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An analysis of “competitive” markets in 2021 projects that Tampa will be the hottest in the U.S. this year, with Jacksonville and Orlando close behind.

ORLANDO, Fla. – An analysis of the 50 largest U.S. metro areas to determine “the hottest” (most competitive) for 2022 determined that Tampa was No. 1 in the U.S.

To determine hotness, the study released by Zillow looked at home value appreciation from November 2021 to November 2022, anticipated change in home value appreciation from 2021, the flow of for-sale inventory, an estimate of the net new number of home-owning households based on current demographic trends and new jobs per new housing unit permitted.

Of the top 10 hot home markets, two other Florida metro areas also made the list: Jacksonville in the No. 2 spot, and Orlando at No. 9. Last year’s No. 1 hottest market, Austin, Texas, fell to No. 10 this year.

The economists who oversee the yearly ranking say shoppers in the hot markets will likely face strong competition, rising prices and limited inventory that’s snatched off the market quickly. The study finds Tampa, for example, has strong forecasted home value growth, a thriving job market, relatively scarce and fast-moving inventory, and demographics that indicate a good number of potential buyers.

“Homebuyers 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. “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.”

10 hottest housing markets of 2022

  1. Tampa
  2. Jacksonville
  3. Raleigh
  4. San Antonio
  5. Charlotte
  6. Nashville
  7. Atlanta
  8. Phoenix
  9. Orlando
  10. Austin

In addition to Austin’s fall from No. 1 to No. 10, Denver dropped off the top 10 list (No. 5 last year, No. 15 this year).

Outside the Sun Belt, the hottest 2022 markets are expected to be in the Midwest. Salt Lake City (No. 13), Kansas City (No. 14), Oklahoma City (No. 16) – which is sometimes considered a Sun Belt city depending on where the border is drawn – Columbus (No. 17) and Indianapolis (No. 18) just missed the top 10 list.

© 2022 Florida Realtors®

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Author: kerrys