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While interest rates are on the decline and inventory increased to end 2025, the Greater Boston housing market was named one of the worst in the nation.
An analysis by Zillow economists ranked Boston as the seventh-least buyer-friendly market.
Forty-three percent of a household’s income is required for a typical mortgage payment in Boston, according to Zillow. At the end of 2025, the year-to-date median sale price was $799,000, an increase of 5.1 percent year-to-year.
U.S. home values are forecasted to grow 1.2 percent in 2026 after national values were roughly flat in 2025 according to Zillow. The listings portal’s economists also project 4.26 million existing home sales in 2026, a 4.3 percent increase over 2025. Zillow credits increasing affordability for the growth in sales as mortgage rates come down and numbers of homes for sale increases.
Indianapolis, Indiana, was named the best market for buyers in the nation. The typical home value is just $283,040, which requires just 26.9 percent of a household’s income for a typical mortgage payment.
“Home shoppers have room to breathe in these buyer-friendly markets. Lower competition gives buyers more time to decide and wiggle room to negotiate, adding up to a less stressful shopping experience,” Zillow senior economist Orphe Divounguy said in a statement. “Cooling prices today, paired with expected growth ahead, make for a good entry point for those who have been waiting for the right moment. For sellers, pricing strategically from the start becomes that much more important when buyers hold the power.”
Zillow previously named Hartford, Connecticut as its hottest market of 2026. The company believes that competition from buyers will be high throughout the Northeast, including across Massachusetts.
“Competition among buyers will be stiff and sellers will have the upper hand in this year’s hottest markets,” Zillow chief economist Mischa Fisher said in a statement. “In today’s market affordability is all-important, but any improvements in 2026 will depend on location.”
