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2021 was another record-breaking year for the U.S. housing market. Experts expect the market to cool down slightly according to some metrics in 2022, but records will still be broken.
Here’s what to expect in 2022.
Read More: 2021 Housing Trends and Forecasts
Home prices are expected to continue increasing at 2.9% - 5%, a more modest growth rate than we saw in 2021.
On the other hand, home sales growth is expected to reach 16-year highs in some areas at 6.6%, outpacing 2021.
Read More: Statistics About Home Sales During Covid-19
Over 45 million millennials ages 26 to 35 are expected to propel housing demand as they purchase their first home in 2022.
Read More: Home Buyers Before and During Covid-19
Rebounding from slow growth early in the pandemic, rent is forecasted to grow around 7.1% in 2022.
Read More: The Pros and Cons of Renting vs. Buying
With remote work becoming ever more popular, people are finding themselves interested in relocating further away from the office to get closer to nature in the beach or mountains.
Read More: Kingsport, TN – Emerging Housing Market Fall 2021
The demand for new homes is there, but labor shortages and supply chain snags will continue to limit progress.
It’s a bit of an unknown as to when climate change will become a dominating factor in the real estate market. Experts expect to see an increase in home inspections due to weather and fire, and we may begin to see more energy efficient models in new construction.
Read More: Home Inspection FAQ
Housing market predictions can help you get an idea of what to expect when buying or selling a home, but they shouldn’t dictate your decisions. Navigating this complicated market is simpler with an expert on your side. Blue Ridge Properties has you covered. Browse our agents here: https://www.brphomes.com/Agents or contact us online, by phone (423-247-4181), or in person at one of our offices.