2022 Housing Market 12 months In Evaluate

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

The 2022 housing market was nothing in need of outstanding. The pandemic and ensuing distant work continued to outline how, when, and the place folks purchased houses. 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 listing goes on

On the whole, 2022 was a response to the dramatic actual property increase in 2021. The yr began with a surge in costs and development 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 modifications in hire costs, home costs, and rates of interest both falling or slowing down. 

Beneath is a non-exhaustive listing of knowledge factors and visuals that outlined the 2022 housing market. 

Table of Contents

1. Residence costs rose to an all-time excessive

In Could, the standard residence offered for $430,365, a report excessive since data 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 enhance over the past 5 years. Following the pandemic, demand skyrocketed whereas provide remained traditionally low, inflicting a extreme housing scarcity and value increase that continued all through 2021 and peaked halfway by means of 2022. In April and Could, mortgage charges rose to fight rising inflation, which started reversing housing tendencies from earlier within the yr. 

Regardless of a shortly cooling housing market, costs are nonetheless increased as we speak 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 doubtless 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 development, together with Tampa (18%), Orlando (14.9%), Jacksonville (14.7%), and Miami (14.2%).
  • Tampa had the biggest year-over-year value development 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



Information contains the yearly aggregated median sale costs out of all houses offered in every of the 50 largest metropolitan areas. Information doesn’t take into consideration 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 per week in June, making it the costliest month of the yr however nonetheless almost 50% decrease than the nationwide median. On the whole, year-over-year value will increase in 2022 had been smaller throughout most main metros than in 2021, and development 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 listing.

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



Information contains the yearly aggregated median sale costs out of all houses offered in every of the 50 largest metropolitan areas. Information doesn’t take into consideration native median incomes and residential affordability. 

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

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

  • Median hire 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 hire will increase, together with Oklahoma Metropolis (23.3%), Cincinnati (17.6%), and Pittsburgh (14.8%).
  • Oklahoma Metropolis skilled the very best year-over-year hire will increase within the nation.  
  • Lease development has persistently 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 hire from 2017-2021.

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

“We anticipate 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 sometimes get one of the best deal throughout the winter months as demand is decrease, rents are persevering with to ease. Due to this, there received’t be as a lot of a seasonal enhance come spring, and thus endurance for a great deal will repay. And don’t be afraid to barter; some landlords could also be open to concessions like a free month’s hire or free parking.”


The highest ten most costly cities for renters in 2022

Median hire 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 hire 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


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

5. Homebuyers seeking to relocate favored Solar-Belt cities

24.1% of homebuyers regarded to maneuver to a unique metro throughout 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 regarded to maneuver to sunny, comparatively reasonably priced areas, with Miami, Tampa, Las Vegas, and Phoenix being the most well-liked locations.
  • Homebuyers regarded to maneuver away from costly coastal metros like San Francisco, Los Angeles, and New York, which topped the listing.
  • 100% of houses in lots of standard relocation metros skilled extreme drought prior to now yr, together with Phoenix, Las Vegas, and Sacramento.

“Much like 2021, continued development in distant work and a want for housing affordability drove relocation patterns in 2022,” Marr continues. “Nevertheless, tendencies in some standard locations reversed course after they turned too standard, aggressive, and costly. Cities like Salt Lake Metropolis, Phoenix, Tucson, Dallas, and San Antonio all declined in reputation in 2022.”

Information is the % of Redfin.com customers looking for houses outdoors their metro. Information is the yr median combination of a number of three month transferring aggregates and doesn’t embrace September-December. Sustain with the newest migration information right here

6. Inflation rose at a report tempo, affecting each aspect 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. The truth is, inflation charges have doubled in comparison with the earlier yr in each month since June. Rising costs severely restricted shopper spending and slowed almost each aspect 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, holding homebuyers out of the housing market.
    • Inflation rose the quickest in pandemic boomtowns due partly to the sudden leap in home costs, which is a key contributor to inflation.

Information courtesy of FRED. Information measures core CPI (much less meals and power) by means of 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, increased than any level since 2002. The truth is, 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 scale back housing rates of interest to under 7%.

  • In standard migration metros like Phoenix, Las Vegas, and Austin, increased mortgage charges and costly residence costs harm consumers probably the most.
  • In Phoenix, for instance, as mortgage charges climbed in Could and June, solely 21.5% of houses had been reasonably priced to consumers with a $2,500 month-to-month mortgage funds – a 28.5% drop from 2021.

Excessive inflation and rising mortgage charges typically deter consumers, however when you’re capable of afford it, possession will be the higher choice. “Homeownership is a long-term funding that may result in vital web value features, even with charges above 6%,” advises Dean Hayes, Space Gross sales Supervisor with Bay Equity, a Redfin firm. “Mortgage charges will doubtless go down within the new yr, which means extra residence consumers 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 houses had been listed on the market by means of November, up 11.2% in comparison with the 9.5 million houses listed by means of November in 2021. Within the three months ending November 2022, the variety of houses on the market elevated by 15% yr over yr, the most important enhance on report. 

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

“Patrons have extra leverage now than they’ve since 2010,” advises San Francisco Redfin agent Josh Felder. “Even with increased mortgage charges, when you intend to remain put for longer than 5 years, it’s an excellent funding. Houses are forecast to nonetheless respect, even in gentle of present circumstances. Sellers ought to perceive that the market continues to be transferring. Houses don’t promote in 5 days, nicely over listing value, anymore.”


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

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

Whereas stock measures the variety of houses at present out there on the market, months of provide measures the period of time it could take these houses 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 consumers than sellers, whereas a better quantity means there are extra sellers than consumers. Stock and provide sometimes transfer collectively. 

Nationwide, months of housing provide dipped to simply 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 consumers retreated as a result of 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.

We’re shortly 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 by means of this yr. Patrons now have much more selections than they did final Spring.”


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

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

There have been 1.25 million privately-owned new houses constructed within the U.S. by means of 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 development has been taking on a rising portion of general housing provide since 2011, when constructing rebounded after the monetary disaster. This development intensified in 2021 and solely not too long ago started to decelerate. “If you happen to’re a purchaser, contemplate new development houses,” advises Kim Stearns, a Northern Idaho Redfin agent. “Due to a list buildup, many builders have one to 4 houses they’d love to shut on and can typically supply incentives.”  

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

Information courtesy of Census.gov

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

5.62 million U.S. houses offered by means of November, down 16.6% yr over yr, a pointy lower from the 6.74 million offered in 2021 throughout the identical interval. On the whole, between 4 and 7 million houses 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 houses offered in November, down 37.4% yr over yr and a seasonally-adjusted historic low (since 2001).
  • June was the busiest month with 626,641 houses offered, a 15.2% year-over-year dip.


Information was collected by means of November.

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

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

“On account of a slowing financial system and layoffs within the tech sector close to the tip of the yr, many consumers paused their residence search as a result of affordability and job safety,” notes Frank Vettesse III, a San Francisco Redfin agent. “This was one among many elements that contributed to the dramatic slowdown in gross sales.”

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


13. 14% of energetic residence listings skilled value drops 

On common, 14% of energetic houses 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. The truth is, from February by means of July, the variety of houses with value drops rose from 5.7% to 19.5%, a record-fast enhance. “The shift was dramatic,” says Christy Seaside, a Seattle-area Redfin agent. “The consumers who didn’t safe a house throughout the peak of competitors are actually bidding low. For instance, the identical kind of residence that consumers had been prepared to supply $200,000 over listing value are actually providing $200,000 under listing value.” 

  • In Denver, 47% of houses skilled reductions in value, the very best share of any main metropolis.
  • Despite the fact that value drops had been frequent, median sale costs nonetheless elevated in nearly each metro within the county. 
  • Many pandemic-era migration hotspots, reminiscent of Tampa, Las Vegas, and West Palm Seaside, 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 offered, we noticed a steep rise in value drops by means of the summer time right here in Washington State,” says Darlene Haselton, a Tacoma, WA Redfin agent. “At the moment, houses which can be contemporary in the marketplace are beginning to transfer extra shortly. As mortgage charges dip additional, in-demand properties could begin receiving a number of affords.” 

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

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

14. 55% of houses had a bidding battle

55% of houses 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%). 

Nevertheless, nationwide, bidding wars fell from 72% to 35% from February to November. A worsening financial system, increased 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 anticipate mortgage charges to drop. “Until a house is priced $100,000 or extra underneath market worth, bidding wars are largely non-existent. Our group nonetheless hears of some multiple-offer conditions; in these instances, it’s sometimes 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

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

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

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

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

Information is from a Redfin evaluation of county data throughout 39 of probably the most populous U.S. metropolitan areas, relationship again by means of 2011. Information doesn’t embrace November or December.

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

Vying to capitalize on the housing and rental increase, buyers bought 233,701 houses in 2022 by means of 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 buyers. 

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


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

Information is analyzed on a quarterly foundation and contains all property varieties except in any other case acknowledged. Whole share is the common of knowledge from January-September. Information doesn’t embrace the final quarter of 2022. 

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

In 2022, there have been 258,733 luxurious houses offered 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 throughout the three months ending Could, a 15.7% year-over-year enhance. Nevertheless, value development, 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 houses spent a median of 32 days in the marketplace by means of 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 Seaside. “Within the present market, most sellers with a value level of $1.5 million or increased 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 consumers.”

Luxurious houses are outlined as the highest 5% of listings in a given market. Values are three month transferring aggregates ending on the date proven, e.g., November 2022 spans September, October, and November 2022. Information doesn’t embrace 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. Information is aggregated from January to November and doesn’t embrace December except acknowledged in any other case. All knowledge is from Redfin, FRED, and/or public data. For questions on metrics, learn our metrics definitions web page.