the 12 hottest housing markets in 2022
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By Paul Centopani | Published on November 24, 2021
Though many economists predict that home price growth will slow in 2022, a lack of available inventory will keep things competitive for buyers for the foreseeable future.
With permanent work-from-home arrangements gaining popularity dynamics shifting, longstanding assumptions about the most popular metropolitan areas for homebuyers have been upended, with less visible markets gaining interest among those searching for a new home, according to the Emerging Trends in Real Estate 2022 report from PricewaterhouseCoopers and the Urban Land Institute.
“There is clearly an optimism within the real estate industry for its prospects in 2022 and there is undeniably a weight of capital available for investment,” Anita Kramer, senior vice president of ULI’s Center for Real Estate Economics and Capital Markets, said in the report.
The report included analysis from 1,700 real estate experts, investors, fund managers, developers, property companies, lenders, brokers, advisers and consultants. The list of what are expected to be the top markets in 2022 was based on strong growth, homebuilding outlook, affordability and job prospects. From Appalachia to the Rockies, local lenders detail what's causing substantial growth in their metro areas.
12. Denver, Colorado
5-year annual projected population growth in 2022: 1.1%
5-year annual projected employment growth in 2022: 1.3%
5-year annual projected household growth in 2022: 1.6%
Local professional: Lana Jern, owner and loan originator at Uptown Mortgage
Why will Denver be a hot market in 2022?
"Denver’s market is still robust with a lot of competition at the lower price points and, amazingly, also at price points up to $1 million. We are seeing a lot of competitive bidding over the asking price in all price ranges, and buyers are waiving inspection and appraisal requirements in order to be competitive with the cash buyers who frequently have the upper hand.
"Denver does continue to attract great companies creating additional headquarters that will bring many more opportunities for it to grow. New home builders have a lot of competition for their homes, and buyers scramble for available inventory. We are seeing many people who want to invest in mountain properties as a second home so they can have another place to work and/or play."
11. Salt Lake City, Utah
5-year annual projected population growth in 2022: 1.3%
5-year annual projected employment growth in 2022: 1.5%
5-year annual projected household growth in 2022: 1.7%
Local professional: Dave Robison, broker and owner of goBE Realty, and former president of Utah Association of Realtors and Salt Lake Board of Realtors
Why do you think Salt Lake City will continue to be a hot market in 2022?
"When you head for a night out to a restaurant district with lots of restaurants on the street, there is always the one that has a line out the door and every seat is taken in the house. That is the Salt Lake City real estate market.
"Between SLC's own organic population growth due to higher birth rates the last couple of decades and an economy that has been rated no. 1 in the nation for many years for business, it has become a magnet for growth and for people wanting to be a part of it. Thanks to COVID, people are coming here not just for a job, but for a lifestyle change. While working remotely, people can enjoy a great culture and four seasons."
10. Boston, Massachusetts
5-year annual projected population growth in 2022: 1.3%
5-year annual projected employment growth in 2022: 1.5%
5-year annual projected household growth in 2022: 1.7%
Local professional: Sammy Iliopoulos, senior loan officer at Guaranteed Rate
What will drive Boston to be a hot market in 2022?
"I probably get at least one person a day from either New York state or California. A lot of it is also people originally from here that are coming back with their families. The life sciences are a big proponent to people moving here and the school systems are excellent. There's a couple of big biotech companies that help create this market for people needing to buy and live here, which is great.
"I think 2022 will still be a very robust market. There's just a lot of cash out there for customers that have been holding on to it, waiting for the market to bust. It's still going to be competitive. The good news is that the national conforming limit is being raised. And that’s such a sweet spot for people that live in the greater Boston area. It's going to allow them to borrow more money, but it's still relatively cheaper for people to be able to move here compared to other big cities. And that’s why it’s a hot market."
9. Seattle, Washington
5-year annual projected population growth in 2022: 0.9%
5-year annual projected employment growth in 2022: 1.4%
5-year annual projected household growth in 2022: 1.4%
Local professional: Tom Schwab, loan originator at Westwood Mortgage
Why do you think Seattle will remain a hot market in 2022?
"Income growth in the technology sector is spectacular. There's just lots of money up here. And with the low interest rates and lots of leverage available, that's driving up housing prices. Between Microsoft, Amazon, Google, Facebook, and Apple has a pretty big presence. Seattle’s benefiting from a good nucleus of technology workers, the added benefit of no state income tax and our state government is generally well run.
"We're finding a lot of California-based technology companies are moving here since housing’s still cheaper than down in the Bay Area. It's the old adage, you don't have to outrun the bear, you just have to outrun someone else. California has better weather but there’s a lot of headwinds down there."
8. Atlanta, Georgia
5-year annual projected population growth in 2022: 1.1%
5-year annual projected employment growth in 2022: 1.5%
5-year annual projected household growth in 2022: 1.4%
Local professional: Sherlund Lucke, senior loan officer at BrightPath Mortgage
What drives Atlanta to be a hot market in 2022?
"Atlanta has high demand and low supply, so prices and values are extremely high. If someone lists a house, it’s under contract in a week max, especially if it’s below $350,000. It’s a good problem to have.
"I’ve seen a big influx of out-of-towners coming here, too. What we used to call snowbirds are now people moving permanently. Our taxes are low, the weather’s generally nice and the cost of living is good. New York can’t say all that. Los Angeles, Chicago and Dallas can’t either. I love southern California. I lived in L.A. for seven years, but it costs an arm and a leg."
7. Dallas/Fort Worth, Texas
5-year annual projected population growth in 2022: 1.4%
5-year annual projected employment growth in 2022: 1.6%
5-year annual projected household growth in 2022: 1.8%
Local professional: Mary Dinkins, regional president of Cornerstone Home Lending
Why do you think Dallas/Fort Worth will be a particularly attractive market next year?
"There’ve been multiple contracts on all properties for sale in the Metroplex market all the way north to Collin County. I fear it will come to a point where the appraisals meeting value is going to be a challenge but right now, people are willing to pay over the comps.
"We have a lot of jobs and diversity and new companies are coming in and moving people here. In March of last year, we didn't know where life was going to take us. With interest rates being as low as they are, the refinance market is definitely still thriving. I feel like everybody's already refinanced, but every day I find that's not the case."
6. Charlotte, North Carolina
5-year annual projected population growth in 2022: 1.3%
5-year annual projected employment growth in 2022: 1.6%
5-year annual projected household growth in 2022: 1.7%
Local professional: Amelia Mitchell, loan officer at Beeline
What makes Charlotte a desirable market in 2022?
"Charlotte has been growing exponentially over the past few years. Being a major player in the finance sector along with close proximity to Raleigh/Durham also makes it attractive.
"Moving to Charlotte gives people the big city feel for the small or moderate city dollar. The weather is generally always great and it’s an ideal city to raise a family in my opinion. With work-from-home seeming to be at least a part of our professional lives moving forward, what you can find for the money in a Charlotte home is much more feasible."
5. Tampa/St. Petersburg, Florida
5-year annual projected population growth in 2022: 1.3%
5-year annual projected employment growth in 2022: 1.6%
5-year annual projected household growth in 2022: 1.7%
Local professional: Andy Wood, owner and mortgage broker at Titan Home Lending
Why do you think Tampa and St. Petersburg will draw a lot of interest in the next year?
"Having been in Tampa for now my 4th decade, I have seen the area change in so many ways. The last decade has seen tremendous investment into the downtown areas of Tampa and St. Petersburg. The shift from urban sprawl to urban life has created a 'real downtown' in each location. Both cities have done a great job in planning and creating those areas.
"We rank as some of the worst public transportation cities but soon will be one of the best for commuting into town for work, recreation and entertainment. The improvements to the highway infrastructure are massive and ongoing. Land and space are readily available in our area and within a short commute. We see a massive influx of buyers from the northern states with large government pensions — those go a long way living in Florida."
4. Austin, Texas
5-year annual projected population growth in 2022: 2.0%
5-year annual projected employment growth in 2022: 2.4%
5-year annual projected household growth in 2022: 2.6%
Local professional: Joel Richardson, branch manager and senior loan officer at PrimeLending
Why do you think 2022 will be a big year for Austin?
"Basically, it's all job growth. The more jobs coming in, the hotter the market. Austin’s getting a lot of high-tech jobs moving in. Everyone knows Tesla announced their headquarters move here but they're building a factory, so that brings a lot of working-class jobs here too. And then the Googles and the Facebooks, all those types of high tech kind of companies are moving here and moving people here so we're seeing a lot of inflow from out of state.
"We have land in Austin, so builders are going out further away from the urban core while the city council pushes for more condensed housing. We're also seeing a lot of investors here, both individual and institutional, buying houses and putting strain on the market by pinching the affordability."
3. Phoenix, Arizona
5-year annual projected population growth in 2022: 1.3%
5-year annual projected employment growth in 2022: 1.7%
5-year annual projected household growth in 2022: 1.8%
Local professional: Doug Jameson, Desert Mountain regional vice president for Guild Mortgage
What drives Phoenix to be a hot market in 2022?
"The pandemic's certainly changed some geography for those that live here. Phoenix is the primary city in Maricopa County, but there are another 20-plus cities that make up the greater metro area. In the past, the cities were competing with each other for possible new residents and investor demand. But I think now they're competing with other big cities around the United States.
"From a job standpoint, Phoenix as a mini Silicon Valley is continuing. It's really allowed Phoenix to excel and even grow at a faster pace than we were already growing at. The big news recently is Taiwan Semiconductor announced plans for a big plant in the metro."
2. Raleigh/Durham, North Carolina
5-year annual projected population growth in 2022: 1.3%
5-year annual projected employment growth in 2022: 1.2%
5-year annual projected household growth in 2022: 1.7%
Local professional: Amy Bonis, branch manager and loan officer at GoPrime Mortgage
What drives Raleigh/Durham to be a hot market in 2022?
"I'm sure there are other parts of the country that are experiencing the same thing. But it's crazy. People are bidding a lot of money over the listing prices. It’s expanding into the more rural areas now, which happens with population growth, and supply and demand.
"The area has a lot to offer and is still affordable compared to other places in the country. There are a ton of tech and life science jobs, great universities and you have temperate weather but still get the four seasons."
1. Nashville, Tennessee
5-year annual projected population growth in 2022: 1.3%
5-year annual projected employment growth in 2022: 1.2%
5-year annual projected household growth in 2022: 1.7%
Local professional: Derek Vandlen, regional senior vice president at Fairway Independent Mortgage
What drives Nashville to be a hot market in 2022?
"Nashville is so hot because of all of the great places to eat, night life, music and all the history it has. Nashville benefits from a low crime rate and the lower taxes that Tennessee offers. These are all the things people moving here always say."