The Sun Belt Dominates The Hottest Housing Markets For 2022
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There were multiple real estate markets that set records in 2021, and many of those areas aren’t ready to cool off in 2022. According to a new Zillow study, states in the Sun Belt show the most promise for housing growth in 2022.
To determine the best real estate markets in 2022, Zillow analyzed specific metrics:
- Forecasted annual home value appreciation in Nov. 2022
- Forecasted acceleration in home value appreciation, Nov. 2021-Nov. 2022
- Standardized listing days per home, Jan. 2021-Nov. 2021
- 2-year change in total non-farm employment per 2-year residential building permit total
- Projected change in owner households, 2021-2022
The real estate website also points out that baby boomers and millennials will affect the housing market the most.
“The boomer tide in the for-sale housing market is expected to continue to rise for at least the next eight years; younger millennials will be hitting first-time home-buying age at about the same time, meaning the 2020s will be a period of sustained underlying demand in the housing market,” Zillow states.
Zillow notes that the Sun Belt states have “historically not been particularly sensitive to rising mortgage interest rates or a slowing stock market.”
The Sun Belt consists of southern states, including Alabama, Arizona, Arkansas, California, Florida, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, and Texas. The new analysis found that the Sun Belt states dominated the list of the hottest real estate markets. Florida leads the list with three of the top ten real estate markets – including the top two areas.
1.) Tampa, Florida
Tampa is expected to rise from the fourth-fastest home value growth in 2021 to the fastest in 2022, according to the research.
“Tampa is predicted to be the hottest market for 2022 due to a combination of reasons, keeping sellers in the driver’s seat into 2022,” Zillow economist Nicole Bachaud told Homes & Garden. “Tampa’s home values are projected to grow 24.6% this year, a strong forecasted growth that helped land it at the top of this list. Additionally, a thriving job market, relatively scarce and fast-moving inventory, year-round sunny weather, and demographics that indicate a good number of potential buyers all contributed to Tampa taking the number one spot.”
Emma Pardo – who is a realtor with the real estate company Compass – told WFLA, “Of course, we have winning sports teams, which put a spotlight on Tampa. For what you get for your dollar, Tampa really outweighs a lot of other areas of this country.”
2.) Jacksonville, Florida
Jacksonville’s home value growth went from seventh last year to third in 2022.
“The Jacksonville metro area is one of the most exciting markets to buy in right now because it is fair to both sellers and buyers,” explains Lazaro Marganon – Leader of The Marganon Group. “We have a somewhat competitive market that is not ballooning home prices nor is coming at below-asking prices.”
3.) Raleigh, North Carolina
Raleigh went from third-fastest home value growth in 2021 to second-fastest in 2022.
4.) San Antonio, Texas
“Homes that are priced well are drawing multiple bids due to tight inventory and steadily increasing value prices,” said Gordon von Broock, Douglas Elliman agent. “There is currently a lot of attention on Austin, but with San Antonio only an hour away, people are starting to discover it in a big way.”
5.) Charlotte, North Carolina
“We’re continuing to see lots of young professionals and families move to North Carolina,” notes Jon Enberg, Charlotte General Manager at Opendoor. “Charlotte is seeing more demand than most cities in the Southeast – median prices up 22% year-over-year – and at a higher price point, up to $450K in many suburbs.”
Rounding out the top 10 hottest real estate markets in the U.S. for 2022:
- Nashville, Tennessee
- Atlanta, Georgia
- Phoenix, Arizona
- Orlando, Florida
- Austin, Texas
Meanwhile, the coolest housing markets in 2022 are expected to be Chicago, Milwaukee, New York City, San Francisco, and San Jose.
In another recent study, Redfin found that eight of the top 10 hottest neighborhoods to live in were located in Florida – including South Sarasota, East Venice, Englewood, Venice, Nokomis, The Meadows, Weston, and Fort Myers.
[Photo by M-DESIGNZ from Pexels]