2022 Housing Market 12 months In Overview

17 housing traits that outlined the yr, together with report house 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 individuals purchased properties. The median U.S. house value hit a report excessive earlier than falling barely. Rising rents stretched renters’ budgets. Excessive inflation put elevated strain on virtually everybody. For the primary time in historical past, mortgage charges doubled within the span of only one yr. The checklist goes on

Normally, 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 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 Might, the standard house bought 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 most important proportion improve during the last 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 way of 2022. In April and Might, mortgage charges rose to fight rising inflation, which started reversing housing traits 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 most costly 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, slightly below 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 costliest metros had been in California.
  • Many Florida metros skilled the most important year-over-year value development, together with Tampa (18%), Orlando (14.9%), Jacksonville (14.7%), and Miami (14.2%).
  • Tampa had the most important year-over-year value development of all giant metros within the nation. 

The highest ten costliest 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 consists of the yearly aggregated median sale costs out of all properties bought in every of the 50 largest metropolitan areas. Knowledge doesn’t keep 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 per week in June, making it the most costly month of the yr however nonetheless practically 50% decrease than the nationwide median. Normally, 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 positioned 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 consists of the yearly aggregated median sale costs out of all properties bought in every of the 50 largest metropolitan areas. Knowledge doesn’t keep in mind 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% greater 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% improve 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 most costly 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 earnings on hire from 2017-2021.

There are at the moment over 1.1 million rental items underneath building within the U.S., which is able to come out there for hire over the subsequent yr, serving to to alleviate a part of the housing scarcity.

“We count on rents to fall in practically 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 most effective deal in the course of 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 endurance for 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 costliest 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


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

5. Homebuyers trying to relocate favored Solar-Belt cities

24.1% of homebuyers regarded to maneuver to a distinct metro in the course of 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 checklist.
  • 100% of properties in lots of widespread relocation metros skilled extreme drought previously yr, together with Phoenix, Las Vegas, and Sacramento.

“Much like 2021, continued development in distant work and a need for housing affordability drove relocation patterns in 2022,” Marr continues. “Nonetheless, traits 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 recognition in 2022.”

Knowledge is the p.c of Redfin.com customers trying to find properties exterior their metro. Knowledge is the yr median mixture of a number of three month transferring aggregates and doesn’t embrace September-December. Sustain with the most recent 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 proportion since August 1982 and greater than double the speed from November 2021. In actual fact, inflation charges have doubled in comparison with the earlier yr in each month since June. Rising costs severely restricted client spending and slowed practically 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 induced 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 bounce in home costs, which is a key contributor to inflation.

Knowledge courtesy of FRED. Knowledge measures core CPI (much less meals and vitality) by way 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, greater than any level since 2002. In actual fact, 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 a detailed, optimistic inflation information helped scale back housing rates of interest to under 7%.

  • In widespread migration metros like Phoenix, Las Vegas, and Austin, greater mortgage charges and costly house costs damage consumers probably the most.
  • In Phoenix, for instance, as mortgage charges climbed in Might and June, solely 21.5% of properties had been reasonably priced to consumers with a $2,500 month-to-month mortgage finances – a 28.5% drop from 2021.

Excessive inflation and rising mortgage charges typically deter consumers, however for those who’re in a position to afford it, possession often is the higher choice. “Homeownership is a long-term funding that may result in vital web price beneficial properties, 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, that means extra house 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 properties had been listed on the market by way of November, up 11.2% in comparison with the 9.5 million properties listed by way of 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 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 greater mortgage charges, for those who intend to remain put for longer than 5 years, it’s an awesome funding. Houses are forecast to nonetheless recognize, even in gentle of present circumstances. Sellers ought to perceive that the market remains to be transferring. Houses don’t promote in 5 days, effectively over checklist value, anymore.”


Stock and provide are calculated in rolling 90-day intervals, e.g., January 2022 information is the three-month interval from November 1, 2021, by way 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 properties at the moment 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 consumers than sellers, whereas a better quantity means there are extra sellers than consumers. Stock and provide usually 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 virtually each month since January 2020. 

  • As consumers retreated on account 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 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 by way of this yr. Patrons now have much more selections than they did final Spring.”


Stock and provide are calculated in 90-day intervals, e.g., January 2022 information is the three-month interval from November 1, 2021, by way of 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. by way 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 building has been taking over a rising portion of total housing provide since 2011, when constructing rebounded after the monetary disaster. This development intensified in 2021 and solely just lately started to decelerate. “In case you’re a purchaser, contemplate new building properties,” advises Kim Stearns, a Northern Idaho Redfin agent. “Due to a list buildup, many builders have one to 4 properties they’d love to shut on and can typically supply incentives.”  

  • Over 63% of latest 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 practically 17% yr over yr 

5.62 million U.S. properties bought by way of November, down 16.6% yr over yr, a pointy lower from the 6.74 million bought in 2021 throughout the identical interval. Normally, between 4 and 7 million properties promote per yr, with the historic common sitting at just over 5 million. 12 months-over-year house 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 by way of 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 brought on by provide chain points, a continual 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 consumers’ spending energy. 

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

  • Might 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 house 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 actual fact, from February by way of 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 Seaside, a Seattle-area Redfin agent. “The consumers who didn’t safe a house in the course of the top of competitors at the moment are bidding low. For instance, the identical kind of house that consumers had been prepared to supply $200,000 over checklist value at the moment are providing $200,000 under checklist value.” 

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

“As sellers with stale listings turned more and more anxious to get their properties bought, we noticed a steep rise in value drops by way of 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 could begin receiving a number of gives.” 

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

Knowledge consists of 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 financial 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 anticipate mortgage charges to drop. “Until a house is priced $100,000 or extra underneath market worth, bidding wars are largely non-existent. Our crew nonetheless hears of some multiple-offer conditions; in these circumstances, it’s usually a luxurious house in a high-demand neighborhood that’s priced very aggressively.” 

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

Knowledge consists of the median proportion 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 information 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 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.

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

16. Actual property buyers bought practically 20% of obtainable listings, a brand new report

Vying to capitalize on the housing and rental increase, buyers bought 233,701 properties in 2022 by way of September, a record-breaking 19.1% of all listings. Multifamily residential properties constituted the most important proportion of investor market share, with a median of 30% of those properties being bought by buyers. 

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


The highest 5 metros with the most important investor market shares in 2022

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

17. Luxurious house 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 house was $1,080,000, up 14.8% yr over yr. Costs reached their peak of $1,120,000 in the course of the three months ending Might, a 15.7% year-over-year improve. Nonetheless, value development, listings, and gross sales slowed considerably as demand cooled later within the yr. 

  • Within the three months ending November thirtieth, luxurious house gross sales fell by 38.1%, the most important drop on report. 
  • Luxurious properties spent a median of 32 days available on the market by way 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 house gross sales declined by 47% in San Jose, the most important fall of any main metro

“In Seattle, luxurious listings noticed the most important reductions in value,” continues Seattle agent Christy Seaside. “Within the present market, most sellers with a value level of $1.5 million or greater want to arrange to make their house stand out among the many competitors. Most of the time, sellers are having to barter their value and phrases with consumers.”

Luxurious properties 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. Knowledge 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 study extra.

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