NEW YORK and SANTA CLARA, Calif., Oct. 25, 2022 (GLOBE NEWSWIRE) -- The Wall Street Journal and Realtor.com® today released the WSJ/Realtor.com® Fall 2022 Emerging Housing Markets Index, which revealed Johnson City, Tenn., is now the No. 1 emerging market in America. The index analyzes key housing market data, as well as economic vitality and lifestyle metrics, to surface emerging housing markets that offer a high quality of life and are expected to see future home price appreciation.
The Top 20 Emerging Markets for Fall 2022 are:
- Johnson City, Tenn.
- Visalia-Porterville, Calif.
- Elkhart-Goshen, Ind.
- North Port-Sarasota-Bradenton, Fla.
- Fort Wayne, Ind.
- Lafayette-West Lafayette, Ind.
- Columbia, S.C.
- Columbia, Mo.
- Raleigh, N.C.
- Yuma, Ariz.
- Tampa-St. Petersburg-Clearwater, Fla.
- Cape Coral-Fort Myers, Fla.
- Nashville-Davidson-Murfreesboro-Franklin, Tenn.
- Colorado Springs, Colo.
- Burlington, N.C.
- Naples-Immokalee-Marco Island, Fla.
- Fayetteville-Springdale-Rogers, Ariz.-Mo.
- Orlando-Kissimmee-Sanford, Fla.
- Topeka, Kan.
- Columbus, Ohio
Key Trends Among the Fall 2022 Top 20 Emerging Housing Markets:
Amid Broad Cooling, Housing Activity Remains Robust
Home prices continue to increase nationwide, with the median listing price continuing to grow by double-digits. Among the fall index’s top 20 markets, only Colorado Springs, Colo., and Raleigh, N.C., saw single-digit price growth.
Top Areas Attract Outsiders Who Boost Real Estate Demand
The 20 local markets at the top of the list saw 69.5% of homebuyers viewing home listings come from another market, an increase of 7.5 percentage points compared to the year prior.
Strong Local Economies are Preferred
Amid an inflationary environment, the latest index indicates low-cost areas are preferred. The majority of top 20 markets have vibrant local economies and unemployment rates below the 3.6% national average. The cost of living in 18 of the top 20 markets registered below the national average, with Johnson City, Tenn., Yuma, Ariz., and Topeka, Kan., offering residents at least a 10% savings.
Johnson City, Tenn., attracts workers, families and retirees due to its favorable economy, housing conditions and quality of life. This in-demand market saw more than 80% of home shoppers come from outside the area, and offers buyers affordability, with listing prices well below the national median. Its proximity to the Appalachian Trail, lakes and rivers makes Johnson City an adventure destination, as well.
The fall index saw nine repeat markets among the top 20 including the new number one market, Johnson City, Tenn. Markets which consistently appear in previous indexes include Raleigh, N.C.; Burlington, N.C.; North Port-Sarasota-Bradenton, Fla. and other small-to-mid-sized cities offering affordable housing and low costs of living.
Markets Falling Out of the Top 20
As economic conditions worsen and mortgage rates continue to rise, more expensive markets including Rapid City, S.D., Eureka-Arcata-Fortuna, Calif., and Durham-Chapel Hill, N.C., have fallen out of favor.
The ranking evaluates the 300 most populous core-based statistical areas, as measured by the U.S. Census Bureau, and defined by March 2020 delineation standards for eight indicators across two broad categories: real estate market (50%) and economic health and quality of life (50%). Each market is ranked on a scale of 0 to 100 according to the category indicators, and the overall index is based on the weighted sum of these rankings. The real estate market category indicators are: real estate demand (weighted: 16.6%), based on the Sept. 2022 12-months average of pageviews per property; real estate supply (weighted: 16.6%), based on the Sept. 2022 12-months average of median days on market for real estate listings, median listing price trend (weighted:16.6%) based on the Sept. 2022 12-months average . The economic and quality of life category indicators are: unemployment (weighted: 6.25%) Aug. 2022 data); wages (weighted: 6.251%) 1st quarter 2022 data; regional price parities (weighted: 6.25%) 2020 data; the share of foreign born (weighted: 6.25%) 2020 data; small businesses (weighted: 6.25%) Sept. 2021 to Sept. 2022 data; amenities (weighted: 6.25%) 2020 data, measured as per capita “everyday splurge” stores in an area; commute (weighted: 6.25%) 2020 data; and estimated effective real estate taxes (weighted: 6.25%) 2020 data.
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For The Wall Street Journal
Lexie Puckett Holbert