According to WalletHub’s 2026 Best Real Estate Markets report released Wednesday, Texas cities are dominating the rankings for the healthiest housing markets in the United States, with Frisco, Texas, securing the top spot, followed by McKinney, Texas. Other cities in the top five include Murfreesboro, Tennessee; Durham, North Carolina; and Denton, Texas. The top ten also feature Cary, North Carolina; Madison, Wisconsin; Allen, Texas; Charlotte, North Carolina; and Irvine, California [1].
WalletHub analyst Chip Lupo highlighted that Texas and Sun Belt markets excel due to strong housing-market fundamentals and favorable economic conditions. These cities perform well across metrics such as home-price appreciation, new housing construction, building-permit activity, affordability, and job growth. Specifically, nearly 47% of housing units in Frisco were built between 2010 and 2024, while McKinney boasts a 40% new-home rate, the 10th-highest building-permit activity, and one of the best job growth rates among the ranked cities [1].
In stark contrast, major coastal cities like New York (No. 231), Los Angeles (No. 237), and San Francisco (No. 273) rank significantly lower. These cities face challenges including poor affordability and weaker economic-environment scores, making homeownership more difficult despite high incomes and economic opportunities. The report emphasizes that the health and trajectory of the housing market, rather than affordability alone, are key to the rankings. Coastal cities struggle to keep housing supply in pace with demand, leading to persistent affordability pressures [1].
The report also notes that taxes are only one part of the equation, with broader housing conditions and economic strength being more influential in determining market rankings. New Orleans ranked last in the report, followed by Baltimore, underscoring the wide disparity in housing market health across the country [1].
CONCLUSION
Texas and Sun Belt cities are outperforming coastal hubs in housing market health, driven by robust construction, job growth, and affordability. Coastal cities continue to face significant challenges, particularly in keeping housing supply aligned with demand. The report suggests that long-term market strength depends on a combination of healthy housing fundamentals and economic conditions.