Look for torrid housing value increases to continue in 2022, says real estate research firm Zillow. It forecasts values will climb 14.3% nationally in the 12 months through November.
Zillow economists predict that each of the top 10 markets will rise more than that, with Tampa, heading the list at 24.6%. After that comes Jacksonville, Raleigh, San Antonio, Charlotte, Nashville, Atlanta, Phoenix, Orlando and Austin.
Zillow didn’t specify numbers for the other nine cities.
Tampa benefits from a thriving job market, scarce and fast-moving inventory, and demographics that bring plentiful potential buyers, Zillow said.
“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,” said 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.”
Six of the top 10 markets on Zillow’s list have added more jobs than new homes over the past two years, intensifying the competition for buying.
Zillow sees New York, Milwaukee, San Francisco, Chicago and San Jose as the weakest out of the 50 largest U.S. metro areas. But even there, it expects home values to gain at least 10% in the 12 months through November, except in San Francisco, where the increase is forecast at 9.9%.
Outside the Sun Belt, Zillow sees the hottest markets in the Midwest, with Salt Lake City at 13th, Kansas City at 14th and Oklahoma City at 16th.