2021 was a wild year for the real estate market. A confluence of factors led to a huge rise in the cost of homes in the USA, particularly in several major cities. A problem shared amongst markets in the United States is that supply currently can’t meet demand. This is driving up prices, with an increase in competition. Combine this with the fact that buyers in places like Los Angeles, New York City, and San Francisco now appear more willing to look for homes outside of these primary cities, many less traditional markets are surging.
Let’s look at some real estate markets that skyrocketed in 2021 and are poised to continue that major momentum throughout 2022.
Austin, Texas
Austin has been a surging real estate market for years now, with consistent stratospheric growth. The combination of the cities rising economy, led by Apple and Tesla opening major offices within, and the great local culture and entertainment have led to Austin being seen as one of the most desirable places in the country. The low tax rates don’t hurt either.
According to a Norada Real Estate report, the median home price in Austin has risen to $470,000 as of November 2021. This price broke a record for November in the city. It was a 29% increase year-over-year from 2020. This is the continuation of years of growth for Austin, and its status as one of America’s hottest markets will likely persist throughout 2022.
Naples, Florida
Florida is one of the biggest beneficiaries of some of the shifts from the pandemic, with people flocking to different Florida cities due to the great weather, ocean access, and low taxes. This spot could’ve gone to Tampa or several other Florida cities that experienced rapid growth in 2021, but Naples had an astonishing 2021 that deserves mention. Naples is a city on the smaller side, located along the Gulf of Mexico. It is popular for fishing, boating, and dolphin spotting, and it surged in 2021.
Naples’s real estate market has been steadily climbing since the start of 2020, but in 2021, it went stratospheric. According to RedFin, in December 2020, the median sales price in Naples was $429,000. A year later, in December 2021, it was $559,450. This is year-over-year growth of 30.4%. This level of growth inside of a year is unheard of in Naples.
Boise, Idaho
Cities with great access to the natural scenery and outdoor activities have never been in higher demand, as lockdown made many reorient what they’re looking for in a home. Boise, a city with stunning mountains, rivers, and parks, is a natural beneficiary. It doesn’t hurt that Boise’s economy has been surging recently, with a growing number of jobs.
Boise used to be notable for affordable homes, but this seems to no longer be the case. According to a report by Norada Real Estate, the median sales price for a home in Boise rose to $510,000 in December 2021, a 21% jump from December 2020. It tied a record for the region’s highest monthly median sales price, which was set just months prior, in August of 2021.
Nashville, Tennessee
Like many of the others on this list, Nashville has been a growing city for several years. It is best known as one of the entertainment capitals of the United States. With a booming nightlife, great food, and tons of incredible live music, there’s a lot to enjoy in Nashville. It is also a city rising in economic significance, with a lot of different tech companies moving over.
Just five years ago, in December of 2016, the median sales price of a home in Nashville was $240,000. That number has been rapidly climbing since then, culminating in a 2021 year that broke records. According to Redfin, the median sales price in Nashville was $413,190 in December of 2021. This was an all-time high monthly median and a 23.3% increase over December 2020.
Phoenix, Arizona
Phoenix is Arizona’s biggest city, a desert oasis that has a vibrant local culture. Phoenix and the areas surrounding it have been consistently growing and gaining popularity every year. Right now, Phoenix is one of the biggest cities in the country and a regional economic powerhouse. Real estate prices have risen accordingly. According to Redfin, home values in Phoenix have nearly doubled since 2016.
The median price of a home in Phoenix was a meager $218,000 in 2016. Since then, prices have consistently gone upwards every year. However, no year can match the growth of 2021, where home costs hit an all-time high. In December of 2021, the median cost of a Phoenix home was $417,000. This was an incredibly high 30.3% increase from December 2020.
