“Minneapolis is one of the most responsive markets in the country to the grassroots — and 2026 will show it,” notes NAR.
Raleigh, North Carolina
About 27,000 additional families qualify for lower rates.
Raleigh has strong income growth, a high millennial population, strong job gains and a strong correlation between income and home prices.
“Raleigh’s combination of fast-growing revenues and well-aligned assets make it one of the most obvious opportunity markets for 2026,” NAR noted.
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Richmond, Virginia
More than 25,500 additional households qualify for a median-priced home with mortgage rates of 6%.
One of the “quiet potential markets for 2026,” Richmond has strong job gains, fewer price reductions than the national average, a strong match between home prices and incomes and a strong millennial presence.
“Richmond’s strength lies in its stability – and in 2026, that stability becomes an opportunity,” the report said.
Salt Lake City, Utah
A view of the city of Salt Lake City (Stock)
About 25,000 more families could afford a median-priced home by 6%.
Salt Lake City has a strong millennial presence, strong income growth, strong job gains and listings that are increasingly in line with local income.
“Salt Lake City’s young demographics and booming innovation make it one of the biggest beneficiaries of lower prices in 2026,” NAR noted. “Income listings are up 20.7% year-over-year, making it one of the largest and most accessible markets.”
Spokane, Washington
“Spokane is one of the few cities in the West where both affordability and innovation are moving in the right direction,” the report notes.
More than 9,500 additional households in Spokane qualify for a moderately priced home with mortgage rates as low as 6%. The market also has strong income growth, a high millennial concentration and fewer price cuts than the national average.
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Mortgage rates rose last Thursday as markets reacted to the Federal Reserve’s decision to cut interest rates for the third time in a row, according to Realtor.com.
The average 30-year bond rose to 6.22% in the week ended Dec. 11, from 6.19% the previous week, according to Freddie Mac. Last year, rates were around 6.60%.
