Zillow Says San Antonio Among Top 10 Hottest Real Estate Markets For 2022

It seemed inevitable. Inevitable, really. With San Antonio’s charm and history, culture and size, it was only a matter of time before the rest of the nation “discovered” the city of Alamo. First, Realtor predicted that the San Antonio real estate market was on track to grow faster than Austin and Houston. Then it’s Redfin, which ranked three local neighborhoods as “hottest” for 2022. Now it’s Zillow, who has ranked San Antonio among the 10 hottest real estate markets of the year.

To determine the ranking, Zillow analyzed the 50 largest metropolitan areas in the United States to forecast the most competitive housing markets in 2022 using some of the following analysis points:

  • expected appreciation of the home’s value from November 2021 to November 2022
  • expected change in the appreciation of the value of the house from 2021
  • inventory flow for sale
  • estimate of the net number of new owner households based on current demographic trends
  • new jobs per new housing unit authorized

San Antonio came in at No. 4, with other cities concentrated primarily in what Zillow calls “the belt of the sun.” The real estate company notes job growth in San Antonio as a key driver of its housing market.

This job growth is particularly impressive considering that we are still in the midst of a pandemic. In the past year, San Antonio has created nearly 49,000 jobs, according to a Dec. 17 report by the Express-News. And, those gigs are more likely to pay off in the six figures. As the Express-News reported last week, San Antonio-New Braunfels is among the regions that experienced the strongest growth in well-paying jobs between 2015 and 2020.

Tampa, which is rated as the nation’s “hottest” real estate market at No. 1; Jacksonville, Florida (2); Raleigh, North Carolina (3); and Charlotte, North Carolina (5).

The only other Texas city on the list is Austin at No. 10, a dramatic drop from last year when Zillow crowned it the hottest housing market in the country. (They weren’t wrong; the median Austin-Round Rock home price in November 2021 was $ 470,000, a 29% increase from the previous year, according to the Austin Board of Realtors.)

Home prices in Alamo City and across the country are expected to rise, Zillow says.

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This dramatic increase in housing across the country is due, in part, to generational convergence.

“Baby boomers and millennials are two huge generations, both very active in the housing market,” writes Zillow in his report. “Baby boomers barely leave the market as they get older, stay active and buy homes in the Sun Belt when they retire and / or move to be closer to their grandchildren, etc.” their early and mid-thirties. “

According to Zillow, a “sustained underlying demand” for housing will continue through the 1920s, as Millennials age in their home buying years and baby boomers continue to take home. their retirement and move. However, there is one key factor that can cause these trends to shift slightly. Mortgage interest rates were drastically reduced during the pandemic – one of the reasons for the recent housing boom – but they are expected to rise again in 2022.

Either way, Zillow says buyers should expect home prices to continue to rise, even in cities like San Jose, New York and San Francisco, where the market is slowing. The reason? Inventory.

“The stock of available homes has been limited as builders catch up after years of under-construction and sellers list their homes in fewer numbers,” Zillow said in the report. “None of these trends are expected to change much in 2022 from 2021, and the limited supply of housing coupled with skyrocketing housing demand is a classic Econ 101 recipe for increasing home values.”

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