The best housing markets for buyers

The most (and least) buyer-friendly housing markets in the U.S.

Florida dominates the list of the best housing markets for homebuyers, handily snagging six of the top 10 spots. These sunny cities shine especially bright when it comes to the local housing market’s competitiveness — as in, there isn’t much. These cities earned their ranks with remarkably low-competition markets, featuring a surplus of homes for sale relative to population size and a modest fraction of homes selling above list price.

Case in point: Cape Coral, Florida, ranks No. 1 for both housing market competitiveness (the lowest of all cities we compared) and overall buyer-friendliness. This city of just 233,000 people offers an abundance of homes for sale relative to the population, with the vast majority (95.8%) selling at or below list price. Cape Coral also ranks high for livability (16th out of 272).

At the other end of the spectrum — and the other side of the country — Berkeley, California, is the least favorable market for buyers. However, it’s not the only California city at the bottom of the rankings. In fact, California is home to the 10 worst cities for homebuyers. While the worst-ranked cities vary somewhat in size and safety metrics, all 10 score at the bottom of the pack for their competition (staggeringly high) and affordability (abysmally low).

Check out the best and worst rankings, listed below:

Beyond the cluster of Florida cities, the other top-ranking cities stand out, too, and not just because they’re located outside the Sunshine State:

• Looking for a sweet deal? Sugar Land, Texas, has the most affordable housing market in the top 10. It ranks ninth best overall for that metric.
• Those seeking a home — and a housing market — with plenty of elbow room could consider Centennial, Colorado. Among homes pending sale recently in this Denver-area city, the median size was nearly 2,200 square feet, the largest in the top 10 and sixth largest among all the cities we compared.
• Carmel, Indiana, leads in overall livability. The 10 best cities for buyers share low crime rates, but Carmel’s outstanding safety scores and stellar public schools push the Indianapolis suburb to the front of the pack in this category.
• It’s no shocker that Surprise, Arizona, appears in the top ranks. The Phoenix-area city earns its place on the podium with an impressive, balanced performance across the four key categories we analyzed.

Some highlights (er, lowlights) of the least buyer-friendly cities, concentrated in the Golden State, include:

• Burbank, California, has the least affordable housing market in America. The typical home sells for a cool $771 per square foot, 12th most expensive nationwide. The real problem is the affordability ratio, which we used to compare the typical three-bedroom home value with median income: Burbank’s is 14-to-1. The median income, at $85,517 a year, is comparable to that in top-ranked Cape Coral, but the typical home value tops $1.2 million.
• Santa Clara, California, has the most competitive housing market in California and the second-most competitive nationwide. Homes are in short supply: In January 2026, there were just 48 homes on the market for every 100,000 residents of this Bay Area city. With the tightness of the market, nearly two-thirds of homes (65%) are selling above list price — the highest rate in the nation.

How housing markets vary by city size

Below, check out the overall rankings of all the cities we analyzed, plus rankings broken down by market size. It’s worth noting that the Phoenix, Arizona, metro is the only area represented across the top 10 in each market size.

For a deeper dive into how your city compares with others of a similar size, toggle to the relevant tab for small, midsize and large markets. Then, read on for a closer look at the relationship between a housing market’s size and its friendliness to prospective homebuyers.

Small markets offer strong livability, less competition

Overall, small cities dominate the rankings. Among the 272 cities we researched and compared, 196 are small, stand-alone cities or suburbs of larger metros, with populations less than 250,000.

But don’t let their small stature fool you — many of these cities punch above their weight class, with housing markets that offer big opportunities for buyers.

Florida’s smaller cities stand out for their high housing inventory. While it may be a tough pill for sellers to swallow, it shouldn’t come as a surprise — Florida has been one of America’s homebuilding hot spots. That increased supply necessarily dilutes demand, tipping the scales in favor of buyers.

Some of these small markets could be considered underrated housing markets, or even hidden gems. Consider Jackson, Mississippi, where the housing market is especially friendly for buyers on a budget. The City with Soul boasts a low-competition buying environment with astounding affordability. The typical three-bedroom home value ($87,547) is just twice the median household income ($44,516), and the median sale price per square foot is only $68 — both the lowest figures in the U.S.

Small markets have higher homeownership rates than midsize and large cities. According to our research and analysis, they also tend to score well for livability, with low crime rates and highly rated public schools.

Regionally, small markets in the South and Sun Belt tend to rank better for buyers, while small housing markets in California are more expensive and competitive.

Large markets remain competitive for buyers

Larger cities tend to have lower housing inventory per capita and more competition. It’s not surprising that major cities like New York City and Los Angeles rank among the least accessible to buyers, given their tight markets and sky-high home prices.

However, prospective buyers looking to put down roots in an urban environment still have plenty of options. Cities like Jacksonville, Oklahoma City, Indianapolis and Louisville offer more attainable housing markets without sacrificing that big-city access to job opportunities, amenities and entertainment. For city slickers looking to purchase a home in the Sun Belt, major cities like Houston and Phoenix stand out as more buyer-friendly options.

However, it may be worth keeping in mind that larger cities tend to have higher crime rates and lower public school quality compared with smaller markets. If safety and school stats are on your nonnegotiables list, you may find your best fit in a neighboring suburb or smaller city — think Naperville, Illinois, (39th most buyer-friendly) over nearby Chicago (No. 182).

Midsize markets strike a balance for buyers

A midsize market might be the Goldilocks, just right option for a homebuyer seeking a second-tier city or a larger suburb of a major metro.

Our analysis found that midsize markets tend to strike a sweet spot between the extremes: Many offer a moderate balance of affordability (e.g., incomes keeping up with home values) and strong quality of life.

Take Lubbock, Texas. Ranked 16th most buyer-friendly overall, the Hub City ranks in the top 10% of cities in affordability and low competition; in January 2026, no homes in Lubbock sold above asking price, a sign of lower competition that kept buyers closer to their budgets. Lubbock also has strongly rated public schools.

Midsized housing markets are generally less competitive than markets in large cities, but more competitive than smaller markets.

However, midsize markets on the coasts — including cities in New York, New Jersey, California and Hawaii — tend to rank lower for buyers, with steeper affordability ratios and more competition for housing.

Methodology

The ConsumerAffairs Research Team identified the best housing markets for buyers by analyzing 272 U.S. cities with populations of at least 100,000 across metrics in four primary categories. For each metric, the most buyer-friendly city was awarded the maximum score, with other cities getting relative scores. We added category scores to get a total score out of 100 for each city; cities with higher scores are more buyer-friendly.

Here are the categories and metrics we analyzed:

• Housing market competitiveness (40 points): This category includes available housing inventory, measured as homes listed for sale per 100,000 people (15 points); the percentage of homes sold above list price (15 points); and the percentage of housing units that are owner-occupied (10 points). Data is from Redfin (January 2026) and the U.S. Census Bureau (2024).
• Affordability (30 points): This category includes an affordability ratio, calculated by dividing the typical value of a three-bedroom home (Zillow ZHVI) by the median household income (20 points), and the median sale price per square foot (10 points). Data is from Zillow (January 2026), Redfin (January 2026) and the U.S. Census Bureau (2024).
• Home size (15 points): This category includes the median square footage of homes pending sale (15 points). Data is from Redfin (December 2025) and is reported at the metro level.
• Livability (15 points): This category includes violent crime and property crime rates per 1,000 people (5 points each) and public school quality (5 points). Data is from NeighborhoodScout (2024) and Niche (2026).

In addition to ranking the cities overall, we segmented them into three groups based on population to represent different market sizes:

• Small markets: 100,000 to 249,999 people
• Midsize markets: 250,000 to 499,999 people
• Large markets: 500,000 or more people

Reference policy

We love it when people share our findings! If you do, please link back to our original article to credit our research.

Questions?

For questions about the data or if you'd like to set up an interview, please contact dedens@consumeraffairs.com.