INDIANAPOLIS Indianapolis is once again earning national recognition as a housing hot spot, landing in the top 10 of the National Association of Realtors latest rankings.The outlook for the 2026 housing market could also bring new opportunities for buyers, especially as affordability and steady growth continue to set central Indiana apart.I think Indianapolis has an affordability where buyer budgets match the median house price, said Nick McNeely, a Realtor with F.C. Tucker.McNeely and other industry professionals expect the local market to remain strong.I think this year will be a really solid year, he said.WATCH | 2026 Housing Market Indianapolis named a housing hot spot by National Association of RealtorsThe National Association of Realtors ranked Indianapolis among the nations top housing markets after evaluating factors such as millennial household presence, household income growth and job growth.Job growth here has been steady, not flashy, and thats a good thing, Nadia Evangelou, a senior Economist and director of real estate research at NAR said. It supports housing demand without creating the volatility we see in more boom-and-bust markets.Shelley Specchio, CEO of the MIBOR Realtor Association, said inventory remains tight at the lower end of the market, where demand is strongest.We have every kind of house, Specchio said. The most affordable homes are going fast, and its tight, but theres such a range of housing and lifestyle choices.Specchio said another factor expected to open the market this year is mortgage interest rates stabilizing around 6%.That really opens the market, she said. People who have been waiting will start to move. That opens inventory, people move up, others move in. We want that churn.Millennials account for about 37% of households in the Indianapolis area, and experts say a more balanced market could help ease the pressure many buyers have felt.It starts to become a more balanced market, McNeely said. Buyers wont feel as frenzied. They can look at a few homes and make decisions. The spring market will still be fast-paced, but more manageable.Another factor boosting Indianapolis appeal is new construction. Single-family permits are up 7.5% compared to last year, signaling continued growth and added inventory across the metro area. ...read more read less