The Top 15 Hottest Real Estate Markets For 2022
The Top 15 Hottest Real Estate Markets For 2022
REALTOR.com® releases an annual housing market forecast that includes vital information on markets in metro areas across the country. On the back of high demand and supply shortages, this information is more critical than ever for future buyers.
According to REALTOR.com®’s 2022 predictions, this year will bring its own brand of hurdles for hopeful homeowners. Housing challenges waiting for you include increased interest rates, buyer competition, home affordability and home prices.
Much of this growth depends on the influences of the pandemic. As a result of quarantining restrictions, many workers had to adapt to working from home. Many employees still work this way or rely on hybrid schedules. Because of this, suburbs are experiencing a higher demand for housing than other areas.
As we’ve seen in the previous years, the market can be tight. You may need help navigating the ups and downs of the market first. Consider speaking with a Rocket Mortgage® Home Loan Expert for more information on real estate investing and purchasing before you dive in.
Note: Combined market growth is based on REALTOR.com® predictions of both sales growth and price growth.
The 15 Hottest Housing Markets In The US
From waterfront properties to nightlife hubs, these metro areas are some of the hottest markets in the U.S. this year:
- Tampa, Florida
- Combined Market Growth: 16.4%
- Median Home Value: $360,000
- Population Growth (from 2010 – 2020): 21.27%
The Tampa Bay area includes several gems along Florida’s gulf coast, namely St. Petersburg and Clearwater. Because of factors like the area’s sunshine, it’s one of the best places to retire. It also appeals to younger prospective owners looking for warm weather year-round.
REALTOR.com® expects to see a 9.6% growth in sales and a 6.8% growth in prices.
- Jacksonville, Florida
- Combined Market Growth: 12.7%
- Median Home Value: $280,990
- Population Growth (from 2010 – 2020): 14.23%
A Florida city to rival Tampa, Jacksonville offers wide beaches, a thriving nightlife, and the nation’s largest urban park system. But despite its luxury-like attractions, the city has a relatively affordable cost of living.
Jacksonville should see approximately the same sales price growth as Tampa at 6.5%, but only 6.2% sales growth.
- Raleigh, North Carolina
- Combined Market Growth: 13.9%
- Median Home Value: $385,500
- Population Growth (from 2010 – 2020): 20.91%
Raleigh is a growing hub for younger professionals. Their unemployment rate is lower than the national average, and there are plenty of job opportunities. Along with that, the city remains relatively affordable, once again making it a draw for recent graduates.
According to REALTOR.com®’s forecast, Raleigh should only experience a 4.3% price growth but a 9.6% sales growth.
- San Antonio, Texas
- Combined Market Growth: 8.6%
- Median Home Value: $267,900
- Population Growth (from 2010 – 2020): 20.46%
San Antonio offers affordable living, particularly compared to other large cities in Texas, like Dallas. On top of that, there are many family-friendly activities nearby. Thus, the historic city may be promising for young or growing families.
This year, San Antonio will likely only see 3.5% price growth and 5.1% sales growth.
- Charlotte, North Carolina
- Combined Market Growth: 15.5%
- Median Home Value: $370,000
- Population Growth (from 2010 – 2020): 26.51%
While there’s variety with the seasons, Charlotte’s weather is generally pleasant year-round. This, combined with features such as a strong education system and fantastic museums, make it optimal for raising a family.
REALTOR.com®’s 2022 sales growth dropped for Raleigh from last year, from 13.8% to 9.9%. But price growth will remain relatively the same at 5.6%.
- Nashville, Tennessee
- Combined Market Growth: 11.1%
- Median Home Value: $422,100
- Population Growth (from 2010 – 2020): 13.48%
Nashville promises new homeowners lower taxes and plenty of exciting nightlife. You have your choice of eateries and live music venues, which people of all ages can enjoy.
Nashville’s forecast puts price increases at 5.6% year-over-year, and sales should increase at a similar rate of 5.5%.
- Atlanta, Georgia
- Combined Market Growth: 13.5%
- Median Home Value: $402,750
- Population Growth (from 2010 – 2020): 26.83%
The cost of living in Atlanta is moderate when you put it against other cities. For example, it’s around 23.88% less expensive than New York. Although, that doesn’t include rent – rent averages 53.98% lower than the Big Apple. Its lower taxes also make it a comparatively low-priced place to live.
Based on projections, Atlanta’s sales should jump up 10% over the year, but prices will move at a modest 3.5% increase.
- Phoenix, Arizona
- Combined Market Growth: 14.3%
- Median Home Value: $440,000
- Population Growth (from 2010 – 2020): 21.74%
People dream of visiting Phoenix for its many attractions, including its relative proximity to the Grand Canyon and Las Vegas. But it may just appeal to you long-term. There is a plethora of job opportunities for those who settle down.
Realtor.com®’s data expects Phoenix’s sales to increase by 7.5% and prices to increase by 6.8%.
- Orlando, Florida
- Combined Market Growth: 14.2%
- Median Home Value: $325,000
- Population Growth (from 2010 – 2020): 22.56%
There’s a magic to Orlando that makes it one of the top spots to live in Florida. You get the best of both worlds, whether you want urban excitement or suburban comfort. Either way, there’s always something to do.
In Orlando, sale increases should be higher than price increases, at 8.8% and 5.4%, respectively.
- Austin, Texas
- Combined Market Growth: 7.7%
- Median Home Value: $577,000
- Population Growth (from 2010 – 2020): 30.09%
Austin is a fast-growing city – partially thanks to the millennial crowd. The city’s nightlife is a major draw along with its status as a budding tech hub which means an increasing number of job opportunities for its residents.
Both sales and prices will remain relatively low for Austin. Sales will only grow by 4.7% and prices by 3.0%.
- Seattle, Washington
- Combined Market Growth: 17.1%
- Median Home Value: $770,000
- Population Growth (from 2010 – 2020): 29.46%
Seattle may have a reputation for rain, but that doesn’t keep prospective homeowners away. There is a stellar job market, where Seattle residents earn incomes above the national average. There’s also a range of outdoor activities for those who love nature.
REALTOR.com®’s predictions put Seattle’s sales up by 9.6% year-over-year, and their price increases at 7.5%.
- Boston, Massachusetts
- Combined Market Growth: 11.4%
- Median Home Value: $705,000
- Population Growth (from 2010 – 2020): 12.85%
People who want a vibrant, historical city with access to world-class health care need look no further than Boston. A quickly growing white-collar sector also means job opportunities for new residents.
Boston should see around a 3.9% increase in sales, but a push in price by 7.5%
- Salt Lake City, Utah
- Combined Market Growth: 23.7%
- Median Home Value: $500,000
- Population Growth (from 2010 – 2020): 7.79%
Some people prefer the great outdoors; others prefer exploring their city’s art scene. Salt Lake City has a bit of both, from access to five in-state National Parks to galleries galore.
According to REALTOR.com®, Salt Lake City will experience the highest growth in sales on this list – 15.2%. Price growth will also be moderately high at 8.5%.
- Denver, Colorado
- Combined Market Growth: 11%
- Median Home Value: $550,000
- Population Growth (from 2010 – 2020): 26.64%
Denver is growing into a major city. Even with that, the cost of living is still competitive with other big cities, particularly when it comes to utilities. Colorado is also a flat-tax income state, meaning no matter your income level, you get taxed 4.50% (in 2022).
Denver will have some of the lowest sales and price growth on this list, at 6.0% and 5.0%, respectively.
- Boise, Idaho
- Combined Market Growth: 20.8%
- Median Home Value: $510,000
- Population Growth (from 2010 – 2020): 12.08%
Boise boasts a very low unemployment rate compared to the national average. The cost of living is also under the national standard, including things like utilities, transportation and groceries.
In 2022, Boise should see some decent sales growth at 12.9%. However, REALTOR.com® predicts price growth at 7.9% – lower than the previous year.
Home Buying In Hot Real Estate Markets
If you’re interested in buying or selling a home this upcoming year, you’ll face some stiff competition. That’s due to the ongoing seller’s market.
With a seller’s market, there is a shortage of available homes for sale. In addition, materials to build homes are in short supply these days. As a result, sellers have the advantage. They have their selection of offers from competitive buyers, including offers above the asking price.
Compare that to a buyer’s market. That’s a state of the real estate market where the supply outweighs demand, giving the buyer greater purchasing power.
Because of the current market conditions, it’s important to know where you stand. Before buying a house or selling one, discuss your options with your real estate agent. If you’re a buyer, they can help you find your strongest strategy to purchase a house. That may mean a contingency-free offer or a high-priced one.
If you’re a seller, you should talk about what you want out of your sale. For example, maybe you want a rent-back agreement that allows you to stay in the home after closing for a set period.
The Bottom Line
The real estate market has been a rollercoaster since 2020. From the suburbs to major metros, many areas will still see growth during the upcoming year. However, the drastic highs should settle down with time.
If you’re ready to tackle hot markets like the ones above, consider starting your home buying process with Rocket Mortgage.
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California Buyers Still Can’t Afford Homes
The issue for California residential real estate remains the same. Poor affordability means that despite latent demand, buyers can’t afford the prices of homes in the Golden State. For that reason, many have left to find much cheaper homes in other states. Unemployment will likely be on the rise along with lower business profitability (tech sector continues to lay off workers) which means fewer buyers are likely for 3 to 6 months.
The stronger consumer optimism is running against sticky inflation and a likelihood the FED can’t lower interest rates. But will that discourage buyers in California? Demand is always intense in CA. No other place offers what California has, and buyers today do seem to put lifestyle at the top of their list.
The luxury housing market, like most other real estate sectors, is adjusting to a slowdown. Affordability and home size are every bit as much on wealthy buyers’ minds as other consumers. “The reality is we are coming out of one of the best real estate markets in history,” Gary Gold, a luxury property specialist with Coldwell Banker Realty in Beverly Hills, Calif., notes in the latest Coldwell Banker Global Luxury Trends Report. “But that level of demand and price appreciation wasn’t sustainable.”
Nearly 90% of respondents to the Coldwell Banker survey say they believe the real estate market will be better than or the same as 2022 for property investment. The following emerging trends were noted in the report.