Indianapolis became the most ‘buyer-friendly’ market in 2026

Indianapolis does Zillow’s Top Buyer Friendly Market for 2026thanks to favorable trends in short- and long-term home value growth, affordable monthly mortgage costs for average earners with a 20 percent down payment, and a gentrifying competitive landscape.

Homebuyers in Indiana’s capital face a market with a typical home value of $283,040. Monthly (+0.2 percent) and annual (+2.9 percent) changes in home values ​​are soft but stable, and the average earner will spend 26.9 percent of their monthly income on a mortgage – a share that is within the generally accepted affordability threshold of 30 percent.

“Home buyers have room to breathe in these buyer-friendly markets,” Orphe Divounguy, senior economist at Zillow, said in the report. “Less competition gives shoppers more time to decide and more leeway to negotiate, contributing to a less stressful shopping experience.”

Homebuyers can find other affordable gems in the South, Midwest and Mid-Atlantic, including Atlanta; Charlotte, North Carolina; Jacksonville, FL; Oklahoma City; Memphis, Tenn.; Detroit; Miami; Tampa, FL; and Pittsburgh in the top 10.

Pittsburgh ($217,499), Memphis ($237,882), Oklahoma City ($238,791) and Detroit ($254,355) have the lowest typical home values.

Meanwhile, Charlotte (+0 percent), Jacksonville (+0 percent), Atlanta (-0.1 percent), Miami (-0.1 percent) and Tampa (-0.1 percent) saw flat or declining month-over-month typical home value growth in December, reflecting the potential for homebuyers to hit a bump as buying and selling activity experiences a winter lull.

However, the projected annual change in home values ​​in these areas remains solid and could reach 2.6 percent.

When it comes to mortgage payments as a percentage of an average earner’s monthly income, very few markets meet the affordability threshold.

Besides Indianapolis, the only markets with shares below 30 percent are Oklahoma City (26.8 percent), Memphis (27.5 percent), Detroit (25.9 percent) and Pittsburgh (22.2 percent). Meanwhile, middle-income homebuyers in Miami can expect to spend nearly half – 46.7 percent – ​​of their income on their monthly mortgage.

Divounguy said the report’s findings reflect a market that offers “a good entry point” for homebuyers ready to make a move.

“Today’s cooling prices, combined with expected growth in the future, provide a good entry point for those who have been waiting for the right time,” he said. “For sellers, strategic pricing from the start becomes much more important when buyers have the power.”

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