Spring is almost here, and the market is heating up! All indications point to another fruitful year in markets across the country. But these locations are poised to see the most significant sales yet. We’re breaking down the five hottest real estate markets for 2022, according to a Realtor.com analysis.
What the 5 Hottest Real Estate Markets Have in Common
The five hottest real estate markets have several key factors in common. Chief among them is a robust local economy, with low unemployment, stable wages, and more affordability. The Realtor.com data shows that these markets are hubs for buyers coming from other, more populated areas, hoping to settle in less crowded suburban towns.
The work-from-home trend is also fueling these markets, according to the analysis. As businesses continue to embrace teleworking, homebuyers flock to locations that provide a better work-life balance. The hottest real estate markets have easy access to outdoor activities, plenty of family-friendly amenities, and an appealing small-town feel.
Salt Lake City, UT
Salt Lake City ranks number one for the hottest markets in 2022. The Utah capital is a dream for many young homebuyers, with its close proximity to outdoor activities like skiing, mountain biking, hiking, and rafting. And with many more employees working from home than ever before, there is even more time to enjoy the great outdoors.
Real estate experts estimate Salt Lake home prices will increase by 8.5% over the coming year, with an expected 15.2% growth rate. And this is after housing prices increased by 28.3% from Q3 2020 to Q3 2021.
Unfortunately, Utah is also on our list for its record low inventory. As more and more people move into the state, the housing inventory simply cannot keep up. Builders struggle to meet demand, sending home prices soaring.
Even with increases in home prices, Salt Lake remains the number one hottest real estate market for 2022.
Buyers are flocking to Boise for many of the same reasons they are entering Salt Lake City: lots of outdoor amenities, a small-town feel, and more affordable living than in higher-priced markets. Boise is seeing many transplants from other areas, like the west coast and Colorado, all seeking a more affordable life.
While the Boise market remains relatively affordable compared to places like California and Washington, prices are on the rise thanks to increased demand and low inventory. Once ranked one of the most affordable cities in the country, Boise is fast becoming a rising star.
The average home now costs over $500,000 in and around Boise. Some areas have seen home prices increase by 40% since 2020. Realtor.com projects that Boise will see an estimated 20.8% total growth this year.
The eastern Washington city of Spokane is quickly becoming one of the hottest real estate markets in the country. Many work-from-home residents are leaving more expensive areas and moving to Spokane and the surrounding areas. Spokane is more affordable than, say, Seattle, with plenty of access to everything Washington State has to offer.
Even with an influx of residents, Spokane remains relatively affordable. The average home price is just shy of $420,000. The Realtor.com survey projects a 7.7% growth in home prices in 2022.
Indianapolis is a big city with a small-town vibe. And with a cost of living 8% below the national average, Realtor.com ranks it the fourth hottest real estate market in the nation for 2022.
First-time homebuyers and young families love Indianapolis because of its affordable housing prices. The average home costs just $280,376. With that in mind, the 5.5% price increase in 2022 will still allow homebuyers to purchase property in the city. And with so many millennials entering the market, affordable housing is a big draw.
Columbus, Ohio, the state’s capital, rounds out 2022’s hottest real estate markets. The central Ohio city attracts new residents seeking more affordable living, stable job markets, and award-winning schools.
Columbus home prices remain low, sitting below $300,000 going into 2022. Therefore, even with a projected growth of 6.3% over the coming year, homeownership and cost of living will continue to be more affordable here than in many other areas of the country.
Millennials and work-from-home employees make up the bulk of Columbus’s new residents. First-time homebuyers can afford to purchase a house while still maintaining financial security. Columbus saw incredible job growth in 2021, allowing millennials – especially those with young families – to lay down roots i the midwestern city.
Other Hot Real Estate Markets for 2022
Realtor.com’s analysis also predicted top growth for the following markets:
- Providence-Warwick, RI
- Greenville-Greenville-Anderson-Mauldin, SC
- Seattle-Tacoma-Bellevue, WA
- Worcester, CT
- Tampa-St. Petersburg-Clearwater, FL