The housing market has exploded in recent years due to fluctuating mortgage rates, high demand accompanied by low inventory, as well as remote working opportunities allowing millions to rethink their home base. Americans have begun to rethink their priorities in a living space, many prioritizing space and comfort while others have flocked to bustling metropolises, leading to an exponential increase in home ownership. 

    Whether you are interested in selling your home for a large profit or researching the most friendly market for first-time home buying, Today’s Homeowner conducted a study to rank the hottest (and some of the cooler) housing markets in the United States.

    We analyzed data on the 100 largest MSA’s (Metropolitan Statistical Areas) and ranked them according to seven factors, such as affordability, inventory and population growth. Read on for the complete rankings and explanation of the methodology behind this study.

    Here are some of our most interesting findings:

    Highlights
    • Home prices increased by an average of 21% since 2021
    • The top 10 markets rarely have listings sit on the market for more than 15 days, 40% less than the national average (25 days).
    • Many of the hottest housing markets are also some of the least affordable as demand increases and inventory decreases
    • Home equity has skyrocketed, allowing sellers to make huge profits
    • Home prices are projected to increase another 14.9% before 2023, even with steep mortgage rate increases
    Image Credit: Today’s Homeowner

    Main Findings

    Below you’ll find the cities where homes are flying off the market fastest in ranked order, showing the rank, total score, and specific factor-category rank.


    Summary

    Our analyses found that Tampa-St. Petersburg-Clearwater, Florida, tops the list as the hottest housing market this year. Homes are sitting on the market for the least amount of time before selling, selling for top dollar, and attracting new residents at a rapid rate. Low inventory combined with a quick sale rate contributed to its high score – and it’s important to note that many of the top spots ranked poorly for affordability. 

    As these hot housing markets continue to gain traction, we can assume that affordability will continue to dwindle. The other top 5 spots were rounded out by: 

    • Phoenix-Mesa-Scottsdale, Arizona 
    • Austin-Round Rock, Texas 
    • Seattle-Tacoma-Bellevue, Washington 
    • San Jose-Sunnyvale-Santa Clara, California

    Jackson, Mississippi, Bridgeport-Stamford-Norwalk, Connecticut, Greensboro-High Point, North Carolina, McAllen-Edinburg-Mission, Texas and Winston-Salem, North Carolina received the lowest ranking for hottest housing markets. These markets remain cooler than those that ranked highly due to ample housing inventory and slower population growth. Although it is still a seller’s market, these MSAs may not fly off the market quite as quickly as their high-ranking counterparts.


    Methodology

    To find the hottest housing markets in 2022, we looked at data for the 100 largest MSA’s (Metropolitan Statistical Areas) in the United States. We ranked the cities using three categories:

    • Affordability
    • Inventory
    • Population Growth

    In all, there were 7 factors across those three larger categories that are listed below along with their corresponding weights. Each city was graded on an 85-point scale, with a score of 85 representing the hottest housing market.

    Finally, we determined each city’s weighted average across all categories to calculate its heat score and used the results to rank-order our sample.

    • Home price change percentage 2021 vs. 2022—Double Weight
    • Homes price change percentage 2012 vs. 2022—Full Weight
    • Average price per square foot (measured in hundreds)—Full Weight
    • Majority of homes available below and above the national average of $428,700 (calculated with average home price and factored into a yes or no ratio)— Half Weight
    • Average active home listing per month—1.5 Weight
    • Average days on the market before pending sale—Double Weight
    • Population growth change percentage from 2010 census vs 2020 census data —Half Weight

    Sources

    Editorial Contributors
    avatar for Alora Bopray

    Alora Bopray

    Staff Writer

    Alora Bopray is a digital content producer for the home warranty, HVAC, and plumbing categories at Today's Homeowner. She earned her bachelor's degree in psychology from the University of St. Scholastica and her master's degree from the University of Denver. Before becoming a writer for Today's Homeowner, Alora wrote as a freelance writer for dozens of home improvement clients and informed homeowners about the solar industry as a writer for EcoWatch. When she's not writing, Alora can be found planning her next DIY home improvement project or plotting her next novel.

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    photo of Roxanne Downer

    Roxanne Downer

    Editor

    Roxanne Downer is a commerce editor at Today’s Homeowner, where she tackles everything from foundation repair to solar panel installation. She brings more than 15 years of writing and editing experience to bear in her meticulous approach to ensuring accurate, up-to-date, and engaging content. She’s previously edited for outlets including MSN, Architectural Digest, and Better Homes & Gardens. An alumna of the University of Pennsylvania, Roxanne is now an Oklahoma homeowner, DIY enthusiast, and the proud parent of a playful pug.

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