SEATTLE, Jan. 4, 2022 /PRNewswire/ -- The hottest
housing market of 2022 will be Tampa, according to a new Zillow® analysis.
Rounding out the top five are Jacksonville, Raleigh, San
Antonio and Charlotte in
what is anticipated to be another hot year for housing across the
Sun Belt.
Zillow economists expect the housing market to back off
just a bit from a record-breaking pace in 2021, but home shoppers
looking in the 10 hottest markets are likely to face strong
competition, rising prices and limited inventory that will be
snatched off the market quickly. Tampa tops Zillow's list of hottest housing
markets due to a combination of strong forecasted home value
growth, a thriving job market, relatively scarce and fast-moving
inventory, and demographics that indicate a good number of
potential buyers.
"Home buyers are attracted to markets in the Sun Belt that offer
relative affordability, fast-growing economies and weather that
allows them to enjoy the outdoors year-round," says Zillow
economist Alexandra Lee. "Across the
board, sellers will remain in the driver's seat, but especially so
in the hottest markets. Buyers should be ready for strong
competition for homes, which means bidding wars and homes flying
off the market only days after they are listed."
Zillow's 10 hottest housing markets of 2022:
- Tampa
- Jacksonville
- Raleigh
- San Antonio
- Charlotte
- Nashville
- Atlanta
- Phoenix
- Orlando
- Austin
With the huge millennial generation's pent-up desire to move now
being fulfilled as it ages into its peak home-buying years,
together with the wave of baby boomers entering
retirement amid the "Great Resignation," Zillow economists
expect incredibly strong price appreciation and sales volume
to continue into next year — forecasting 14.3% national home value
growth through November 2022. Each of
the top 10 hottest metros are anticipated to exceed that, with
Tampa home values predicted to
grow 24.6% during that time.
Work will play a key role in moving decisions next year — for
remote and on-site workers alike — and a strong labor market has
factored into Zillow's hottest markets list, as well. With more
flexible work opportunities and a recovering labor market, many
areas experiencing high demand for housing are also seeing
increased local job growth. Six of the 10 markets on Zillow's list
have added more jobs than new homes over the past two years,
intensifying the competition expected in these markets.
Last year's hottest market, Austin, fell to No. 10 this year, while
Denver, last year's fifth-hottest
market, fell to 15th. Outside of the Sun Belt, the hottest markets
are expected to be in the Midwest. Salt
Lake City (13th overall), Kansas
City (14th), Oklahoma City
(16th) — which is sometimes considered a Sun Belt city depending on
where the border is drawn — Columbus (17th) and Indianapolis (18th) just missed making the
list.
The coolest markets out of the 50 largest U.S. metro areas are
expected to be New York,
Milwaukee, San Francisco, Chicago and San
Jose. But in today's supercharged housing market, buyers
shouldn't necessarily expect screaming deals in even these cooler
markets. Home values are forecasted to grow by at least 10% over
the next 12 months in all metros except San Francisco (9.9%).
Research methodology
Zillow analyzed the 50
largest U.S. metro areas to forecast the hottest, or most
competitive, housing markets of 2022. The analysis incorporates
expected home value appreciation from November 2021 to November
2022, the anticipated change in home value appreciation from
2021, the flow of for-sale inventory, an estimate of the net new
number of home-owning households based on current demographic
trends and new jobs per new housing unit permitted.
About Zillow Group
Zillow Group, Inc.
(NASDAQ: Z and ZG) is reimagining real estate to make it easier to
unlock life's next chapter. As the most visited real estate website
in the United States, Zillow® and
its affiliates offer customers an on-demand experience for selling,
buying, renting or financing with transparency and ease.
Zillow Group's affiliates and subsidiaries include Zillow®,
Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow
Closing Services™, Zillow Homes, Inc., Trulia®, Out East®,
ShowingTime®, Bridge Interactive®, dotloop®, StreetEasy® and
HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS
#10287 (www.nmlsconsumeraccess.org).
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SOURCE Zillow