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Developers are already working on ways to get around the ban in cities like New York and San Francisco. Some developers have been looking for less-regulated states with more flexible zoning laws, but there’s also a lot of interest from international buyers who can’t access these markets easily.
The “worst housing markets in u.s. 2022” is a list of the 10 states with the strongest housing markets in the United States. This list includes California, Florida, and Texas.
Buyers may be eager to check out their next house purchase, with the national housing market exhibiting consistent rise from 4.54 million sales in 2011 to 6.44 million expected sales in 2019. However, this national tendency does not always reflect the strength of any state’s housing market. Indeed, state economies are always in flux, with many experiencing slow development or even stagnation.
Homebuyers must understand what to anticipate from housing markets around the nation before choosing the ideal location for their dream house. Fit Small Business completed the list, which was based on the most recent statistics on average property prices, mortgage rates, inventories, new construction, and family income in each state.
The following are the five criteria we used to rank the hottest real estate markets in 2019:
- Housing prices (30%): Because price is the fundamental criteria for inclusion and exclusion in a home search for buyers, housing prices are considered the most important measure of total housing market health. Home prices that are higher imply a “hot” market where properties are in high demand.
- Available inventory (20%): The amount of inventory available in a market is crucial. Lower inventory implies the customer has fewer options and, as a result, makes fewer purchases. A robust housing market is created when more inventory is combined with buyer interest and financial health.
- New building (20%): For middle-market or starter homes, new construction brings neighborhood expansion. New building expands property options for consumers on a tight budget and demonstrates the housing market’s overall expansion.
- Household income (15%): Of course, household income is important when purchasing a property. Home purchases are less probable with lower salaries, but they are eminently doable with greater wages. As a result, higher salaries signal a stronger housing market.
- High mortgage rates (15%) are critical to the housing market’s health. While there are a variety of reasons why mortgage rates are high, we used them in this research as an indication of buyer demand for house loans, suggesting a “hot” market. This, on the other hand, may be a deterrent to purchasing.
The ten states with the best housing markets (with the median home price included for reference)
The top ten states with the best housing markets in 2019 are shown below.
1. The state of California
Tower Bridge, Sacramento, California | Photo courtesy of Pixabay user Falkenpost
In four of the five data points—income levels, new development, available housing inventory, and mortgage rates—California performs well. California has some of the highest income levels in the country, with an average yearly income of $67,169. The annual rate of new building is 62,236 units, and the annual rate of housing inventory is 762,952, both of which are among the highest in the country. Mortgage rates are exactly in the center at 3.3 percent, with a typical house price of $544,000 on the high end.
California’s vastness and seaside attraction contribute to the state’s housing strength. As previously said, the size allows for a big inventory, while residences on the water attract homeowners looking for beachfront properties. This helps to explain the high median house price, which is backed up by a similarly high average earnings.
2. The state of Colorado
Denver, Colorado | Photo courtesy of Pixabay user mrminibike
With a high family income, a large new construction and existing housing inventory, and lower average housing costs, Colorado comes in second. Colorado’s mortgage rates are among the highest in the country, at 4.28 percent. Colorado’s average household income is $65,458 per year. Every year, new house building adds 29,061 properties to the current inventory of 139,336. The average cost of a single-family house is $419,000.
Colorado has a robust housing market due to its reduced property prices and high average yearly family income. Buyers have a diverse range of options when it comes to housing inventory, which includes both new construction and existing houses, ranging from starter homes to move-up housing. The increased interest rates in Colorado are one data point that is concerning, since it indicates that purchasers may end up paying a lot of interest over the life of a house loan.
3. Texas
Austin, Texas | Unsplash photo by Jeremy Banks
Because to their high rating for new construction at 123,249 and current inventory at 867,217, Texas is the third strongest housing market by state on our list. Although the state has a modest median home cost of $279,900, mortgage rates are among the highest of all states, at 4.36 percent. With a median household income of $57,051, all states are in the center.
Texas has a burgeoning housing market, both to new development and current inventory, providing buyers with a diverse range of options. The sole drawback for purchasers in Texas is the mortgage rates, which are offset by a low average dwelling cost and a solid family income. Nonetheless, this shows that it is a popular marketing strategy in 2019.
4. The United States of America
The Space Needle in Seattle, Washington | Image courtesy of Pixabay user David Mark
Washington has the fourth-best housing market in the country, thanks to a stock of 179,169 existing homes and annual growth of 23,356 new homes. The median house price in this growing property market is $395,000, with a statewide average income of $66,174 per year. At 4.2 percent, the mortgage rate is among the highest in our rating.
The robust housing market in Washington is fueled by a huge number of new and existing properties priced under $400,000. As a result, both first-time and second-time purchasers have options for finding the ideal property to match their budget and family’s demands. With an annual family income in the top ten percent of our rankings, Washington purchasers are only subjected to higher mortgage rates, which are also a problem in Colorado and Texas.
Virginia is number five.
Monticello near Charlottesville, Virginia | Photo courtesy of Pixabay user skeeze
Virginia’s housing market combines a high household income of $68,766 with a low average home price of $314,970. Virginia is among the top 15 states for new house development, with 21,139 new homes created per year to complement the current inventory of 238,948 dwellings. At 4.21 percent, the mortgage rate is still high, matching many of the top real estate cities identified so far.
With a low average house price and a large variety of homes to choose from, the Virginia housing market has a lot of potential. Buyers with a high yearly family income may easily qualify for a mortgage and choose residences that fit their budget. The mortgage rate, like those of the other states on this list, is among the highest in the country. Buyers should browse around for the best mortgage rate or consider refinancing later if rates decrease.
New Jersey is number six.
The Boardwalk in Atlantic City, New Jersey | Photo courtesy of Pixabay user Bruce Emmerling
Because their average household income of $76,475 and home price of $334,900 are signs of both a healthy economy and a strong housing market, New Jersey is in the second half of our ranking of hottest real estate markets. However, with 397,779 existing houses on the market and just 10,452 new homes created each year, starter homes may be hard to come by. In any property market, a mortgage rate of 4.1 percent is excessive.
New Jersey’s housing market is suitable for people looking for an existing home since the quantity of starter homes is quite low. Fortunately, the high average family income corresponds to the median property price, making existing residences in the mid-price range affordable. While the dearth of lower-cost new development may keep some first-time buyers out of the market, the favorable inventory of existing houses makes New Jersey a wonderful place to live for those with a higher income.
New York is number seven.
Grand Central Station, New York, New York | Photo courtesy of Unsplash user Robert Bye
New York’s housing market has 352,514 existing residences and a favorable average yearly income of $62,765. However, with just 10,622 new units brought to the market this year, new building is modest. With a 4.15 percent average mortgage rate, the typical house costs $385,000, making it one of the most expensive in the country.
New York is comparable to New Jersey in that home costs are significantly higher and yearly family income is lower. The large inventory of existing houses, on the other hand, generates a pretty robust market by providing buyers an edge over sellers who are seeking to sell their homes. This might make it easier for first-time purchasers to enter the market by enabling them to negotiate a price that suits their budget.
Florida is ranked number eight.
Miami, Florida | Image courtesy of Pixabay user yanivmatza
Florida’s housing market is booming, with 94,836 new homes being built last year, adding to the current inventory of 871,758 homes. While the state’s yearly household income is modest, at $50,883, the state’s median housing price of $294,900 makes home ownership a viable choice for people. At 4.22 percent, the mortgage rate is quite expensive.
Florida is one of the hottest real estate markets, thanks to an increase in new building and the availability of older homes. Furthermore, property costs are quite reasonable, and residences are often situated in attractive waterfront areas.
Maryland is number nine.
Baltimore, Maryland | Photo courtesy of Pixabay user Bruce Emmerling
The citizens of Maryland have a lot of money. The high yearly family income of $78,916 is readily met by the moderate home costs of $325,000, which is the highest in the country. Furthermore, the substantial inventory of homes on the market remains at 147,556, not to mention the mere 12,797 new construction units added to the mix last year. The mortgage rate, on the other hand, is now at an unfavorable 4.09 percent.
Because Maryland is one of the smaller states in terms of geographical area, new building is projected to be restricted. Other indicators, such as yearly income and housing costs, indicate that residences are affordable to qualified purchasers. Maryland buyers are set for one of the hottest real estate markets of 2019, with the highest income in the country and plenty of pre-existing inventory. Maryland mortgage rates, like those in other states, will be a pricey factor.
10. Utah
Monument Valley, Utah | Photo courtesy of Pixabay user Brigitte Werner
Due to the average family income of $65,325 and reasonable property prices of $350,000, Utah is poised to become one of the top real estate markets in the country. New building is at an all-time high of 18,851, with 105,289 existing homes on the market. Utah finishes out our ranking of the top 10 states with the best housing markets in 2019 with an interest rate of 4.1 percent, which is in line with the other prospering areas on our list.
Because of the flood of new development combined with a reasonable inventory of older properties, Utah real estate is prospering. This provides purchasers with a wide range of options and the ability to choose the ideal home for their requirements and budget. Buyers who have a greater family income are more likely to be mortgage-eligible and ready to buy, even if the interest rate is higher.
All 50 States are ranked.
To view all of the data used in our research, go here.
Methodology
We analyzed five key data indicators, which were weighted based on their effect or impact on housing markets, to rank the top 10 states with the strongest housing markets. The following are the data points:
30 percent increase in housing prices
Because housing price is generally the main filter used by purchasers looking for a home, it was given the highest weight of all the data pieces. If typical house costs are too high, buyers will either look for smaller residences to fit their budget or postpone their purchase until housing prices fall.
20% of inventory is available.
The amount of residences accessible to prospective purchasers is indicated by available inventory, which is an important data item. When there are fewer properties on the market, sellers generally have an edge over buyers, resulting in higher average property prices. Buyers will have the benefit of choice in areas where there are an abundance of properties on the market, and prices will drop to be competitive.
20 percent of new construction
New builds, often known as starter homes, are an important element of the equation since they are frequently chosen by first-time or low-income purchasers. Those who are unable to purchase a property owing to a lack of availability or excessive home prices may often rent instead.
15 percent of household income
A buyer’s ability to purchase a property in a particular market is determined by their household income. When housing costs exceed family income in a given location, individuals cannot afford to purchase and must instead rent. Renters leave their properties on the market when no purchasers are available, resulting in a glut of unsold property. As a result, the housing market is weakened.
Mortgage Interest Rates: 15%
Mortgage rates are a critical measure of the health of a property market. Low interest rates indicate that lenders are attempting to promote the housing market by persuading purchasers to fund a house purchase. Higher rates, although more expensive for the buyer, signal that there are a lot of people looking for house loans.
The Bottom Line: The States with the Strongest Housing Markets in 2019
Property prices, available inventory, new construction, family income, and mortgage rates were the primary influences of a market’s health in the states that placed in the top ten for strongest housing markets. Markets boom when income is high and home costs are cheap. While high mortgage rates might be a deterrent to buying, they usually signify fierce competition for house loans and, as a result, a healthy market.
When you’re ready to purchase a house, you’ll need to go through intricate contracts, offer letters, and real estate documents such as inspection reports. Before you make an expensive mistake, have Rocket Lawyer analyze your real estate legal paperwork and answer your questions. Go to Rocket Lawyer for more information.’s website for additional information and to locate a legal practitioner, click the “Ask a question” button.
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The “housing market by state 2022” is a list of the 10 states with the strongest housing markets. The list includes the average number of days on market, and how many homes are currently for sale.
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