Markets to Watch in 2026

As we progress through 2026, we are noticing that housing momentum isn’t showing up everywhere, it’s showing up in very specific markets. Residential and multifamily development is becoming more targeted, with builders and developers focusing on regions where demand, affordability, and feasibility still line up.

Instead of chasing volume for volume’s sake, many teams are being more intentional about where they grow. Markets with tight inventory, steady job bases, and manageable development costs are rising to the top, while others remain cautious. For industry leaders and recruiters, knowing which markets are gaining traction is quickly becoming a competitive advantage.

Below are a few regions worth keeping a close eye on as development activity continues to shift and refine.

Midwest Markets to Watch: Supply Constraints Are Driving Opportunity

The Midwest is quietly becoming one of the more interesting housing stories of the year. According to HousingWire, several Midwest markets, especially smaller metros and college towns, are coming in hot due to extremely low inventory and consistent buyer demand. In Bloomington-Normal, Illinois, for example, housing inventory sits at just 0.4 months, a clear signal that supply simply isn’t keeping up.

What’s notable here is that affordability alone isn’t the full story. These markets are tight because homes aren’t available, not because buyers have disappeared. Cities like Lawrence, Kansas; Sandusky and Mansfield, Ohio; Kankakee-Bradley, Illinois; and Bay City, Michigan are ranking high due to strong activity and limited supply, even if price growth remains measured.

College towns and smaller employment hubs continue to punch above their weight. With built-in population stability and steady demand, they’re attracting renewed interest for residential expansion, suburban development, and workforce-oriented multifamily projects. For builders, these Midwest markets offer consistency. For recruiters, they signal growing demand for experienced talent as pipelines quietly expand.

Sun Belt Standouts: Growth Is Shifting, Not Slowing

The Sun Belt is still very much in play, but the story this year looks a little different than it did a few years ago. Texas, Florida, the Carolinas, Arizona, and parts of the Southeast continue to see population growth and job creation, keeping both residential and rental demand intact.

What’s changed is where development is happening within these markets. Suburban and secondary submarkets are getting more attention as land availability, pricing, and infrastructure push activity outward. Single-family construction remains active in master-planned communities, while multifamily development is leaning more toward suburban, garden-style, and build-to-rent projects that align with today’s renter preferences.

Rather than a slowdown, this is a reset. Developers are being more disciplined, focusing on projects that pencil and markets that can support long-term absorption. The Sun Belt’s growth story is still strong, it’s just more strategic than before.

What This Market Activity Means for Development and Talent

As development activity picks up in these select markets, hiring demand is following closely behind. Builders and developers are actively looking for land acquisition leaders, project managers, superintendents, development managers, and construction executives who know how to operate efficiently in growth environments.

Across both the Midwest and Sun Belt, experience is becoming a bigger differentiator. Teams want professionals who understand local entitlement processes, can manage costs in tight labor markets, and know how to scale responsibly. Multifamily experience, especially in suburban, mixed-use, and build-to-rent projects, continues to stand out.

For recruiters, keeping an eye on where development is expanding isn’t just market insight, it’s talent strategy. The companies that stay ahead of these regional shifts will be better positioned to hire early, build stronger teams, and capitalize on the opportunities shaping the 2026 housing landscape.

Staying Ahead of the Markets Starts with the Right Talent

As residential and multifamily development continues to concentrate in specific markets, having the right leadership in place early can make all the difference. Whether it’s navigating tight inventory in Midwest growth markets or scaling efficiently in fast-moving Sun Belt metros, strong teams are what turn opportunity into execution.

This is where proactive talent strategy matters. If you’re planning expansion, evaluating new markets, or preparing for increased development activity in 2026, now is the time to assess your leadership bench. Staying ahead of market shifts, and having the right people ready to lead them, positions your organization for long-term success as the next phase of housing growth takes shape.

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