A whirlwind year for homebuyers and sellers, especially in these top housing markets
As we look ahead to 2022, the real estate market is poised for excitement and growth. In this article, we will explore the top ten housing markets that are expected to shine in the coming year. These markets have shown remarkable potential and have been propelled to the top of our real estate charts. By examining these markets, we can gain valuable insights into the broader trends that are shaping the housing landscape.
Top 10 Housing Markets Positioned for Growth in 2022
| Rank | Metro | 2022 Sales Growth % y/y | 2022 Price Growth % y/y | Combined Growth |
|---|---|---|---|---|
| 1 | Salt Lake City, Utah | 15.2% | 8.5% | 23.7% |
| 2 | Boise City, Idaho | 12.9% | 7.9% | 20.8% |
| 3 | Spokane-Spokane Valley, Wash. | 12.8% | 7.7% | 20.5% |
| 4 | Indianapolis-Carmel-Anderson, Ind. | 14.8% | 5.5% | 20.4% |
| 5 | Columbus, Ohio | 13.7% | 6.3% | 20.0% |
| 6 | Providence-Warwick, R.I.-Mass. | 8.1% | 9.5% | 17.7% |
| 7 | Greenville-Anderson-Mauldin, S.C. | 11.4% | 5.7% | 17.1% |
| 8 | Seattle-Tacoma-Bellevue, Wash. | 9.6% | 7.5% | 17.1% |
| 9 | Worcester, Mass.-Conn. | 8.4% | 8.2% | 16.6% |
| 10 | Tampa-St. Petersburg-Clearwater, Fla. | 9.6% | 6.8% | 16.4% |
| United States | 7.0% | 5.7% | 12.7% |
Salt Lake City, Utah
These rankings are based on the combined yearly percentage growth in both home sales and prices expected in 2022 among the top 100 largest markets in the country. It's important to note that in cases of a tie, Sales Growth y/y was used as a tiebreaker.
Geographic Hotspots: Mountain West, Midwest, New England, and the South
It comes as no surprise that the Mountain West, Midwest, and New England regions are at the forefront of the top housing markets for 2022. These areas boast healthy local economies with low unemployment rates and significant job growth. Tech jobs also play a role in attracting homebuyers to these regions, as they offer respite from the competitive and expensive real estate markets found in tech centers. Cities like Seattle, Salt Lake City, Columbus, and Boise, which have a higher concentration of STEM jobs, stand out among the top 10 markets.
Residents Are Looking for Remote Work from Here
With the rise of remote work, many workers are seeking the best of both worlds – the opportunity to work remotely while enjoying the benefits of living in top housing markets. In Boise, Spokane, and Salt Lake City, there is a higher-than-average number of workers applying to jobs that offer remote work options. This trend aligns with the competitive labor market and the preferences of workers seeking a better work-life balance.
Young Households Drive Demand for Some while Others Draw Retirees
Younger individuals aged 25-34 play a significant role in driving housing demand in the top markets. The formation of households and the desire for homeownership among this age group contribute to the demand for housing. Markets like Seattle, Salt Lake City, and Columbus have a higher population share of younger people, making them attractive destinations for young families. On the other hand, markets like Tampa, Greenville, Providence, and Spokane draw retirees who are seeking a change of scenery and a more relaxed lifestyle.
Growing Markets Attract Outsiders, Especially from Big Cities
The top housing markets have experienced significant household growth, outpacing the national average. The strong local economies and attractive amenities of these areas have attracted outsiders looking for a change. Interestingly, a significant portion of real estate traffic in these markets comes from viewers outside of the local market. Shoppers from big cities like New York and Seattle are among the top sources of traffic in each of these metros, highlighting the appeal of these markets to those seeking a different lifestyle.
The Top Markets Are Generally Small and Less Crowded
While some of the top 10 markets are among the largest metro areas in the country, most of them have a small-town feel and offer a less crowded lifestyle. With lower population densities and larger homes for sale, these markets provide a sense of space and tranquility. The affordability of these markets, while relative to the specific area, attracts buyers looking for a better quality of life without sacrificing space and comfort.
Affordability is Relative and Getting Harder to Come By
Affordability remains a key consideration for homebuyers, even in the top housing markets. While the average asking prices in these markets are higher than the national average, they still offer relative affordability compared to other major cities. Markets like Indianapolis, Columbus, Greenville, Tampa, and Worcester have typical asking prices that are below or slightly above the national average. These markets provide opportunities for buyers to find a home within their budget. However, with sales prices expected to rise in 2022, even these affordable markets may become less accessible to some buyers.
Key Stats for Top 10 Housing Markets in 2022
| Top 10 Markets (Avg) | Largest 100 Markets (Avg) | Sales % Change YoY 2022 (projected) | Price % Change YoY 2022 (projected) | Median List Price Year To Date Nov 2021 | Median List Price Year To Date Nov 2021 YoY | Households YoY 2022 (projected) |
|---|---|---|---|---|---|---|
| Salt Lake City, Utah | 23.7% | 15.2% | 8.5% | $564,062 | +15.2% | +8.5% |
| Boise City, Idaho | 20.8% | 12.9% | 7.9% | $503,959 | +12.9% | +7.9% |
| Spokane-Spokane Valley, Wash. | 20.5% | 12.8% | 7.7% | $419,803 | +12.8% | +7.7% |
| Indianapolis-Carmel-Anderson, Ind. | 20.4% | 14.8% | 5.5% | $272,401 | +14.8% | +5.5% |
| Columbus, Ohio | 20.0% | 13.7% | 6.3% | $298,523 | +13.7% | +6.3% |
| Providence-Warwick, R.I.-Mass. | 17.7% | 8.1% | 9.5% | $419,813 | +8.1% | +9.5% |
| Greenville-Anderson-Mauldin, S.C. | 17.1% | 11.4% | 5.7% | $305,078 | +11.4% | +5.7% |
| Seattle-Tacoma-Bellevue, Wash. | 17.1% | 9.6% | 7.5% | $666,754 | +9.6% | +7.5% |
| Worcester, Mass.-Conn. | 16.6% | 8.4% | 8.2% | $397,188 | +8.4% | +8.2% |
| Tampa-St. Petersburg-Clearwater, Fla. | 16.4% | 9.6% | 6.8% | $335,814 | +9.6% | +6.8% |
*Ranked by Combined Growth. In cases of a tie, Sales Growth y/y was used as a tiebreaker.
Salt Lake City, UT
Salt Lake City takes the top spot on this year's list of top housing markets. Known for its outdoor attractions and proximity to world-class skiing, hiking, fishing, and mountain biking, Salt Lake City offers a dream lifestyle for outdoor enthusiasts. It has also become a desirable destination for transplants from California and Colorado, attracted by its affordable homes, low cost of living, and excellent schools. The city benefits from its close proximity to Lehi, also known as Silicon Slopes, a hub for the tech industry.
Boise, ID
Boise, Idaho is ranked second on our list of top markets for 2022. With its abundance of outdoor activities, including hiking, skiing, and snowshoeing, Boise has become a popular relocation destination for those seeking an active lifestyle. The city boasts a thriving job market, with major employers such as Micron Technology, Albertsons, and Boise State University. Its vibrant downtown area is filled with restaurants, bars, and shops, attracting people of all ages and interests.
Spokane-Spokane Valley, Wash.
Spokane, located near the Idaho border, takes the third spot on our list. With the Spokane River running through the city, residents can enjoy a plethora of waterfront activities. Spokane offers the perfect balance between a vibrant downtown atmosphere and a low cost of living. The city provides easy access to amenities, restaurants, and nightlife, making it an attractive option for homebuyers looking for the best of both worlds.
Indianapolis, Ind.
Indianapolis ranks fourth on our list, offering a small-town feel with the benefits of a major city. The market boasts a lower cost of living than the national average, including low taxes. With its top-rated schools and a variety of recreational activities, Indianapolis is an attractive option for families and property investors. The city's rich sports culture, highlighted by the Indianapolis Colts and major sporting events, adds to its appeal.
Columbus, Ohio
Columbus, Ohio takes the fifth spot as the fastest-growing city in the state. Its booming job market and low cost of living have attracted transplants from more expensive areas. The city offers excellent schools, including the top-rated New Albany High School, and a vibrant downtown area with a range of recreational opportunities. Homebuyers are drawn to Columbus for its spacious homes and affordable prices.
Providence-Warwick, R.I.-Mass.
Providence, Rhode Island's capital city, ranks sixth on our list. Known for its hospitals and universities, including Ivy League institution Brown University, Providence offers a central location with easy access to Boston and New York. The city boasts great restaurants, nightlife, and art scene, including the famous WaterFire installation. With a lower cost of living compared to nearby cities, Providence is an attractive option for homebuyers seeking affordable housing and a vibrant cultural scene.
Greenville-Anderson-Mauldin, S.C.
Greenville, South Carolina, takes the seventh spot on our list, offering a low cost of living and incredible weather year-round. The area provides abundant opportunities for outdoor activities, with multiple local spots for walking, kayaking, and hiking. Greenville's downtown area, Falls Park, is a popular destination with its restaurants, breweries, and shopping. The city's proximity to popular vacation spots like the Smoky Mountains, Hilton Head, and Myrtle Beach adds to its appeal.
Seattle-Tacoma-Bellevue, Wash.
Seattle, Washington, secures the eighth position on our list, building on its ranking as a top market in the previous year. The city has seen an influx of transplants from California, attracted by high-paying job opportunities and the headquarters of major companies like Amazon and Starbucks. Seattle offers a perfect blend of urban amenities and access to nature, with multiple lakes, islands, and ski resorts in close proximity. While the city's suburbs attract buyers seeking more space, top-rated schools are found throughout the region.
Worcester, Mass.-Conn.
Worcester, Massachusetts, ranks ninth on our list and is the second-largest city in the state. Worcester is known for its easy access to interstate highways, affordable housing, highly ranked schools, and its vibrant cultural and arts scene. The city is currently undergoing significant redevelopment, centered around the opening of Polar Park, home of the Worcester Red Sox. Worcester is attracting young buyers, particularly graduates from nearby colleges like Clark and Holy Cross.
Tampa-St. Petersburg-Clearwater, Fla.
Tampa, Florida, rounds out our list of top housing markets for 2022. Located along Florida's Gulf Coast, Tampa offers beautiful beaches, great weather, and a year-round living experience. The city attracts vacationers and retirees with its vibrant downtown area, low cost of living, and no state income taxes. Tampa's real estate market is booming, as buyers from major cities like New York and Chicago seek a change of scenery and embrace remote work opportunities.
Note: The data provided is based on projected growth and market trends. It's important to consult with a local real estate professional for the most accurate and up-to-date information before making any real estate decisions.
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Footnotes
- The markets LinkedIn reviewed do not match our top 100 forecast markets.
