Ohio Housing Markets Land in the National Spotlight for 2026

By Melissa Dittmann Tracey

After several years of sluggish activity, the housing market is showing early signs of building momentum for 2026—and Ohio is emerging as a national standout. Once overshadowed by faster-growing Sun Belt metros, several Ohio cities are now appearing on lists of the top housing markets to watch, buoyed by steady job growth and housing stock that aligns more closely with buyer budgets.

Columbus, for example, was named one of the National Association of REALTORS^® 10 Home Buying Hot Spots to Watch in 2026,” attributed to its strong economic fundamentals, expanding job market and improving alignment between home prices and local incomes. What’s more, at least 41,000 additional households in the region could qualify for a median-priced home if mortgage rates drop to 6%—which is largely predicted to happen this year. Also, the metro’s millennial-heavy population—37.5% of households—could bode well for sustained housing demand.

Realtor^®.com ranked Toledo, Ohio, No. 4 on its list of top housing markets for 2026. And Robert Dietz, chief economist at the National Association of Home Builders, sees big opportunities throughout Ohio for builders in the new-home market this year. “Whether it's Columbus, Ohio, or Indianapolis or Kansas City, some of these markets that have long been known as more affordable—those near major universities, and frankly colder than other parts of the country—are great candidates for some of the AI and technology investment, where managing heat and energy costs is a bigger deal,” he says. “We see outsized growth in some of those markets. Also, in thinking about the resale market, I know many other analysts also have pointed to markets in Ohio seeing outsized strength. We believe there could be some gains in the Midwest in 2026.”

Ohio’s affordability advantage also is getting spotlighted for first-time buyers. Garfield Heights earned a spot on realtor.com’s list of top 10 housing markets for first-time buyers in 2026. The city’s median listing price is $140,000, and the area offers affordability to buyers ages 25 to 34 who earn a median income of $54,000. They would spend just 17.2% of their income on mortgage payments, well-below the 30% threshold that most financial analysts use to measure affordability. As such, in a national market where affordability remains strained, communities like Garfield Heights are giving younger buyers realistic entry points into homeownership.

Here are more insights into the 2026 housing market.

Mortgage Rates Could Unlock More Buyers

Economists believe that mortgage rates remain one of the biggest factors shaping the year ahead. NAR is forecasting the 30-year fixed rate to average around 6% in 2026, down from roughly 7% at the start of 2025. Even modest declines can meaningfully improve affordability. On a $500,000 home with a 30-year mortgage at 7% and a 10% down payment, monthly payments are $3,895. Drop the rate to 6.25%, and payments fall to $3,672—a $223 monthly savings, according to Lending Tree.

NAR estimates that a one-point drop in rates could expand the pool of qualified buyers by millions nationwide, with attainable housing markets like in Ohio expected to see some of the earliest gains.

Inventory Improves, Competition Evolves

Inventory is rising across Ohio, giving buyers more options and flexibility. Fewer bidding wars and longer decision timelines signal a shift away from the frenzy of recent years. For sellers, preparation is becoming key: homes that are well-priced, well-presented and professionally marketed will attract serious buyers—while housing experts warn that overpricing risks longer time on market and eventual price reductions.

Housing Outlook Remains Optimistic, Notably in the Midwest

While Ohio shines, national indicators point to a broader housing rebound. Lawrence Yun, NAR’s chief economist, forecasts a 14% increase in existing-home sales nationwide in 2026, following three years of below-average performance. New-home sales also are expected to rise, signaling a market gradually rebalancing from the extremes of the pandemic-era boom.

In late November, the Midwest was posting some of the fastest growth in new sales contracts nationwide, outpacing other parts of the country. “The Midwest shined above other regions due to better affordability, while contract signings retreated in the more expensive West region,” Yun noted at the time. The Midwest region’s median existing-home price, $319,400 in November, remains below the South ($361,000), Northeast ($480,800) and West ($618,900).  “First-time buyers fared better in the Midwest because of the plentiful supply of affordable houses and in the South because there is sufficient inventory,” Yun said.

With affordability, strong local economies and expected improving mortgage rate conditions, Ohio is stepping into the national spotlight, offering buyers and sellers a chance to participate in a housing rebound—one that may finally mark the start to better days ahead in real estate for 2026.

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