The 10 top housing markets of 2022: Think Boise, not New York City

The 10 top housing markets of 2022: Think Boise, not New York City

Actual property has been difficult for a lot of patrons this yr, with house costs up sharply and stock at document low ranges. Some patrons could get a break in 2022, but it surely’s not more likely to be in some of the nation’s smaller cities which have seen sturdy housing demand on account of distant work in the course of the pandemic. 

The cities which are more likely to see the strongest value will increase and residential gross sales are described as second-tier cities that supply higher affordability and extra space in contrast with the nation’s largest cities, in accordance with a brand new forecast from It primarily based its forecasts on current house gross sales in addition to financial developments, akin to unemployment and family development. 

Boise, Idaho, is once more more likely to be close to the forefront in 2022, predicted. That comes after native property costs surged greater than 30% within the third quarter, and Boise was named the least reasonably priced housing market within the U.S. — with the town’s median house value leaping to virtually $535,000, or 10 occasions the town’s median earnings. 

Boise is attracting individuals who wish to relocate from costly tech hubs like San Francisco, folks for whom these costs could appear to be a deal in contrast with pricing in larger cities. And that pattern is more likely to proceed in 2022, stated chief economist Danielle Hale. 

“2021 was an ultracompetitive year for the real estate market, especially for smaller secondary tech markets. They benefited from knowledge workers being freed up from going into the office every day,” Hale famous. Subsequent yr will likely be “in many ways a continuation of what we saw this year.”

She added, “People are embracing the flexibility of the workplace and moving into areas that are more affordable.”

Most of the top 10 markets for 2022 have a “small-town kind of quality of life, yet they still have thriving local economies,” Hale famous. 

Massive cities could lag smaller ones

Common house costs within the top 10 actual property markets are anticipated to leap 7.4% subsequent yr, or greater than twice the nationwide tempo of 2.9%, stated. Consumers could get a break subsequent yr with extra stock getting into the market, relieving some of the low-stock points that hampered house purchasers in 2021, Hale famous. 

Many massive cities like New York and Los Angeles are forecast to see value appreciations however could not match some of the smaller cities, in accordance with the forecast. Costs within the New York metropolitan area, for instance, are predicted to rise 2.3% in 2022, whereas house costs within the Los Angeles are more likely to rise 4.8%, stated.

“Real estate has really rebounded across the board, even though secondary markets have fared better,” Hale famous.

One factor to maintain a watch is the Omicron variant of the coronavirus, she added. The worry of an infection might make owners much less more likely to put their houses available on the market, which might then crimp stock ranges subsequent yr, she added. 

Beneath are the top 10 markets for 2022, primarily based on estimates from Forecasts embody the change in quantity of houses bought in addition to costs for 2022 versus 2021.

1. Salt Lake City, Utah

  • Predicted gross sales change: 15.2%
  • Predicted value change: 8.5%
  • 2021 median house value: $564,062

2. Boise City, Idaho

  • Gross sales change: 12.9%
  • Worth change: 7.9%
  • 2021 median house value: $503,959

3. Spokane-Spokane Valley, Washington

  • Gross sales change: 12.8%
  • Worth change: 7.7%
  • 2021 median house value: $419,803

4. Indianapolis-Carmel-Anderson, Indiana

  • Gross sales change: 14.8%
  • Worth change: 5.5%
  • 2021 median house value: $272,401

5. Columbus, Ohio

  • Gross sales change: 13.7%
  • Worth change: 6.3%
  • 2021 median house value: $298,523

6. Windfall-Warwick, Rhode Island-Massachusetts

  • Gross sales change: 8.1%
  • Worth change: 9.5%
  • 2021 median house value: $419,813

7. Greenville-Anderson-Mauldin, South Carolina

  • Gross sales change: 11.4%
  • Worth change: 5.7%
  • 2021 median house value: $305,078

8. Seattle-Tacoma-Bellevue, Washington

  • Gross sales change: 9.6%
  • Worth change: 7.5%
  • 2021 median house value: $666,754

9. Worcester, Mass.-Connecticut

  • Gross sales change: 8.4%
  • Worth change: 8.2%
  • 2021 median house value: $397,188

10. Tampa-St. Petersburg-Clearwater, Florida

  • Gross sales change: 9.6%
  • Worth change: 6.8%
  • 2021 median house value: $335,814
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