Texas and Sun Belt Cities Dominate 2026 Best Real Estate Markets Ranking as Frisco Claims Top Spot

Frisco and McKinney, Texas, secured the top two positions in WalletHub’s 2026 Best Real Estate Markets report, propelled by rapid residential construction, sustained job growth, and high rates of home-price appreciation across Sun Belt cities.

According to WalletHub’s 2026 Best Real Estate Markets report released Wednesday, Frisco, Texas, took the top spot and was followed by neighboring McKinney, Texas. Murfreesboro, Tennessee; Durham, North Carolina; and Denton, Texas, rounded out the top five.

Other top 10 contenders included Cary, North Carolina; Madison, Wisconsin; Allen, Texas; Charlotte, North Carolina; and Irvine, California.

“Texas and other Sun Belt markets dominate the top of the ranking, highlighting the combination of housing-market strength and helpful economic conditions found in many of these cities,” WalletHub writer and analyst Chip Lupo told Fox News Digital. “These markets tend to perform well across factors such as home-price appreciation, new housing construction, building-permit activity, affordability and job growth.”

Texas cities consistently ranked in the Top 10 spots for the best real estate markets in America, according to new WalletHub data. (Getty Images)

Nearly 47% of the housing units in Frisco were built between 2010 and 2024, reflecting residential development supported by major corporate headquarters relocations and a median household income exceeding $145,000, according to U.S. Census Bureau figures. McKinney ranked second overall with a 40% new-home construction rate, the 10th-highest building-permit activity nationwide, and strong local job growth.

McKinney, Texas, took the No. 2 spot for America’s best real estate markets. (Getty Images)

To determine the rankings, WalletHub evaluated 300 U.S. cities across 17 key metrics divided into two main categories: “Real-Estate Market” health, weighted at 80 points, and “Affordability & Economic Environment,” weighted at 20 points. Major coastal markets ranked significantly lower overall due to strict inventory limits and high cost barriers, placing New York at No. 231, Los Angeles at No. 237, and San Francisco at No. 273.

Lupo stated that the gap between high-performing southern markets and large coastal centers centers on housing supply matching demographic demand. When new construction consistently lags behind population and employment growth, housing affordability pressures become difficult to overcome, restricting homeownership even in areas with high average incomes.

Bourbon Street in New Orleans’ famed French Quarter neighborhood. (Getty Images)

At the bottom of the 300-city evaluation, New Orleans ranked last overall, preceded by Baltimore at No. 299. Cities ranking at the bottom face weak housing fundamentals, including slower home-price growth, elevated home insurance costs, and ongoing difficulty attracting prospective buyers to build long-term home equity.