Ever wondered where your money could work hardest in the housing market over the next few years? With all the talk about market shifts, it's easy to overlook the hidden gems where home values are still set to soar. But I’ve got my eye on where Zillow says the real action will be.

While Zillow's national forecast predicts a modest 1.7% rise in home values for 2026, some select zip codes are projected to see significantly higher appreciation, with their home prices climbing by as much as 7-8% by the end of 2026, making them prime spots for potential homeowners and savvy investors who know where to look.

Real estate can feel like a big puzzle, especially when national headlines paint a picture of slow growth. You read about cooling markets, rising interest rates, and affordability challenges. It’s enough to make anyone hesitant. But from my years of observing these cycles, I’ve learned one crucial thing: real estate is inherently local. What's happening in one neighborhood can be vastly different from what's unfolding just a few miles away. That's why diving into specific market data, especially from a reputable source like Zillow, is so vital.

20 Hottest ZIP Codes for the Strongest Home Price Growth in 2026

Before we zoom in on the hottest spots, let's briefly touch on Zillow's overall forecast for the housing market in 2026. This gives us the essential context for understanding why the select zip codes we'll discuss are truly remarkable.

According to Zillow’s latest projections, the national housing market in 2026 is set for a gradual recovery marked by small, but significant, wins. Here’s a quick rundown of what they anticipate:

• Modest Home Value Appreciation: Nationally, home values are expected to rise by 1.7% in 2026. This is a far cry from the double-digit gains we saw during the pandemic boom years. It suggests a more balanced market where supply, no longer as tight, gives buyers a bit more leverage.
• Pickup in Existing Home Sales: After a couple of slower years, Zillow forecasts existing home sales to reach 4.3 million in 2026, representing a solid 5.2% year-over-year gain. This surge is largely attributed to forecasted lower mortgage rates making homeownership more accessible and unlocking pent-up demand. The recovery is expected to concentrate in regions like the Southeast and West, where demand is especially sensitive to borrowing costs.
• Improved Affordability (Gradually): Lower interest rates should slowly ease the burden of housing costs. However, Zillow emphasizes that this will be a gradual improvement, not a sudden shift.
• Rental Market Dynamics:
  • Single-Family Rents: These are projected to increase by 1.6% year-over-year by the end of 2026.
  • Multi-Family Rents: Here's an interesting one – multi-family rents are expected to decline by 1% year-over-year by the end of 2026. This is due to high vacancies and a significant influx of new supply.

So, the national picture is one of slow and steady progress, with buyers gaining a little more breathing room and sellers still building equity, just at a more sustainable pace. Yet, even within this measured outlook, certain localized markets are positioned for considerable gains. This tells me that while patience is key nationally, strategic investment in specific areas can still yield impressive returns.

Here Are the 20 Hottest Zip Codes for 2026

This is where it gets exciting! Despite the broader national trends, Zillow's data points to specific geographical pockets where local factors are expected to ignite home price growth significantly higher than the national average.

Let's dive into the 20 zip codes where home prices are projected to rise the most by the end of 2026:

Zip Code	City	State	Metro Area	Key County	Projected Growth by End 2025 (%)	Projected Growth by End 2026 (%)
11739	Great River	NY	New York-Newark-Jersey City	Suffolk County	4.5	8.2
81656	Woody Creek	CO	Glenwood Springs	Pitkin County	1.7	7.8
81615	Snowmass Village	CO	Glenwood Springs	Pitkin County	1.6	7.7
54416	Bowler	WI	Shawano	Shawano County	2.6	7.5
8232	Pleasantville	NJ	Atlantic City-Hammonton	Atlantic County	1.4	7.4
61769	Forrest	IL	Pontiac	Livingston County	3.0	7.4
83340	Ketchum	ID	Hailey	Blaine County	1.8	7.3
31097	Yatesville	GA	Thomaston	Upson County	1.5	7.3
54486	Shawano	WI	Shawano	Shawano County	2.2	7.1
60921	Chatsworth	IL	Pontiac	Livingston County	1.7	7.1
30285	The Rock	GA	Thomaston	Upson County	1.4	7.0
66105	Kansas City	KS	Kansas City, MO-KS	Wyandotte County	2.6	6.9
54408	Aniwa	WI	Wausau-Weston	Marathon County	2.7	6.9
60929	Cullom	IL	Pontiac	Livingston County	2.6	6.9
8402	Margate City	NJ	Atlantic City-Hammonton	Atlantic County	1.1	6.8
54414	Birnamwood	WI	Shawano	Shawano County	2.1	6.8
8406	Ventnor City	NJ	Atlantic City-Hammonton	Atlantic County	1.1	6.7
63382	Vandalia	MO	Hannibal	Ralls County	1.8	6.7
54139	Lena	WI	Green Bay	Oconto County	1.5	6.7
54128	Gresham	WI	Shawano	Shawano County	2.5	6.7

(Data source: Zillow, as of end November 2025 forecast reporting for 2026 projections.)

What Makes These Areas Special? My Insights into Local Growth Factors

Looking at this list, something immediately jumps out at me. We aren't just seeing a single type of market or region dominating. Instead, there's a fascinating mix of locales, and that’s precisely what makes these predictions so insightful. As someone who’s constantly tracking housing trends, here are my thoughts on the underlying drivers for these specific hot spots:

Resort and Lifestyle Destinations

Notice the strong presence of places like Woody Creek, CO (81656), Snowmass Village, CO (81615), and Ketchum, ID (83340). These are iconic resort towns. What I've consistently observed is that properties in such high-demand vacation and lifestyle destinations often defy broader market trends. They cater to a different buyer pool – often those looking for second homes, investment properties, or a permanent move to a high-quality-of-life area. These buyers typically have strong financial footing, making these markets less susceptible to minor interest rate fluctuations. The appeal isn't just a house; it's a lifestyle investment.

Emerging Rural and Exurban Hubs

A significant number of these top zip codes are in less densely populated areas, often near smaller regional metros, such as the numerous entries from Wisconsin: Bowler (54416), Shawano (54486), Aniwa (54408), Birnamwood (54414), Lena (54139), and Gresham (54128). Also, parts of Illinois like Forrest (61769), Chatsworth (60921), and Cullom (60929), or even Georgia's Yatesville (31097) and The Rock (30285).

My take here is that these areas likely represent a powerful combination of factors:

• Affordability Seekers: As housing costs in major cities remain high, people are willing to move a little further out to secure more space for their money.
• Remote Work Migration: The shift to remote and hybrid work has untethered many from traditional office locations, allowing them to choose quality of life over commute times. These quieter towns offer peace, green spaces, and often tighter-knit communities.
• Undiscovered Value: Many of these locations might be “undiscovered” gems, catching the eye of investors and new residents before widespread market recognition drives prices sky-high. When larger capital starts flowing into these areas, the growth can be explosive.
• Local Investments & Growth: Sometimes, localized economic development, new businesses, or infrastructure improvements can spark significant interest in areas that were previously overlooked.

Proximity to Major Metros with Unique Appeal

Great River, NY (11739), while part of the vast New York-Newark-Jersey City metro area, likely benefits from its specific location in Suffolk County. This could imply a desirable suburban or exurban feel within commuting distance of one of the world's largest economic centers. It's often the desirable pockets just outside the immediate hustle and bustle that see strong appreciation as city dwellers look for more space without sacrificing access.

Similarly, the New Jersey zip codes – Pleasantville (8232), Margate City (8402), and Ventnor City (8406) – are all within the Atlantic City-Hammonton metro area. My experience suggests these are likely coastal communities or areas benefiting from renewed interest in shore properties, perhaps buoyed by tourism, second-home demand, or even year-round residents seeking a different pace of life. Even when broader markets temper, demand for prime coastal real estate often remains strong.

Regional Economic Performance

Finally, Kansas City, KS (66105) stands out as a more urban entry. Kansas City, Missouri-Kansas is a strong, growing metro area. Zip codes within such economically vibrant regions, especially those undergoing revitalization or boasting strong community assets, can see impressive gains due to sustained local demand and investment.

My Personal Advice: Don't Just Look, Understand

What I gather from this Zillow data is that the overall market is indeed moderating, but opportunities are far from gone. In fact, a “modest” national market often means greater differentiation in local performance. This is where savvy investors and homebuyers can really shine.

• Do your homework: Don't just pick a zip code off this list. Dig deeper. What are the specific local employment trends? Are there new businesses or developments planned? What’s the quality of schools? Are there unique natural amenities or recreational opportunities?
• Consider the ‘Why': Ask yourself why this area might be growing faster than others. Is it a lifestyle magnet? An affordability escape? A burgeoning economic hub? Understanding the “why” will give you a clearer picture of sustainability.
• Long-Term View: While these are projections for 2026, real estate is generally a long-term play. Invest with the intention of holding for several years if possible to ride out any short-term fluctuations.
• Local Expertise is Key: My opinion is that partnering with a local real estate agent who truly understands these specific zip codes is invaluable. They can offer granular insights that national data sometimes misses.

The bottom line for me is this: Even in a market settling into a more “normal” pace, there are always areas that outperform. The trick is identifying them early and understanding the unique drivers behind their potential success. These 20 zip codes, according to Zillow's projections, offer a compelling look into where that success might be found in 2026. This isn't about blind speculation; it's about informed, strategic decision-making in a dynamic market.