Driven by strong local economies, tech sector job growth and relative affordability, Realtor.com forecasts its Top Housing Markets of 2022 will lead the nation in listing price appreciation and home sales growth next year. Concentrated in the Mountain West, Midwest and New England, this year’s top 10 in rank order are: Salt Lake City, Utah, Boise, Idaho, Spokane, Wash., Indianapolis, Ind., Columbus, Ohio, Providence, R.I., Greenville, S.C., Seattle, Wash., Worcester, Mass. and Tampa, Fla.
Metro Phoenix ranks No. 19 among Top Housing Markets of 2022 with a forecasted 2022 home sales change 14.3%, a forecasted 2022 home price increase of 7.5%, and a forecasted 2022 combined sales and price change +6.8%. Tucson ranks No. 20, with a forecasted 2022 home sales change 14.2%, a forecasted 2022 home price increase of 8%, and a forecasted 2022 combined sales and price change +6.2%.
READ ALSO: 5 most expensive cities in Arizona real estate market
Based on the 2022 Realtor.com® local housing forecast, the areas on this list are expected to see the strongest combined growth in home sales and listing prices among the 100 largest U.S. metros. In fact, home sales across the top 10 markets are forecasted to grow by 11.6% year-over-year in 2022, which is nearly two-times the national home sales growth projection (6.6%). Additionally, average home prices in the top 10 are expected to increase 7.4% – more than double the national pace (+2.9%).
“This year’s list spans a variety of geographic hotspots, reflecting how pandemic trends like the rise in remote work are enabling many homebuyers to explore new areas where their budgets stretch further. The top 10 markets share a number of commonalities that are driving demand from millennial remote workers to retirees alike, including those from major coastal metros,” said Realtor.com® Chief Economist Danielle Hale. “With thriving local economies, low unemployment rates, convenient access to the outdoors and relatively affordable housing, many of the top markets offer the best of both small town quality of life and big city job security. Home shoppers in these areas may still be able to find good value even as listing prices are expected to climb in 2022, but getting a leg up on the competition will be key. For buyers with more flexible timelines – such as those making a move from a big city – offering a couple extra months on the closing date could sweeten the deal for sellers who also need to buy their next home.”
Key trends expected to drive growth in housing hotspots
• Tech jobs without the crowds: Homebuyers can find more breathing room in this year’s top housing markets relative to the 100 largest U.S. metros, at an average 60 fewer people per square mile, without having to sacrifice big city job opportunities. A common trend among the top 10 markets is a strong job market, with a lower average unemployment rate (4.1%) than the top 100 overall (5.1%) and higher average job growth (3.4% vs. 2.5%). Additionally, half of the top 10 have a higher share of STEM jobs than the 100 metro average (6.5%), at over 7% each in emerging hubs like Salt Lake City, Boise and Columbus, as well as in more traditional tech city, Seattle.
• Magnets for big city remote workers: On top of having strong local job markets, the top 10 markets are attracting remote workers. In fact, LinkedIn data shows the share of job seekers applying for remote work roles in metros like Boise and Spokane is at least 6.8% higher than the national average. With the rise in workplace flexibility during the pandemic, these workers are likely looking for a chance to escape city life while continuing to make a big city salary. In six of the top 10 markets, over half of recent home shopping traffic on Realtor.com® originated from outside the market, including from major metros like New York, San Francisco and Boston.
• Hotspots for both millennials and retirees: With more than 45 million Americans at typical first-time buying ages, millennials will be key drivers of 2022 housing demand nationwide and the top markets are no exception. In fact, those aged 25-34 represent a slightly higher share of the population in the areas on this year’s list (15.6%) compared to the top 100 (14.9%). Top markets Seattle, Columbus and Salt Lake City have an 18% share of younger millennials each. At the same time, many of these areas are popular retirement destinations, which means older generations will also play a key role in these markets. In four of the top 10, seniors aged 65-plus account for nearly one-third of households, led by Tampa at 32%.
• Relatively affordable home prices that are projected to rise: When compared to the 100 largest U.S. metros, median listing prices in the top 10 markets are an average of 8.6% higher and 2021 sales prices are projected to rise at a double-digit pace over 2020 (+14.1%). Despite this, half still have more affordable prices than the typical U.S. home, and the other half have lower-prices than key big-city feeder markets of home shoppers in the top 10. Additionally, because homes in these markets are relatively larger than the 100-metro average, by as much as 297 square feet in an area like Spokane, some buyers could potentially still find more house for their money. Even so, with top 10 home prices expected to rise 7.4% in 2022, affordability will be increasingly important to buyers in these areas.
Realtor.com 2022 Top Housing Markets
1. Salt Lake City, Utah
2021 median home price1: $564,062
Forecasted 2022 home sales change: +15.2%
Forecasted 2022 home price change: +8.5%
Forecasted 2022 combined sales and price change: +23.7%
Salt Lake City took the No. 1 spot on this year’s top market list. Located on the Northern side of the state, Salt Lake is an outdoor enthusiast’s dream with its close proximity to some of the best skiing, hiking, fishing, mountain biking in the country. Since the beginning of the pandemic, remote work has prompted an influx of transplants from California and Colorado looking for affordable homes, low cost of living and good schools. Lehi, Utah, also known as Silicon Slopes for its booming tech industry, is just 25 miles away from Salt Lake and home to SanDisk, Adobe and eBay facilities.
1 For the 12-month period ending November 30, 2021
2. Boise, Idaho
2021 median home price: $503,959
Forecasted 2022 home price change: +17.9%
Forecasted 2022 home sales change: +7.9%
Forecasted 2022 combined sales and price change: +20.8%
Boise, Idaho is No. 2 on Realtor.com®‘s top markets of 2022 list. Also, driven by a combination of remote work and a desire for outdoor activities such as hiking, skiing, snowshoeing, Boise has become a relocation destination for California transplants. It has a booming job market with employers like Micron Technology, Albertsons, and Boise State University. Great restaurants, bars, and shops line its vibrant downtown area which draws a crowd of all ages and walks of life. The Boise River Greenbelt runs through the east side of the city and includes a series of tree-dotted trails and parks hugging the water’s edge.
3. Spokane, Wash.
2021 median home price: $419,803
Forecasted 2022 home sales change: +12.8%
Forecasted 2022 home price change: +7.7%
Forecasted 2022 combined sales and price change: +20.5%
Located near the Idaho border, Spokane takes the No. 3 spot on this year’s list. With the Spokane River running through the city, residents can take part in an abundance of waterfront activities, while less rain and more sun than nearby Seattle means the best of warmer months and winter fun. With easy access to amenities, restaurants and nightlife in downtown areas like Riverside, Spokane offers homebuyers both the luxuries of a bigger city and a relatively low cost of living, including more affordable housing, than nearby Seattle, Portland and Tacoma. It has a concentration of well-ranked public schools, including Libby Center and Wilson Elementary, making it an attractive option for young families – perhaps those settling down after attending one of the many surrounding universities like Gonzaga, or Whitworth.
4. Indianapolis, Ind.
2021 median home price: $272,401
Forecasted 2022 home sales change: +14.8%
Forecasted 2022 home price change: +5.5%
Forecasted 2022 combined sales and price change: +20.4%
Like many of the cities on Realtor.com®‘s 2022 ranking, No. 4 market Indianapolis has a small town feel despite being the 15th largest U.S. city. The market has an 8% lower cost of living than the national average, including low taxes, as well as the ability to get pretty much anywhere in the entire city within about an hour. It is also home to the top-rated Indianapolis Colts and annual big-draw sporting events like the Indianapolis 500 and the NCAA tournaments, and multiple universities like Indiana-Purdue and Butler. With relatively spacious homes and affordable prices, Indianapolis is drawing in buyers who are finding a good sense of community in areas like Carmel, Zionsville and Noblesville, as well as property investors.
5. Columbus, Ohio
2021 median home price: $298,523
Forecasted 2022 home sales change: +13.7%
Forecasted 2022 home price change: +6.3%
Forecasted 2022 combined sales and price change: +20.0%
Coming in at No. 5, Columbus is Ohio’s capital and its fastest-growing city. The market is attracting a number of transplants from more expensive areas in the West, a trend that has accelerated with the rise in remote work. Also home to Realtor.com®‘s No. 6 Hottest ZIP Code in 2021 (ZIP 43228 Lincoln Village), people are drawn to Columbus’s booming job market, low cost of living and top-rated schools like New Albany High. Large employers in the area include L Brands, the parent company of Victoria’s Secret and Bath & Body Works, as well as Nationwide Insurance. Locals enjoy cheering on the Ohio State Buckeyes and visiting parks like Hoover Reservoir and Alum Creek for water sports.
6. Providence, R.I.
2021 median home price: $419,813
Forecasted 2022 home sales change: +8.1%
Forecasted 2022 home price change: +9.5%
Forecasted 2022 combined sales and price change: +17.7%
Providence has landed in the No. 6 spot on this year’s list. Rhode Island’s capital city is known for its hospitals and universities, being home to eight of each, including Ivy League Brown University. Providence also has great public schools including Classical High School. Residents enjoy the city’s central location with easy access to Boston and New York without the high price tags. Providence is also known for great restaurants, nightlife and art, including its famous WaterFire installation.
7. Greenville, S.C.
2021 median home price: $305,078
Forecasted 2022 home sales change: +11.4%
Forecasted 2022 home price change: +5.7%
Forecasted 2022 combined sales and price change: +17.1%
Greenville, at No. 7, offers low income and property taxes, small-town flavor, incredible weather and access to the great outdoors, with multiple local spots for walking, kayaking and hiking. In the center of downtown Greenville, Falls Park is host to restaurants, breweries and shopping, and offers spectacular views of Reedy River Falls from the Liberty Bridge. Greenville offers easy access to popular vacation destinations like the Smoky Mountains, Hilton Head and Myrtle Beach. While the area is experiencing lots of new construction growth, home prices are still relatively affordable. Plus, Greenville has its own booming economy, including big employers like BMW and Michelin, and a variety of public, charter, private and religious schools.
8. Seattle, Wash.
2021 median home price: $666,754
Forecasted 2022 home sales change: +9.6%
Forecasted 2022 home price change: +7.5%
Forecasted 2022 combined sales and price change: +17.1%
Landing on the list of homebuyer hotspots for the second year in a row is Seattle, which has seen an influx of Californians. As the headquarters of big companies like Amazon, Starbucks and Expedia, many new residents have relocated to Seattle for high-paying job opportunities during the pandemic. Perhaps making up for a higher-than-average cost of living, the “Emerald City” offers great weather across seasons and easy access to nature, with multiple lakes, islands, the Puget Sound, and even ski resorts and nearby wine country. While the Seattle suburbs are drawing in buyers who want more space, schools across the region are top notch. Plus, the city boasts the top-ranked University of Washington.
9. Worcester, Mass.
2021 median home price: $397,188
Forecasted 2022 home sales change: +8.4%
Forecasted 2022 home price change: +8.2%
Forecasted 2022 combined sales and price change: +16.6%
At No. 9 on this year’s list is Worcester, the second largest city in Mass and home to Realtor.com®‘s No. 7 Hottest ZIP Code in 2021 (ZIP 01757). At the heart of the state, Worcester offers easy access to interstate highways via the Mass Pike as well as a commuter train to Boston, as well as relatively affordable housing, top-rated schools and easy access to the outdoors. The city is also going through a massive redevelopment surrounding the opening of the Worcester Red Sox’s Polar Park. Combined with a vibrant cultural and arts scene and a strong jobs market fueled by local employers like UMass Medical School, Worcester is attracting young buyers, including graduates from surrounding colleges like Clark and Holy Cross.
10. Tampa, Fla.
2021 median home price: $335,814
Forecasted 2022 home sales change: +9.6%
Forecasted 2022 home price change: +6.8%
Forecasted 2022 combined sales and price change: +16.4%
Rounding out Realtor.com’s 2022 top markets is Tampa at No. 10. Located along Florida’s Gulf Coast, Tampa’s beautiful beaches, great weather and year-round living make it a popular destination for vacationers and retirees. But Tampa also has plenty to offer young professionals and families, from good schools and low-cost of living, including no state income taxes, to relatively affordable housing and plentiful new construction within reasonable commuting distance of the downtown area. With the rise of remote work during the pandemic, Tampa real estate activity is booming as buyers migrate from big cities like New York and Chicago.
