Zillow [1] predicts that the housing market will cool in 2022, but a number of hotspots have roared to life over the past two years show no signs of slowing.
According to a new list published by Zillow, Tampa, Florida will be the hottest market nationwide in 2022 due to a combination of forecasted home value growth, its thriving job market, low inventory, and demographics that signal a wealth of potential buyers.
It’s not just Tampa that is expected to boom, relatively favorable conditions throughout the state seen by Zillow also place Jacksonville, Florida and Orlando, Florida on the top-10 list of hottest housing markets.
"Home buyers are attracted to markets in the Sun Belt that offer relative affordability, fast-growing economies and weather that allows them to enjoy the outdoors year-round," says Zillow economist Alexandra Lee [2]. "Across the board, sellers will remain in the driver's seat, but especially so in the hottest markets. Buyers should be ready for strong competition for homes, which means bidding wars and homes flying off the market only days after they are listed."
“With the huge millennial generation's pent-up desire to move now being fulfilled as it ages into its peak home-buying years, together with the wave of baby boomers entering retirement amid the ‘Great Resignation,’ Zillow economists expect incredibly strong price appreciation and sales volume to continue into next year—forecasting 14.3% national home value growth through November 2022. Each of the top 10 hottest metros are anticipated to exceed that, with Tampa home values predicted to grow 24.6% during that time.”
Zillow also predicts that remote working opportunities will continue to play a key role in where buyers settle down going forward. But in six of the 10 top markets on Zillow’s list have added more jobs than homes, fueling the intense competition seen in these cities.
Surprisingly, the hottest market in 2021—Austin, Texas— fell from first to tenth place since the last list was published in January 2021. Denver fell from fifth to 15th place.
Click here to read the original report, including breakdowns of data and methodolgy. [3]