2022 Housing Market 12 months In Evaluation

17 housing developments that outlined the yr, together with report residence costs and sky-high mortgage charges

The 2022 housing market was nothing wanting exceptional. The pandemic and ensuing distant work continued to outline how, when, and the place individuals purchased properties. The median U.S. residence value hit a report excessive earlier than falling barely. Rising rents stretched renters’ budgets. Excessive inflation put elevated stress on nearly everybody. For the primary time in historical past, mortgage charges doubled within the span of only one yr. The checklist goes on

Generally, 2022 was a response to the dramatic actual property growth in 2021. The yr began with a surge in costs and progress throughout the board earlier than falling alongside report inflation within the fall. November and December noticed a a lot slower and seasonally-expected housing market, with year-over-year adjustments in lease costs, home costs, and rates of interest both falling or slowing down. 

Under is a non-exhaustive checklist of information factors and visuals that outlined the 2022 housing market. 

Table of Contents

1. Residence costs rose to an all-time excessive

In Could, the everyday residence bought for $430,365, a report excessive since information started in 1963, shattering 2021’s excessive of $386,000. In March, the median sale value rose 16.8% yr over yr, the biggest share improve during the last 5 years. Following the pandemic, demand skyrocketed whereas provide remained traditionally low, inflicting a extreme housing scarcity and value growth that continued all through 2021 and peaked halfway via 2022. In April and Could, mortgage charges rose to fight rising inflation, which started reversing housing developments from earlier within the yr. 

Regardless of a rapidly cooling housing market, costs are nonetheless greater immediately than any earlier yr on report. 


2. San Francisco was the costliest metro space for homebuyers in 2022 

The median sale value of a house in San Francisco was $1,505,000 in 2022, up 0.3% yr over yr. For one week in April, the median value reached a excessive of $1,700,000, just under 2021’s all-time excessive of $1,728,000. Because the yr went on, costs dropped nearer to pre-pandemic ranges, which is able to possible proceed till mortgage charges fall additional.  

  • Six of the highest ten most costly metros had been in California.
  • Many Florida metros skilled the biggest year-over-year value progress, together with Tampa (18%), Orlando (14.9%), Jacksonville (14.7%), and Miami (14.2%).
  • Tampa had the biggest year-over-year value progress of all giant metros within the nation. 

The highest ten most costly cities to purchase a house in 2022

Median sale value
12 months-over-year change

San Francisco, CA



San Jose, CA



Anaheim, CA



Oakland, CA 



Los Angeles, CA



San Diego, CA $815,000


Seattle, WA



New York, NY



Boston, MA



Nassau County, NY



Knowledge contains the yearly aggregated median sale costs out of all properties bought in every of the 50 largest metropolitan areas. Knowledge doesn’t have in mind native median incomes and residential affordability. 

3. Detroit was the least costly metro space for homebuyers in 2022

The median sale value for a house in Detroit was $165,000 in 2022, up 3.3% yr over yr. Residence costs in Detroit hit $213,000 for every week in June, making it the costliest month of the yr however nonetheless almost 50% decrease than the nationwide median. Generally, year-over-year value will increase in 2022 had been smaller throughout most main metros than in 2021, and progress dipped additional heading into the primary week of December. 

  • The highest ten least costly metros had been all situated within the Rust Belt, a geographic area close to the Nice Lakes.
  • Philadelphia was the one giant metro that skilled a value lower in 2022.
  • Kansas Metropolis, MO was the eleventh least costly metro, and the primary non-Rust-Belt metro on the checklist.

The highest ten least costly cities to purchase a house in 2022

Median sale value
12 months-over-year change

Detroit, MI 



Cleveland, OH 



Pittsburgh, PA



St. Louis, MO



Cincinnati, OH



Philadelphia, PA



Milwaukee, WI 



Warren, MI



Indianapolis, IN



Columbus, OH



Knowledge contains the yearly aggregated median sale costs out of all properties bought in every of the 50 largest metropolitan areas. Knowledge doesn’t have in mind native median incomes and residential affordability. 

4. Hire costs rose dramatically as provide struggled to maintain up with demand

Hire costs in 2022 had been 12.8% greater than they had been in 2021. Nationwide, the median lease value rose to $2,053 in August earlier than dipping barely, the very best on report and a 12.3% improve year-over-year. Following the pandemic, lease costs skyrocketed largely due to a lack of supply and a boom in demand, each of that are simply now balancing out.

  • Median lease costs in New York rose to over $4,000, retaining its dominance as the costliest metro for renters within the nation.
  • Lots of the least costly metros skilled the very best year-over-year lease will increase, together with Oklahoma Metropolis (23.3%), Cincinnati (17.6%), and Pittsburgh (14.8%).
  • Oklahoma Metropolis skilled the very best year-over-year lease will increase within the nation.  
  • Hire progress has constantly outpaced wages for many years, however the most recent data states {that a} staggering 40% of renters spent greater than 30% of their revenue on lease from 2017-2021.

There are at present over 1.1 million rental models beneath building within the U.S., which is able to come out there for lease over the following yr, serving to to alleviate a part of the housing scarcity.

“We count on rents to fall in almost each a part of the nation by the center of 2023 as provide begins overtaking demand,” notes Taylor Marr, Redfin Deputy Chief Economist. “Whereas renters usually get the perfect deal through the winter months as demand is decrease, rents are persevering with to ease. Due to this, there gained’t be as a lot of a seasonal improve come spring, and thus persistence for a very good deal will repay. And don’t be afraid to barter; some landlords could also be open to concessions like a free month’s lease or free parking.”


The highest ten most costly cities for renters in 2022

Median lease value
12 months-over-year change

New York, NY



Boston, MA



San Francisco, CA



San Jose, CA



Los Angeles, CA



San Diego, CA



Miami, FL



Seattle, WA



Sacramento, CA



Denver, CO



The highest ten least costly cities for renters in 2022

Median lease value
12 months-over-year change

Oklahoma Metropolis, OK

$1,308 +23.3%

Louisville, KY



San Antonio, TX



Cleveland, OH



Indianapolis, IN



Kansas Metropolis, MO



St. Louis, MO



Buffalo, NY



Columbus, OH



Memphis, TN $1,581


Knowledge contains the 2022 aggregated median lease costs for every of the 50 largest metropolitan areas in comparison with 2021 knowledge from the identical interval. Knowledge is the median of all 0-3 bed room rental properties. 

5. Homebuyers seeking to relocate favored Solar-Belt cities

24.1% of homebuyers appeared to maneuver to a distinct metro through the three months ending in November. That is on par with the report excessive of 24.2% within the third quarter and up from 19.1% in 2019. 

  • Homebuyers appeared to maneuver to sunny, comparatively reasonably priced areas, with Miami, Tampa, Las Vegas, and Phoenix being the preferred locations.
  • Homebuyers appeared to maneuver away from costly coastal metros like San Francisco, Los Angeles, and New York, which topped the checklist.
  • 100% of properties in lots of widespread relocation metros skilled extreme drought prior to now yr, together with Phoenix, Las Vegas, and Sacramento.

“Just like 2021, continued progress in distant work and a need for housing affordability drove relocation patterns in 2022,” Marr continues. “Nonetheless, developments in some widespread locations reversed course after they turned too widespread, aggressive, and costly. Cities like Salt Lake Metropolis, Phoenix, Tucson, Dallas, and San Antonio all declined in reputation in 2022.”

Knowledge is the % of Redfin.com customers trying to find properties outdoors their metro. Knowledge is the yr median mixture of a number of three month shifting aggregates and doesn’t embody September-December. Sustain with the newest migration information right here

6. Inflation rose at a report tempo, affecting each side of the housing market

The costs of products and providers rose to six.48% yr over yr in November, the very best share since August 1982 and greater than double the speed from November 2021. In reality, inflation charges have doubled in comparison with the earlier yr in each month since June. Rising costs severely restricted client spending and slowed almost each side of the housing market. 

    • To fight the historic inflation, the Fed raised its goal rate of interest to 4.5%, the highest in 15 years.
    • Skyrocketing rates of interest prompted mortgage charges to rise and elevated fears of a recession, retaining homebuyers out of the housing market.
    • Inflation rose the quickest in pandemic boomtowns due partly to the sudden soar in home costs, which is a key contributor to inflation.

Knowledge courtesy of FRED. Knowledge measures core CPI (much less meals and vitality) via November 2022. 

7. Mortgage charges ballooned to almost 7% in response to report inflation

After a long time of falling mortgage charges, in 2022, charges climbed to almost 7% in each October and November, greater than any level since 2002. In reality, from October 2021 to October 2022, mortgage charges doubled in a single yr for the primary time in historical past. 

Because the yr got here to an in depth, optimistic inflation knowledge helped cut back housing rates of interest to under 7%.

  • In widespread migration metros like Phoenix, Las Vegas, and Austin, greater mortgage charges and costly residence costs harm patrons essentially the most.
  • In Phoenix, for instance, as mortgage charges climbed in Could and June, solely 21.5% of properties had been reasonably priced to patrons with a $2,500 month-to-month mortgage price range – a 28.5% drop from 2021.

Excessive inflation and rising mortgage charges typically deter patrons, however should you’re capable of afford it, possession would be the higher choice. “Homeownership is a long-term funding that may result in important web value positive factors, even with charges above 6%,” advises Dean Hayes, Space Gross sales Supervisor with Bay Equity, a Redfin firm. “Mortgage charges will possible go down within the new yr, which means extra residence patrons will return to the market, creating elevated competitors and fewer room for negotiation.”

Graph of the national average 30-year fixed mortgage rate in the U.S

8. Housing stock rose after hitting a report low

10.7 million properties had been listed on the market via November, up 11.2% in comparison with the 9.5 million properties listed via November in 2021. Within the three months ending November 2022, the variety of properties on the market elevated by 15% yr over yr, the most important improve on report. 

As mortgage charges rose alongside inflation, extra patrons determined to remain put, permitting stock to extend. Since December 2019, stock has declined yr over yr till it lastly rose in June 2022.

We’re rapidly working again towards a balanced market, which is three to 6 months of stock,” says Seattle-area Redfin agent Brian Shields. “We’ve been in a vendor’s market with lower than 5 months of stock for a number of years, till halfway via this yr. Consumers now have much more selections than they did final Spring.”


Stock and provide are calculated in rolling 90-day durations, e.g., January 2022 knowledge is the three-month interval from November 1, 2021, via January 31, 2022.

9. Months of provide dropped to a near-record low of simply 1.2 months

Whereas stock measures the variety of properties at present out there on the market, months of provide measures the period of time it might take these properties to promote. 4 to 5 months of housing provide is taken into account the optimum benchmark. Lower than three months of housing provide typically implies that there are extra patrons than sellers, whereas a better quantity means there are extra sellers than patrons. Stock and provide usually transfer collectively. 

Nationwide, months of housing provide dipped to only over 1.2 months in March earlier than slowly rebounding in the summertime. 12 months over yr, months of provide has declined nearly each month since January 2020. 

  • As patrons retreated attributable to excessive inflation and rates of interest, months of provide started to develop in July and August, reaching 2.3 months of provide by September.
  • In Seattle, months of provide reached a near-record low of simply 15.5 days in January and February, the bottom of any main metropolitan space.

“Consumers have extra leverage now than they’ve since 2010,” advises San Francisco Redfin agent Josh Felder. “Even with greater mortgage charges, should you intend to remain put for longer than 5 years, it’s an ideal funding. Properties are forecast to nonetheless admire, even in gentle of present circumstances. Sellers ought to perceive that the market continues to be shifting. Properties don’t promote in 5 days, nicely over checklist value, anymore.”


Stock and provide are calculated in 90-day durations, e.g., January 2022 knowledge is the three-month interval from November 1, 2021, via January 31, 2022.

10. New building took up a rising share of housing stock 

There have been 1.25 million privately-owned new properties constructed within the U.S. via November 2022, up 3% from a yr in the past. As inflation rose and the market slowed, builders started slowing their manufacturing to dump what they already had. 

New building has been taking over a rising portion of general housing provide since 2011, when constructing rebounded after the monetary disaster. This development intensified in 2021 and solely just lately started to decelerate. “Should you’re a purchaser, think about new building properties,” advises Kim Stearns, a Northern Idaho Redfin agent. “Due to a listing buildup, many builders have one to 4 properties they might love to shut on and can typically supply incentives.”  

  • Over 63% of recent builds had been single-family properties, up 2% yr over yr
  • New building begins dropped from their peak of 164,000 in April to 111,000 in November

Knowledge courtesy of Census.gov

11. Residence gross sales fell almost 17% yr over yr 

5.62 million U.S. properties bought via November, down 16.6% yr over yr, a pointy lower from the 6.74 million bought in 2021 throughout the identical interval. Generally, between 4 and 7 million properties promote per yr, with the historic common sitting at just over 5 million. 12 months-over-year residence gross sales decreased in each month of 2022, with October and November posting the sharpest declines. 

  • Simply 376,000 properties bought in November, down 37.4% yr over yr and a seasonally-adjusted historic low (since 2001).
  • June was the busiest month with 626,641 properties bought, a 15.2% year-over-year dip.


Knowledge was collected via November.

12. Median days on market rose at a report tempo, signaling a dramatic turnaround from 2021’s breakneck tempo

In 2022, properties spent a median of simply 24 days available on the market, an 8.4% improve yr over yr in comparison with the 22 days available on the market in 2021. Since 2020, a housing provide crunch has been attributable to provide chain points, a power lack of homebuilding, and a rise in demand. In 2022, time available on the market ticked up as homebuilding started to catch as much as demand and excessive mortgage and inflation charges restricted patrons’ spending energy. 

“Because of a slowing economic system and layoffs within the tech sector close to the tip of the yr, many patrons paused their residence search attributable to affordability and job safety,” notes Frank Vettesse III, a San Francisco Redfin agent. “This was considered one of many components that contributed to the dramatic slowdown in gross sales.”

  • Could was the busiest month of the yr, with properties spending a median of simply 17 days available on the market.
  • Within the 4 weeks ending December 4th, properties spent a median of 37 days available on the market, the slowest month of 2022 and the most important year-over-year slowdown on report.


13. 14% of lively residence listings skilled value drops 

On common, 14% of lively properties on the market had value drops in 2022, up 4.7% yr over yr. In October, 22.6% of listings had value drops, a decades-long excessive. In reality, from February via July, the variety of properties with value drops rose from 5.7% to 19.5%, a record-fast improve. “The shift was dramatic,” says Christy Seashore, a Seattle-area Redfin agent. “The patrons who didn’t safe a house through the top of competitors are actually bidding low. For instance, the identical sort of residence that patrons had been keen to supply $200,000 over checklist value are actually providing $200,000 under checklist value.” 

  • In Denver, 47% of properties skilled reductions in value, the very best share of any main metropolis.
  • Though value drops had been frequent, median sale costs nonetheless elevated in nearly each metro within the county. 
  • Many pandemic-era migration hotspots, comparable to Tampa, Las Vegas, and West Palm Seashore, had a big share of listings with value drops as nicely.

“As sellers with stale listings turned more and more anxious to get their properties bought, we noticed a steep rise in value drops via the summer time right here in Washington State,” says Darlene Haselton, a Tacoma, WA Redfin agent. “At the moment, properties which can be recent available on the market are beginning to transfer extra rapidly. As mortgage charges dip additional, in-demand properties might begin receiving a number of gives.” 

The highest 5 cities with the very best share of value drops in 2022

Knowledge contains the median value drops out of all lively listings in every of the 50 largest metropolitan areas. 

14. 55% of properties had a bidding conflict

55% of properties had bidding wars in 2022, down from 64% in 2021. Coastal metros skilled the very best charges of bidding wars, together with Boston (69.8%) and Los Angeles (67.7%). 

Nonetheless, nationwide, bidding wars fell from 72% to 35% from February to November. A worsening economic system, greater mortgage charges, and a rise in provide contributed to the slowdown.

Shauna Pendleton, a Boise, ID Redfin agent, advises sellers to be affected person and await mortgage charges to drop. “Except a house is priced $100,000 or extra beneath market worth, bidding wars are principally non-existent. Our group nonetheless hears of some multiple-offer conditions; in these instances, it’s usually a luxurious residence in a high-demand neighborhood that’s priced very aggressively.” 

The highest 5 metros with the very best share of bidding wars in 2022

Knowledge contains the median share of bidding wars throughout lively listings in every of the 50 largest metropolitan areas. 

15. Over 30% of properties had been bought with money in 2022

30.7% of properties had been bought with all money, up 2% yr over yr. In October (the newest knowledge out there), 32% of properties had been paid for with all money, up 2% yr over yr and the very best share since 2014

  • Florida was the preferred state for all-cash purchases, particularly Jacksonville and West Palm Seashore.
  • Costly west coast metros, together with Oakland, San Jose, and Seattle, had the bottom share of all-cash purchases.

Knowledge is from a Redfin evaluation of county information throughout 39 of essentially the most populous U.S. metropolitan areas, relationship again via 2011. Knowledge doesn’t embody November or December.

16. Actual property traders bought almost 20% of accessible listings, a brand new report

Vying to capitalize on the housing and rental growth, traders bought 233,701 properties in 2022 via September, a record-breaking 19.1% of all listings. Multifamily residential properties constituted the biggest share of investor market share, with a median of 30% of those properties being bought by traders. 

Pandemic boomtowns turned the biggest investor hotspots, particularly in Solar-Belt metros.


The highest 5 metros with the biggest investor market shares in 2022

Knowledge is analyzed on a quarterly foundation and contains all property sorts until in any other case said. Whole share is the typical of information from January-September. Knowledge doesn’t embody the final quarter of 2022. 

17. Luxurious residence gross sales skilled their greatest year-over-year decline on report

In 2022, there have been 258,733 luxurious properties bought within the U.S., down 27% yr over yr and the most important decline since 2012. Lively listings dropped even additional, falling by 32.7% yr over yr. The median sale value for a luxurious residence was $1,080,000, up 14.8% yr over yr. Costs reached their peak of $1,120,000 through the three months ending Could, a 15.7% year-over-year improve. Nonetheless, value progress, listings, and gross sales slowed considerably as demand cooled later within the yr. 

  • Within the three months ending November thirtieth, luxurious residence gross sales fell by 38.1%, the biggest drop on report. 
  • Luxurious properties spent a median of 32 days available on the market via November, up 28.9% yr over yr
  • Tampa was the quickest rising luxurious market, with costs rising by 32.3% yr over yr
  • Luxurious residence gross sales declined by 47% in San Jose, the most important fall of any main metro

“In Seattle, luxurious listings noticed the biggest reductions in value,” continues Seattle agent Christy Seashore. “Within the present market, most sellers with a value level of $1.5 million or greater want to organize to make their residence stand out among the many competitors. As a rule, sellers are having to barter their value and phrases with patrons.”

Luxurious properties are outlined as the highest 5% of listings in a given market. Values are three month shifting aggregates ending on the date proven, e.g., November 2022 spans September, October, and November 2022. Knowledge doesn’t embody the three months ending December 31. 

Trying ahead

The 2022 housing market was chaotic, however what does Redfin predict for 2023? Learn our 2023 Housing Market Predictions to be taught extra.

All knowledge was compiled by the week ending December 23, 2022. Knowledge is aggregated from January to November and doesn’t embody December until said in any other case. All knowledge is from Redfin, FRED, and/or public information. For questions on metrics, learn our metrics definitions web page.