Providence, Rhode Island. Ultima_Gaina/Getty Images Zillow identified the hottest rental markets going into the summer of 2026. Rental demand is higher in big cities where a lack of construction creates more competition. A small Northeastern city beat out the big cities for the title of hottest market in the country. Buying a home doesn't make sense for everyone, but in several highly sought-after markets, it might be harder to rent. Regions like the Sun Belt have experienced a construction bo