When home prices fall, top investors thrive. Here's how you can, too.

When home prices fall, top investors thrive. Here's how you can, too.

Anyone who's bought (or tried to buy) a house during the past five years will not say the U.S. is in the midst of a buyer's market. The statistics back that up, as the median sales price skyrocketed during the COVID-19 pandemic.

Although it may not feel like it for homebuyers, prices are dropping. Areas that saw population booms during the rise of telecommuting have significantly cooled. As a result, real estate investors must be more discerning. Below, PropertyReach looks at some areas that still hold some promise for those looking for appreciable homes.

State of the US Real Estate Market in April 2026

As of April 2026, it seems the pandemic-era migration trends to Sun Belt states have been largely corrected. Five of the six most populous metropolitan areas in Texas, for instance, saw median sales prices decrease throughout 2025. The situation in Florida is quite similar-eight of the Sunshine State's 10 biggest metros experienced the same trend.

Nearly a quarter of the nation's 100 most populous metros are expected to see median sales prices fall in 2026. In most states, though, experts predict steady appreciation. The Northeast and Rust Belt, in particular, are well-positioned thanks to limited inventory and market corrections. Even Texas is poised for a rebound year.

What does that mean for investors? Now is the time to act-while home prices are still low, and before those prices begin their projected journey upward. Savvy investors are zooming in on areas where home sales figures are expected to inflate back to pre-pandemic figures (or even higher) and taking advantage of those properties' currently low prices.

How Do Investors Know Where to Put Their Money?

Most investment strategies are educated guessing games, and real estate is no exception. Metros that have seen steady price increases over the past year and quarter-safe bets, in many investors' eyes-could peak sometime in 2026. Similarly, metros with falling median home prices could be bottoming out as we speak, providing intriguing opportunities.

If you're an investor looking to get in on real estate that's expected to appreciate in 2026, a few signals you could look for include:

• Light (or at least stabilized) housing inventory, as a dwindling supply is bound to drive up prices. New home construction rates are expected to vary wildly in 2026.
• Strong job markets-homebuyers need plenty of money to afford homes in the U.S. today. The share of Americans' income needed to purchase a typical home is nearly 43%, higher than most experts' recommendations.
• Desirable climates. Increasingly volatile weather patterns have affected homebuyer behavior and the desirability of certain areas.
• Metros, cities, and neighborhoods with ample amenities. Some neighborhoods in 2026's best metros for real estate investors lack the infrastructure to handle further growth. A property finder helps when you need to analyze metros with a microscope.

5 Areas Poised for Rising Real Estate Prices

Here are a few metros that have unique qualities that position them for a strong 2026. Some have only begun to see rising prices after months of decreased values. Others have shown few, if any, signs that their hot real estate markets are slowing down.

1. Upstate New York

After years with scant new construction, the inventory in places like Rochester, Syracuse, and Albany has led to higher home prices. In the Albany-Schenectady-Troy metro, for example, the median home price appreciated by 5.5% throughout 2025. The quarter-to-quarter appreciation rate was a healthy 3.5%.

The median listing price in Rochester is an affordable $256,000, well below the national median of $400,000.

2. Northeast Pennsylvania

The increase in median home value in places like Scranton, Wilkes-Barre, and Allentown is too high to ignore. According to FHFA data, no large metro experienced a steeper median home price increase (8.9%) throughout 2025 than Allentown-Bethlehem-Easton.

3. Toledo, Ohio

Not many large U.S. metros have listing prices lower than Toledo. Homebuyers in this corner of Northwest Ohio are looking at houses valued well below $200,000.

Because more transplants from the West Coast are taking a closer look at Toledo and other Rust Belt-area metros, Toledo is poised to remain a seller's market for the foreseeable future. Plenty of investors have already taken advantage of the area's low prices.

4. Columbia, South Carolina

Although South Carolina's population growth has somewhat slowed in the past two years, the state's strong job market and proximity to coastal getaways make the Palmetto State a safe bet for investors.

In the middle of it all-literally-is Columbia, the state's capital and largest city. Between 2025's third and fourth quarters, the median sales price in the Columbia metro area rose by 2.8%. The yearly increase stands at 5.7%. It appears the demand for South Carolina homes is not dissipating any time soon.

5. Winston-Salem, North Carolina

Homebuyers who can't afford the high prices of Raleigh and Durham in North Carolina's Research Triangle often look westward toward the Piedmont region. There sits the triad of Winston-Salem, Greensboro, and High Point, an area with a stable job market and fair climate. Many experts expect more of the same for Winston-Salem in 2026: steady increases in median home values and relatively tight housing inventory.

Key Takeaway: Act Now Before Prices Rise

Home prices may be dropping in many areas, but in others, they're expected to tick back upward. Now may be the best opportunity for investors looking to find appreciable properties for a low price to scope out the market, as long as they know where to look.

The U.S. housing market of 2021 and 2022 was bound to correct sooner or later-and it seems that, as of 2026, "later" has come much "sooner" than many investors may have realized. Elevated volatility in the nationwide housing market may be the new normal, and success increasingly hinges on following current trends.

That's why it pays (literally) to do your homework before investing in a particular property, city, or state. Keep your eyes on the states and metros you're interested in, and use a property lookup tool to compare current prices with historical trends to find investment properties for sale that are ripe for profit.

This story was produced by PropertyReach and reviewed and distributed by Stacker.

Copyright 2026 Stacker Media, LLC

This story was originally published June 25, 2026 at 5:30 AM.