AUSTIN, Texas — No. 1 no longer – at least, according to Zillow.
In 2021, Zillow named Austin the hottest housing market in the country. But the real estate marketplace company announced on Jan. 4 that Austin is expected to fall to No. 10 in 2022.
Zillow expects Tampa, Florida, to be the No. 1 market this year, with several Sun Belt markets following close behind. The top five include Jacksonville, Florida (No. 2); Raleigh, N.C. (No. 3); San Antonio, Texas (No. 4); and Charlotte, N.C. (No. 5).
Zillow says these markets are expected to be hot in 2022 due to a combination of strong forecasted home growth, fast-moving inventory, strong economic fundamentals and plentiful likely buyers. Zillow also said these markets have historically not been particularly sensitive to rising mortgage interest rates or a slowing stock market.
Zillow expects the coolest markets of 2022 to be New York, Milwaukee, San Francisco, Chicago and San Jose, California.
The Zillow report does note that Austin has seen recent job gains and that, in 2022, Austin is expected to be the market with the most demographic lift in the for-sale market. Zillow said a trend suggests the formation of 3.4% more owning households, "assuming there are homes available for them to buy."
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