Copyright CNBC
In November, PwC and the Urban Land Institute released their annual Emerging Trends in Real Estate 2026 report, ranking the top 10 markets to watch in 2026. To rank the markets, the two brands surveyed more than 1,700 real estate investors, developers, lenders and advisors in the U.S. and Canada. Each industry participant was then asked to rate markets for investment and development prospects in 2026 across property types. They were also asked to rate aspects of their local markets. "Our primary theme was around navigating the fog. We use that analogy because there's a lot of uncertainty both from a macroeconomic and real estate perspective," Andrew Alperstein, partner with PwC’s US real estate practice, tells CNBC Make It. "There's a lot we've got to keep an eye on here with respect to migration trends and where companies want to do their business." The report found that four Northeast markets —Jersey City, Brooklyn, Northern New Jersey, and Manhattan— are all in the top 10 markets to watch. Alperstein credits this to the ongoing return-to-office mandates. "They have very low apartment vacancy. They have access to New York and the amenities that New York offers. We have a lot of younger employees that want to be back in the office and want to be proximate to their workplace and that's a big part of this trend," he says. In addition to the Northeast markets, the Sun Belt states — like Texas, Florida and Arizona — are rising in popularity as well, Alperstein added. "The Sun Belt continues to be desirable for employers and employees. The expectation is that's where we'll continue to see population and economic growth. We've got a little more of a balance this year." The Dallas-Fort Worth market is the top market to watch for the second year in a row. It ranked No. 1 in both commercial and homebuilding prospects lists this year, according to the report. Dallas outperforms other markets on the list because of its accessibility, low cost of living, and ease of doing business. The place is known for its business-friendly environment, and Dallas attracted 100 corporate headquarters between 2018 and 2024, according to the report. "What's really changed in the last couple of years is that the financial services shift in Dallas has further accelerated. Companies are moving and populations are moving, but it's not all about financial services," Alperstein says. "It has a pretty diverse economy, is still relatively affordable and there's easy access to it. Dallas has a great story that will likely continue from a migration perspective and ongoing development and expansion." Dallas-Fort Worth, Texas Jersey City, N.J. Miami, Fla. Brooklyn, N.Y. Houston, Texas Nashville, Tenn. Northern N.J. Tampa/St.Petersburgh, Fla. Manhattan, N.Y. Phoenix, Ariz. Jersey City is the No. 2 real estate markets to watch on the PwC and the Urban Land Institute report. According to the report, Jersey City is a fast-growing commercial hub conveniently located near New York City, which enhances its appeal to top talent and several industries, while still being more affordable than the Big Apple. The New Jersey city saw a 7.5% population increase between 2020 and 2024. The apartment rental rates have increased 2.4 percent over the past 12 months, double the national average growth rate. "This is a city that's seen population growth in the last couple of years. It's got a nice mix of green space, restaurants and amenities. The biggest driver for what we can see in terms of population increase is its accessibility to Manhattan. It's a little more affordable than living there, too," Alperstein says.
