Texas earned a composite score of 7.3 based on key Redfin indicators, placing the state dead last in a new analysis from Construction Coverage. The study points to rapid home price growth, rising mortgage rates and return-to-office mandates as key factors behind the market’s slowdown.
The study equally weighed year-over-year change in median sale price, the share of homes sold above the asking price, median days on market, average sale-to-list price ratio and the share of listings with price drops in over 850 U.S. cities and across all 50 states.
Three Texas cities ranked near the bottom of the list, with one landing as the nation’s second-worst housing market in 2026. Austin ranked 51st out of 52 large cities, earning a composite score of 17.2 and signaling a relatively weak demand amid a cooling national market.
San Antonio rounded out the bottom 15 in the 48th spot, alongside Fort Worth at 44, Arlington at 40 and Houston at 39.
Northeastern states dominated the rankings, claiming seven of the nation’s top 10 hottest housing markets. Connecticut led the country, followed by New Jersey and Rhode Island.
California also ranked among the most active markets, making it into the top 15 despite its high cost of living. San Francisco, San Jose and Oakland stood out among the hottest markets across major U.S. cities. The study attributes those trends to densely populated cities in the Northeast and restrictive zoning laws, which limit new construction and keep supply tight, driving prices higher.