Utah Association of Realtors
The hot housing market in Salt Lake City is expected to continue next year. That’s according to the Realtor.com 2022 Housing Forecast that ranks SLC as the nation’s top housing market for 2022.
Realtor.com expects SLC to lead the nation with 23.7% combined growth in sales and prices next year. They expect sales to rise 15.2%, and prices to increase 8.5%.
Also on the list are Boise, Idaho; Spokane, Wash.; Indianapolis, Ind.; Columbus, Ohio; Providence, R.I.; Greenville, South Carolina; Seattle, Wash.; Worcester, Mass.; and Tampa, Fla. Realtor.com says growth in these areas is being “driven by strong local economies, tech sector job growth and relative affordability.”
“This year’s list spans a variety of geographic hotspots, reflecting how pandemic trends like the rise in remote work are enabling many homebuyers to explore new areas where their budgets stretch further,” said Realtor.com Chief Economist Danielle Hale. “The top 10 markets share a number of commonalities that are driving demand from millennial remote workers to retirees alike, including those from major coastal metros.”
Realtor.com lists four trends that it says are driving growth in these housing hot spots:
Tech jobs without the crowds
Strong job markets, low unemployment and job opportunities are driving growth in the top 10 markets. At over 7%, the report notes that Salt Lake has a higher share of STEM jobs than the average 6.5% for the top 100 metros.
Magnets for big city remote workers
The report says the increase in workplace flexibility is attracting big city workers to smaller areas.
“Located on the Northern side of the state, Salt Lake is an outdoor enthusiast’s dream with its close proximity to some of the best skiing, hiking, fishing, [and] mountain biking in the country,” the report said. “Since the beginning of the pandemic, remote work has prompted an influx of transplants from California and Colorado looking for affordable homes, low cost of living and good schools.”
Hotspots for both millennials and retirees
With millennials as key drivers of the real estate market, Salt Lake’s large share of younger millennials will help drive housing demand. For example, Salt Lake’s 18% share of millennials ages 25-34 is higher than the 15% share among the nation’s top 100 metros.
Relatively affordable home prices that are projected to rise
Even though Salt Lake home prices higher than the national median, the report notes that it has “lower prices than key big-city feeder markets.” The report also says house sizes on the top 10 list are relatively larger than the 100-metro average so a buyer might be able to get more home for their money in these areas.
“With thriving local economies, low unemployment rates, convenient access to the outdoors and relatively affordable housing, many of the top markets offer the best of both small town quality of life and big city job security,” Hale said. “Home shoppers in these areas may still be able to find good value even as listing prices are expected to climb in 2022, but getting a leg up on the competition will be key. For buyers with more flexible timelines — such as those making a move from a big city — offering a couple extra months on the closing date could sweeten the deal for sellers who also need to buy their next home.”
In addition to Salt Lake’s No. 1 spot on Realtor.com’s list, Utah recently ranked second on a separate list that tracks changes in home prices. With home prices increasing 30% between the third quarters of 2020 and 2021, Utah was second only to Idaho’s nearly 36% gain, according to the Federal Housing Finance Agency.
To learn more about home prices and housing market conditions in your own neighborhood, contact a local Realtor. Find one at UtahRealtors.com.