When the COVID pandemic hit, it set off a dramatic uptick in U.S. housing prices, and home price growth is just now beginning to decelerate.
And although U.S. home values are predicted to rise by only 2.9% in 2022 (versus 19.8% in 2021), buyers will still be navigating a seller’s market, according to Realtor.com, a real estate listing site owned by News Corp. Concerns around the Delta and Omicron variants continue to affect return-to-office plans, and many people are still working remotely, which could be a factor in home sales.
But not all areas of the U.S. are headed in the same direction when it comes to homebuying. While home prices are cooling down in New York and Hawaii, they’re heating up in Maine and Massachusetts. If you’re looking to make a real estate investment in the coming year, there are a few markets that are worth taking a closer look at because of their anticipated price increases.
With a predicted home price growth rate of 10%, according to Realtor.com, Portland is the front-runner in terms of anticipated growth in 2022. The most populated city in Maine, Portland is known for its scenic coastline and is a famous summer getaway destination. U.S. News ranked the city No. 8 in its annual Best Places to Live list, and the Portland market has seen an influx of remote workers getting out of pricier markets.
Providence, Rhode Island
The capital of Rhode Island and its most populous city, Providence is expected to see its home prices grow at a rate of 9.5% in the next year, according to Realtor.com. The Rhode Island Association of Realtors reported that the number of out-of-state buyers from places like New York, Massachusetts, and Connecticut increased by 69% in 2021, and called the state as a whole “a haven away from the city.”
Salt Lake City, Utah
The capital of Utah is known for its outdoor recreation, from hiking to skiing. Coming in at No. 23 on U.S. News’ Best Places to Live list, Salt Lake City is expected to see home prices grow by 8.5% over the next year, according to Realtor.com. Salt Lake City currently has about 200,000 residents, but Utah’s population is steadily growing, and the capital is projected to reach 1.7 million people by 2065, according to the University of Utah.
Located in central Massachusetts a little under 50 miles from Boston, Worcester will see home prices grow 8.2% in 2022. Known as the “Heart of the Commonwealth” because of its central location, Worcester is the second-most-populous city in Massachusetts after Boston. The city was also included in Realtor.com’s Top 20 Hottest Housing Markets list earlier this year.