A real estate company has released its projections for the hottest United States housing markets in 2026.

The Redfin report published on Dec. 2 anticipates U.S. homebuyers will begin to get some relief in the new year as affordability improves and income growth begins to outpace home-price growth.

"Next year will mark the beginning of a long, slow recovery for the housing market," Redfin said in the report.

In August, the U.S. Federal Housing Finance Agency reported that U.S. housing prices rose 2.9% year over year and were unchanged quarter over quarter. The housing market has experienced annual appreciation each quarter since 2012, the agency said.

The five U.S. states with the highest annual appreciation were New York, Connecticut, New Jersey, Mississippi and Illinois. Holiday

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