These 5 Trends Will Dominate Real Estate in 2022. Here’s How to Make Sense of Them

For purchasers, The 2021 Real Estate Market was like to a high-speed rollercoaster ride, complete with twists, turns, and inverted loops. According to real estate analysts, while the roller coaster ride isn’t finished yet (sellers still have the upper hand moving into 2022), the market might lighten up on first-time buyers. In order to assist you navigate purchasing a house in the next year, we’ve identified eight trends that experts anticipate will affect the real estate market. Keeping these trends in mind, real estate professionals and finance specialists provided their best advice for first-time buyers.

From the continuous need for additional living space to first-time buyers purchasing holiday rentals, the following are 5 trends will define the 2022 housing market.

Mental Health Facilities and Amenities Will Be Everywhere

It’s been a rough two years, and that’s just putting it mildly. Spa-inspired bathrooms and meditation rooms will be in high demand by 2022, according to Zillow, as will other creative health ideas. There will be an emphasis on natural light in home offices and other communal areas, according to the website. In addition, indoor plants will be used in the staging of properties.

According to Zillow, a freestanding bathtub may increase the sale price of a property by 2.6%.

Homebuyers, here’s some advice: Do you want to let some light into your new house? According to Cindy Chen, a certified real estate broker in New York City, a south-facing house “typically” provides more natural light. “However, it also depends on when you’ll be in the house the most and how much light you need.” Early morning light is preferable for east-facing residences; afternoons are better for those facing west.

Cluttering the windows will let more natural light into the dwellings, she adds, but exposures are hard to alter. In the event that the natural light is still insufficient, Chen recommends hanging light-reflecting mirrors or solely using sheer window coverings without heavy drapes. As an alternative, if the structure permits modifications, you may simply replace the windows in your home with larger ones.

2. Housing Affordability Will Be A Mixed Bag In The Near Future

In 2021, historically low mortgage rates — often as low as 3% — helped to balance off rising listing prices, which had been on the rise. Both property prices and mortgage rates are expected to rise in the year 2022, according to analysts. The “good news/bad news” cycle will continue, as will revenue.

The figures are as follows: According to, interest rates for 30-year fixed-rate mortgages will remain steady at 3.3 percent in 2022 before rising to 3.6 percent by the year’s conclusion. There will also be a 2.9 percent increase in the price of existing homes in 2022. With an improving economy (according to the normal measures), expects income growth of 3.3% by the year’s conclusion. Is there a ray of hope amid this dark storm?

For homebuyers, Kate Wood, a home and mortgage expert at Nerd Wallet, suggests doing homework to discover lenders that offer a solid combination of cheap interest rates and minimal fees and then apply for mortgage pre-approval from at least three of them.

According to her, “each lender will provide you with a written offer showing you the size of the house loan that you may acquire, an interest rate tailored to you and Investigating and researching interest rates can save you big bucks every year that adds up rapidly.

3. Buyers’ Prospects May Improve, But the Market Remains Overwhelmingly In the Seller’s Favor

Analysts predict that 2022 will be a seller’s market as long as inventories remain tight. However, experts estimate that the market will recover from the lows of 2021, with inventory increasing by an average of 0.3 percent in 2022.

A normal winter month typically sees properties on the market for between 85 and 100 days, according to Housing Wire. At this time, homes are on the market for a median of 49 days. The figures are as follows: This is an excellent approach to understanding the current market conditions.

Is there anything more I should know? Homebuyers are advised to have some wiggle space in their budget so that if necessary, they may go beyond the asking price for a property they truly adore. As a real estate agent, Marilyn Emery advises, “Look at properties that have been on the market for more than 21 days.” She represents RLAH Real Estate in Maryland and the District of Columbia. These properties were initially pricey, but they’ve now been reduced in price. Buyers often think there must be something wrong with these homes, so they don’t even bother to go and see them. However, if you take the time to search, you’ll find numerous hidden treasures.

4. Before Primary Dwellings, First-Time Purchasers Acquire “Second Homes.”

As a wildcard trend, Zillow forecasts that market-savvy Gen Z and Millennial buyers would be interested in acquiring what is typically called “second houses” before investing in a primary dwelling. What’s the reason? As a result of remote employment, many members of these generations are no longer linked to large cities and are seeking more cheap places to reside. Nonetheless, this group of first-time purchasers may not be prepared to relocate permanently. Possession of a part-time vacation house or investment property might assist them in accumulating equity in the meantime.

According to Zillow’s 2021 reshuffling report, the average long-distance mover relocated to a ZIP code with property prices about $27,000 lower than where they came from the previous year.

If you purchase a rental property before buying a permanent house and seek financing, you’ll likely be required to make a substantial down payment. According to Jerimiah Taylor, licensed broker and vice president of real estate and mortgage services at real estate technology business OJO Labs, most investment properties demand 20 to 25 percent down compared to the 3.5 percent down that a first-time purchaser may qualify for through the FHA.

5. In Some Areas, Purchasing A Starter Home May Be Cheaper Than Renting

It’s a bit of a catch-22: Since home prices are so high, there’s a greater desire to rent while prospective purchasers wait for the market to drop. reports that the growing demand for rental apartments (particularly those with ample square footage) is driving up rents across the nation.

In 24 of the 50 largest metro regions, buying a “starter” house is more inexpensive than renting. says the monthly cost of purchasing a home was 15.5 percent ($216) less than renting in these markets. Birmingham, Alabama, St. Louis, Missouri, Pittsburgh, Pennsylvania, Orlando, Florida, and Cleveland, Ohio are among the markets where buying appears to be less expensive than renting. In tech centers such as Austin, Texas, San Jose, California, and San Francisco, California, renting is still less costly than purchasing.


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