The South, Midwest, and Mid-Atlantic regions make up the majority of Zillow’s list of buyer-friendly markets, where homebuyers are finding favorable pricing trends and significant bargaining power.
Indianapolis will be Zillow’s most buyer-friendly market in 2026 thanks to favorable growth trends in short- and long-term home values, affordable monthly mortgage costs for average income earners with a 20 percent down payment, and a more benign competitive environment.
Home buyers in Indiana’s capital city face a market with a typical home price of $283,040. Monthly (+0.2 percent) and annual (+2.9 percent) home value changes are slow but steady, with the average earner spending 26.9 percent of their monthly income on their mortgage. This percentage is within the widely accepted affordability standard of 30 percent.
Dr. Orpheus Divongay
“Homebuyers have some breathing room in this buyer-friendly market,” Zillow senior economist Orphe Divounguy said in a report. “With less competition, buyers have more time to make decisions, more room to negotiate, and a less stressful shopping experience.”
Homebuyers can find affordable gems throughout the South, Midwest, and Mid-Atlantic, including Atlanta. Charlotte, North Carolina. Jacksonville, Florida. Oklahoma City; Memphis, Tennessee; Detroit; Miami; Tampa, Florida. And Pittsburgh is in the top 10.
The lowest typical home prices are in Pittsburgh ($217,499), Memphis ($237,882), Oklahoma City ($238,791), and Detroit ($254,355).
Meanwhile, typical home price growth in December for Charlotte (+0%), Jacksonville (+0%), Atlanta (-0.1%), Miami (-0.1%), and Tampa (-0.1%) was flat or down month-over-month, reflecting an opportunity for homebuyers to make big gains as buying and selling activity took a winter break.
However, annual changes in home values in these areas are expected to remain strong and reach up to 2.6%.
When it comes to mortgage payments as a percentage of the average income earner’s monthly income, there are very few markets that meet the affordability criteria.
Along with Indianapolis, the only cities with shares below 30% are Oklahoma City (26.8%), Memphis (27.5%), Detroit (25.9%), and Pittsburgh (22.2%). Meanwhile, a median-income homebuyer in Miami can expect to spend nearly half (46.7%) of their income on their monthly mortgage.
Mr Devongai said the report’s findings reflected a market that offered homebuyers a “good entry point” to buying a home.
“Today’s low prices, coupled with expected future growth, make it a good entry point for those who have been waiting for the right time,” he said. “For sellers, once buyers are in power, it becomes even more important to set prices strategically from the beginning.”
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