Many organizations are publishing forecasts this time of the year. I review most of them so I can help my clients make smart decisions when they buy or sell next year.

Here’s a summary of the most important trends that will impact the housing market in 2022…

Housing Trends Show Americans Poised for a Whirlwind Year

The experts at predict another year when demand will outstrip supply. The inventory will remain low as more millennial buyers enter the market. They will face fierce competition for affordable homes, as both values and interest rates will rise in 2022.

Highlights from the forecast:

  • Home sales will hit a 15-year high
  • Home prices will advance at a moderate pace, but continue to set records
  • The for-sale inventory will begin to turn around
  • Rent increases will outpace home value appreciation
  • Buyers will prefer to move to the suburbs
  • First-time home buyers will face an uphill battle

In Columbus, closed sales are projected to increase by 13.7% year over year. Home values will rise by “only” 6.3% as compared to 12.9% in 2021.

This makes Columbus the 5th Hottest Housing Market of 2022.

To read’s complete housing forecast for 2022 click here.

Builders Keep Playing Catch-Up

New home construction has been lagging behind since the Great Recession. Zillow estimates that there is a shortage of approximately 1.3 million homes due to underdevelopment over the past 10 years.

Builders have made considerable gains in 2021, but they still have a long way to go to recover.

The inventory crisis will continue for a few more years due to population growth and a decrease in household size.

Some markets are affected more than others. The chart below shows the shortage of new construction permits in major metro areas.

While Dallas is short 155,000 permits, Chicago has a surplus of 60,000. Like most fast-growing cities Columbus is around 40,000 permits short.

New Construction Listings Not Move-In Ready

Commercial real estate broker Marcus & Millichap sheds light on the readiness of new construction listings.

While the number of new homes listed for sale soared to new records in October 2021, only 10% of these homes were ready to move-in when they were listed. And, only 25% were fully built and move-in ready at closing.

Most buyers prefer move-in ready homes. The inability of builders to shorten construction timelines is limiting their ability to sell more homes.

How to Get Answers to Your Real Estate Questions

Finally, I want to make sure I address all your home buying and selling questions in my newsletter.

If you would like me to cover a certain topic in a future newsletter, please reply to me and let me know!

Go ahead – tell me what you need help with! Drop a comment or Call/Text me at (614) 975-9650!