10 Hottest Housing Markets in America
10 Hottest Housing Markets in America
2022's hottest real estate markets
After an unstoppable year in the real estate market, 2022 is shaping up to be another red-hot year for housing. But what was hot in 2021 may not be in 2022. As migration patterns continue to head southward, people are moving away from high-density coastal cities toward sunnier and more affordable housing in the South. Here's a closer look at what's predicted to be the 10 hottest markets in America this year.
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1. Tampa, Florida
Tampa, Florida, has been on the "hottest" housing market list for several years, but this is the first year it holds the title of being the hottest market in America, at least according to a recent report by Zillow.
This major metropolitan port town is growing at an insane speed. Encompassing both Clearwater and St. Petersburg, the Greater Tampa metro has seen the median home price increase 25%, while rental rates fall just 1% short, at a 24% year-over-year (YOY) increase. Demand for this "hot" city is largely driven by the cost of living, no income tax, ample job opportunities, and its idyllic location along Tampa Bay.
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2. Jacksonville, Florida
This up-and-coming port city doesn't usually make the hottest market list, with Realtor.com putting its hotness ranking near 167, but according to Zillow, Jacksonville is taking off.
Just a short drive to the Georgia border, this budding coastal metro has deep ties as a logistics hub, ample job opportunities, affordable housing, and great beaches. YOY home prices have appreciated just over 27%, while the rental rate is in double-digit growth territory, hovering above 10%.
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3. Raleigh, North Carolina
Raleigh Durham, North Carolina, which encompasses the Greater Chapel Hill and the cities of Durham and Raleigh, has been a major hub for the Southeast for decades. Home to Duke University and the hub for several medical industries, Raleigh has seen its home prices climb close to 31% YOY, while rents have jumped 11%.
ALSO READ: The U.S. Has a Housing Shortage -- Here's What Investors Need to Know
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4. San Antonio, Texas
San Antonio, Texas, is a well-known tourist destination, thanks to its iconic River Walk, historic Alamo, and awesome food scene. But tourists aren't the only ones flocking here. Home prices are up 17% YOY, while rents have increased 15%.
Like Florida, Texas benefits from zero state income tax, making it a more affordable and attractive place to live for Northerners seeking favorable weather and more economical living conditions.
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5. Charlotte, North Carolina
Charlotte, North Carolina, has been on the hottest markets list for quite some time now, so it's no surprise to see it once again in 2022. This city, which serves as a major logistics and transportation hub, has grown tremendously over the past decade, now holding the title of second-largest financial hub outside of New York City.
Booming job demand and fairly affordable cost of living have drawn people to Charlotte in droves. Over the past year, the city's home prices have jumped close to 27%, while rents have risen 18.5%.
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6. Nashville, Tennessee
Nashville, Tennessee, definitely isn't an up-and-coming city. It's long been revered as one of the top metropolitan areas in the country, with deep ties in music and entertainment, giving it the nickname "Music City."
Much of the city's appeal is its thriving food and culture, offering city dwellers from areas like New York City, Seattle, or Portland a fun alternative for living for slightly less. Home prices have increased 27% YOY, while rents are up 18%.
ALSO READ: 7 Money-Saving Tips for Your Road Trip to Nashville
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7. Atlanta, Georgia
Like Nashville, Atlanta, Georgia is a thriving city with decades of growth behind it. The city has a stable job market, an affordable entry point for housing, and has become a hub for tech start-ups and millionaires in the entertainment and media industries.
Atlanta's suburbs are booming, with several of the small cities surrounding the Greater Atlanta Metro -- like Jefferson, Georgia -- seeing higher rental and home price growth rates than the city proper. In the city of Atlanta, home prices have increased 27% over the past year, while rents have grown 23%.
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8. Phoenix, Arizona
Phoenix, Arizona, is the fifth-most-populated city in the U.S. and has been on the hottest housing markets list for several years running. This desert city -- which has ties to major medical companies, several Fortune 500 companies, tech start-ups, and retail giants -- has ample job opportunities backed by a fairly affordable cost of living.
Phoenix was in the top 20 list in 2021, according to Realtor.com, but Zillow puts it back at the top of the ranks for the coming year, after home prices soared 31% and rental rates increased 13.6%.
ALSO READ: Single-Family Rentals Are Hot -- Here's Why and Where
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9. Orlando, Florida
With ties to Disney and Universal Orlando Resort theme parks, Orlando, Florida, draws millions of visitors each year. But people are quickly realizing there is more to the city than its theme parks. Orlando is a great place to work and live, too.
According to Realtor.com, the Orlando-Kissimmee-Sanford metro area saw the largest increase in its hotness ranking compared to other big cities in America. Up over 30% YOY, home prices are booming, and rental rates are speeding ahead, up 38%.
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10. Austin, Texas
Austin, Texas, has been the hottest market for the past few years. It's a rapidly growing city with a number of tech startups, Fortune 500 companies, and major corporations calling it home. And with a thriving food and culture scene and mild winters, it's understandable to see why the city is booming.
Being No. 1 for a few years has put affordability into question. YOY home price growth reached a staggering 44%, and rent has grown 25%. For this reason, demand is slowly waning as people search for more affordable options that are still backed by strong job opportunities.
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The South is heating up
Zillow's predictions for the hottest markets in 2022 aren't the be-all and end-all. But they are a good gauge, considering it looks at recent historical price growth, days on the market, migration trends, job market, and housing inventory.
However, it's important to note that Realtor.com, among other data companies, is seeing notable growth in smaller suburban towns surrounding major metropolitan areas, such as Manchester, New Hampshire (a suburb of Boston); Burlington, North Carolina (a city halfway between Greensboro and Raleigh); Boise, Idaho; and Salt Lake City, Utah.
Additionally, idyllic vacation spots -- such as Kalispell, Montana; Sevierville, Tennessee (in the Blue Ridge Mountains); and several ski towns in Colorado -- are also experiencing high demand, making them noteworthy in America's hot markets.
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