By Claire Ballentine
Homebuyers hoping for relief from skyrocketing prices aren’t likely to get any in 2022, according to Zillow.
Growth in home values will exceed 14% nationally through November, the real estate app predicted in an analysis of the “hottest housing markets” released Tuesday. Those in Tampa — which topped the ranking — are expected to increase almost 25%. Jacksonville, Raleigh, San Antonio and Charlotte complete the top five.
Home prices have surged in the past year, with low interest rates and shifts to remote work prompting a wave of new buyers, at the same time that supply shortages plagued the industry. One measure of prices in 20 U.S. cities cooled slightly in October, the latest data available, but hikes in rents could spur more buying in the new year.
Economists at Zillow anticipate price appreciation and high sales volume to continue in 2022, especially as millennials look to buy their first homes and baby boomers eye retirement destinations. That’s especially true for the Florida market, which claimed three of the top 10 spots.
Nashville, Atlanta, Phoenix, Orlando and Austin round out the top 10. The Texas capital was the top market last year, but fell to 10th in the latest report. Denver, Colorado, dropped from fifth place to 15th.
Zillow used home value appreciation estimates and changes in value from the past year, along with figures on new home-owning households and new jobs to calculate the rankings.
Those discouraged by the price increases could look toward the few markets where prices are cooling off: New York, Milwaukee, San Francisco, Chicago and San Jose. Still, values in all of these places are expected to increase by at least 10% in the next year, with San Francisco at 9.9%.
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