Northeast Real Estate Markets Surge Ahead as 2026 Approaches

As the real estate landscape evolves, the Northeast is set to emerge as a prominent player in 2026, according to the latest findings from a report by PwC and the Urban Land Institute (ULI). The consulting firm’s Emerging Trends in Real Estate report highlights a shift in market dynamics, with cities near major business hubs such as Jersey City and Brooklyn witnessing significant improvements in their rankings.

The report’s insights are based on a survey of over 1,000 industry experts, who evaluated various markets on their investment and development potential. While the Sun Belt region has often been recognized for its affordability and growth, the Northeast’s appeal is gaining traction as a viable option for investors and homebuyers alike.

Northeast Markets Rise in Rankings

PwC partner Andrew Alperstein noted that the Northeast features four cities in the top 10 list of markets to watch. He emphasized that this trend reflects a resurgence of interest in urban living, particularly as professionals return to office work. “It’s really a story around New York City and the back-to-office movement we are seeing,” Alperstein explained. The accessibility and attractiveness of locations like Brooklyn and Jersey City appeal to younger demographics seeking affordable living close to the city.

Jersey City stands out in this report. It has made the most notable leap among the top 10 markets, climbing 17 spots from the previous year. The city’s strategic location near Manhattan has made it an attractive option for those returning to work. Recent investments have bolstered its residential market, with approximately $177.4 million allocated in the first half of 2025, predominantly for apartment developments, as reported by CBRE Research and MSCI.

A Shift in Southern Markets

While Southern markets like Austin enjoyed rapid growth in recent years, they have started to cool off, primarily due to a lack of economic diversity. Alperstein remarked, “There was almost a little bit of an exuberance around Austin… it’s probably a little bit too technology-centric.” Only two Texas cities managed to secure a place in the top 10, highlighting a shift in investor priorities toward markets that offer a broader range of employment opportunities.

Cities recognized as thriving in 2026 share common characteristics: affordability, diverse job markets, and a rich array of amenities. The ranking also includes notable locations such as Nashville, Miami, and Dallas-Fort Worth, each contributing to a dynamic real estate landscape.

As the year progresses, real estate professionals and potential investors are advised to closely monitor these evolving trends. The combination of strategic investments and a return to urban living is reshaping perceptions of the Northeast as a robust real estate market, setting the stage for significant developments in the coming years.