These 10 Job Markets Are Setting the Stage for Strong Housing Demand in 2026

Of the numerous factors that impact the housing market, one is emerging as particularly important for 2026: Employment.

See related: Where Americans Are Moving: New Migration Report Highlights Shifting Housing Trends

Employment strength is the driver behind buyer confidence, income growth, and, ultimately, housing demand. Conversely, slower hiring, layoffs, and rising unemployment have a direct correlation to weaker housing markets.

See related: 5 Reasons South Carolina Is Becoming One of the Hottest Housing Markets in America

With this logic, NewHomeSource parent company Zonda produced a list the top employment markets to watch in 2026. Each market is likely to have a strong housing market in 2026 given the strength of AI employment, manufacturing investment, health care employers, or other employment-related factors.

See related: The 2026 Markets to Watch: Where Prices Are Cooling and Job Trends Are Shifting

The resulting Markets to Watch (MTW) Index highlights markets where employment growth, capital investment, and demographic momentum intersect to influence future housing demand. Without spending too much time detailing the methodology, data, adjustments, and assumptions inherent to the MTW Index, below are Zonda’s top ten employment markets to watch in the year ahead.

1. Charleston. Charleston, South Carolina is supported by strong employer diversification, a desirable coastal location, and a growing tech sector. A potential limiting factor is the market economy’s reliance on tourism as well as the rising cost of living due in part to an increase in construction activity.

2. Columbia. The capital city in South Carolina has a central location, access to four major airports, and an economy supported by its proximity to the University of South Carolina.

3. Columbus. The lone non-Carolina market in the top five, Columbus, Ohio is undergoing a significant economic and cultural identity shift. An expanding high-income job base and the strong multiplier effects tied to Intel’s Ohio One investment support optimism for the employment market in the city. Investment in retail, food, and urban amenities are potential other green shoots in the economy.

4. Raleigh. The North Carolina market is home to a growing, younger workforce and a strong research and innovation ecosystem that is fueling job creation across technology, life sciences, and professional services. However, with an increase in construction, the market is prone to rising home prices that may impact affordability.

5. Charlotte. Strong corporate clusters and a large white-collar workforce in finance and professional services is supporting short- and long-term employment growth in the market. Similarly to Raliegh, this North Carolina market is also experiencing rising prices due to its growth.

6. Boise. The pro-business climate and low operating costs have attracted large-scale manufacturing investment as well as entrepreneurial activity. A reason for concern is the market’s potential sensitivity to technology sector cycles and the threat of AI-related layoffs.

7. Louisville/Jefferson County. This market has strong national logistics connectivity and a reasonable tax environment for businesses. In addition to traditional sectors of employment, the market is also home to a growing culinary scene. Despite its inclusion on the list, labor force growth is comparatively modest.

8. Phoenix. The Phoenix economy is supported by a robust manufacturing ecosystem and a strong migration base that continue to expand the workforce. The market is home to strong high-income employment growth, too. Reasons for caution include the market’s reliance on in-migration and exposure to shifts in immigration policy.

9. Provo. The Utah market is home to a growing high-tech hub, led by investments by Apple and Texas Instruments. The semiconductor sector is also strong in the market.

10. Philadelphia. The Pennsylvania market is anchored by robust health care employment and a growing MedTech ecosystem, driving stable job growth. Like Louisville, the market is home to slower overall labor force growth than comparable peer markets.