(The Center Square) – As more people move to Florida, Tampa leads the U.S. as the hottest housing market this year, with Jacksonville not far behind, according to a new report published by Zillow, an online real estate marketplace company.
While all of the nation’s 50 largest markets are expected to grow this year, “there can be only one Number One,” Zillow reports, expecting “Tampa to top the list, with a host of relatively affordable and fast-growing Sun Belt markets following closely behind.”
Following Tampa are Jacksonville, Raleigh, San Antonio and Charlotte as the five hottest markets for 2022, “each buoyed by a combination of strong forecasted home value growth, strong economic fundamentals including high job growth, fast-moving inventory and plentiful likely buyers,” the report states.
Home values increased 28.7% from October 2020 to October 2021, with an average Tampa Bay home selling for $316,379, Zillow reported.
As of October 2021, the median price of single-family homes grew by 22.1% to $348,000, Marco Santarelli with Norada Real Estate Investments reports, with the median price “still rising in double-digits.”
In December 2021, Tampa home prices were up 13.9% compared to last year, selling for a median price of $336,000, Redfin reports.
On average, homes in Tampa sold 11 days on the market compared to 18 days in 2020 over the same time period. In both September and October, homes spent a median of six days on the market, Zillow reported.
The year-to-date closed sales in the Tampa-St. Petersburg-Clearwater MSA as of January 8, 2022, Santarelli notes, are up 9.2%. The dollar volume last October was $1.8 billion, a 10.3% year-over-year increase, and year-to-date, $18.5 billion, a 32.3% increase.
Cash sales in December were up 43.4% from last year, Santerelli notes, with the percentage of closed sales paid in cash up by 51.6%.
“This indicates the extent to which investors are participating in the market with many possible exceptions,” he said, adding that “a massive influx of out-of-state cash buyers resulting in soaring prices” was a significant factor.
Tampa also saw year-over-year rental growth with annual rent appreciation up 27.4% compared to 2020, according to Zillow.
“The strong growth in rent in 2021 provides some evidence for overall growth in demand for housing: More people are trying to get a place of their own to live, whether they are renting or purchasing, thanks to a booming population of 25-34 year-olds, as well as rising incomes,” Zillow reports.
Tampa sales are up as more people are moving to Florida, its economy continues to outpace the nation’s, and Florida ranked the most free state economically last year.
Florida ranked the second-most popular destination for movers renting U-Haul trucks for one-way moves last year, according to data compiled by U-Haul’s annual Growth Index.
It also saw the largest net domestic migration gain from April 2020 to December 2021, the U.S. Census Bureau reported, the second-greatest growth numerically, and a positive net international migration.
By November 2021, Florida’s job growth was six times faster than the nation’s. Florida’s economy was growing because “we’ve worked hard to keep Florida open and protect the jobs of individual Floridians,” Gov. Ron DeSantis said. “Because we have protected their livelihoods, Floridians are confident in finding work and operating their own businesses. We will continue to focus on our state’s foundation of freedom to ensure that Florida remains a leader in economic growth and Floridians are able to succeed.”
By November, Florida had gained 1,162,700 private sector jobs since April 2020, representing “93.5% of jobs lost during the pandemic that have been recovered,” the state workforce agency reported.
Six months earlier, DeSantis had reopened the state while most were still on lockdown. He maintains that more people are moving to Florida because of its pro-growth and anti-lockdown policies, a position he’s consistently held.