Continued demand for suburban housing. 2020 and 2021 saw many people opting out of city life for more space and privacy in the suburbs—a trend the team at realtor.com expect will continue into 2022.
Challenges for first-time homebuyers. In 2021, low inventory and high prices have made it hard for many first-time homebuyers to get into the market. And while available inventory is expected to increase in 2022, prices are expected to stay high—and, when paired with rising mortgage rates, it may present challenges for many potential buyers hoping to purchase a home for the first time.
A rise in demand for smaller homes. While many buyers want to buy large homes, affordability challenges may make some of those buyers rethink their strategy in 2022, increasing the demand for smaller homes—particularly for first-time buyers.