Date Published: May 2026
Based on 2025 and early 2026 data, the highest volume of new mortgage activity is concentrated in the South and West, driven by strong new construction, job growth, and high migration rates.
Top Cities for New Mortgage & Home Activity (2025–2026)
- Fayetteville, AR: Ranked as a top market for new construction, with new homes making up over 40% of sales listings.
- Boise, ID: Leads in new construction share, with over 51% of for-sale listings being new homes.
- Dallas-Fort Worth, TX: Consistently ranks at the top for new home sales, population growth, and high demand.
- Austin, TX: Features high mortgage demand and one of the fastest-growing inventories, despite slowing slightly from previous peaks.
- Nashville, TN: A top market for new construction and rapid population expansion.
- Phoenix, AZ: Continues to see strong new home sales and increased housing supply.
- San Antonio, TX: Highly popular for new, affordable mortgage opportunities.
Key Mortgage Trends & Hotspots
- Rising Markets: Colorado Springs, Miami, and Richmond, VA are seeing high year-over-year growth in home sales.
- First-Time Buyer Hubs: Garfield Heights, OH (Cleveland area), Pittsburgh, PA, and St. Louis Park, MN are hotspots for young buyers (25–34) due to lower price points.
- High-Value Markets: California leads in the highest average mortgage balances, particularly in cities like Montecito and Hidden Hills.
- Gen Z Activity: The highest concentration of mortgage applications from younger buyers is in Des Moines, IA and Omaha, NE.
- Upcoming Trends: Markets in the Midwest, such as Columbus, OH and Indianapolis, are emerging as new hotspots due to high affordability.
Fastest Growing Inventory
While new mortgage activity is high, inventory is increasing fastest in Tampa, FL (+82.7%), Austin, TX (+57.6%), and Denver, CO (+56.7%) as of late 2024, providing more options for prospective buyers.
According to the National Association of Realtors, the Top Housing Market Indicators are:
- Millennial Household Presence – markets with a strong base of younger households have more built in demand as rates fall.
- Household income growth
- Job growth
- Increase in qualified households with lower rates
- Strong domestic migration as a share of the population
- Listings aligned with incomes
- Mortgage payment vs rent (Markets where buying is closing the gap over renting)
- Growth in single family permits
- Increased market originations, especially with first time buyers
What do you think – do you agree with these findings? Any “hot spots” you would add to this list?
By Tami Coffey
