On the back of unprecedented demand and plummeting supply, practically all US property markets are solid candidates for the hottest this year. However, within the heat, some destinations stand out ahead of the rest. And yet again, Florida metros take the top positions in the national rankings. This time, it’s Tampa and Jacksonville in first and second place.
More hot markets in Florida
Earlier this year, the property portal Redfin declared Sarasota County as the hot spot for US property in 2022. Redfin included the districts of South Sarasota, East Venice and Englewood as its top three picks for the year.
This time, it’s Zillow’s turn to predict where the busiest markets will be and again, Florida sits at the top. Specifically, Zillow forecasts the nation’s hottest spot will be in Tampa, followed by Jacksonville.
Why Tampa and Jacksonville?
To find the hottest markets for US property this year, Zillow considered several factors, including previous house price growth, demographics, and job creation. In all three of these, Tampa and Jacksonville registered solid figures.
House price growth
Prices for US property skyrocketed during 2021 and Florida was no exception. Zillow forecasts that prices for real estate in Tampa will be the fastest growing in the US this year. The prediction represents a jump from fourth place in 2021.
Jacksonville will see a similar leap. This metro ranked seventh in the house price table last year and, in 2022, stands in third place.
Both Florida metros consistently rank among the places creating the most new jobs in the US and in 2022, both will continue to top the tables. Zillow compares job creation with home building for its statistics and concludes that Tampa has the second-highest rank in the country (0.63 new jobs per new housing unit) after Salt Lake City. Jacksonville is also one of the metros with the highest job gains.
As well as being the nation’s top retirement destination with Southwest Florida at its head, the Sunshine State also appeals to other demographics. As a result, Zillow puts it among the hottest markets for US property this year.
The property portal points out that the Baby Boomer generation is now retiring or looking to downsize with Florida metros among their top choices for relocation. Hot on their heels are the millennials, many of whom will come of buying-a-home-age over the next few years.
According to Zillow, this means that “the 2020s will be a period of sustained underlying demand in the housing market”. It predicts that Austin, Texas will be the market with the higher growth of new households (3.4%). Orlando sits in second position with 2.8% more, followed by Tampa with 2.7%.