The sky-high real estate prices and fierce competition that we observed in 2021 are finally cooling off. But there’s a catch –not all markets are following the same trend.

Due to the pandemic, people are moving away from popular housing markets towards secondary or tertiary housing markets. The virus has brought about widespread remote work for a significant portion of the working population, and some are even embracing a nomadic lifestyle. Some of these emerging markets are hot, giving you an incredible investment opportunity.

PricewaterhouseCoopers’ Emerging Trends in Real Estate 2022 states that big cities like Los Angeles, Washington, D.C., and San Francisco are losing to smaller metros. The report notes that the work from home phenomenon has upended people’s housing choices. As a result, many are moving to less crowded locations with lots of outdoor activities.

According to Realtor.com‘s top 2022 markets analysis, cities in the Mountain West and Midwest regions are emerging as hot real estate markets. Let’s take a look at where you should consider investing.

Here’s a list of top real estate investor markets in 2022:

1. Salt Lake City, Utah

A tech hub in the making, Salt Lake City is home to giants like Facebook, Adobe and Electronic Arts. The city’s startup scene has earned it the nickname ‘Silicon Slopes.’

Buyers from large cities are attracted to the area’s natural beauty and numerous recreational activities. Home prices are already spiking, and the influx of jobs and people expected in 2022 could push prices further. With a median listing price of $499,900, it pays to plan your investments for Salt Lake City now. 

• Boise, Idaho

Boise, an emerging industry center, hosts HP Inc., Micron Technology, and other established corporations. The city boasts numerous snow sports, hiking, rafting opportunities, a diverse food and art scene, and large houses, making it an attractive investment option. According to realtor.com, the median listing price in Boise is $529,900.

As Boise heats up, expect stiff competition in 2022.

• Phoenix, Arizona

By the end of 2021, Phoenix has shown an impressive economic recovery with regard to regained jobs. It has now become an attractive real estate market.

Home to many Fortune 500 companies, Phoenix is witnessing raging bidding wars. The median home price in Phoenix was $386,883 as of November 2021. This reflected a whopping 31.9% increase over 2020 prices.

Going by the numbers, Phoenix is one of the top markets to invest in 2022.

• Providence, Rhode Island

With a median home price of $419,813 and an anticipated price growth of 9.6%, the real estate market in the college town of Providence is worth your attention.

People are moving out of expensive cities like Boston to smaller metros such as Providence, both for the lower prices and an improved quality of life. Be it the restaurants, the nightlife, or the year-long cultural events, Providence is an attractive destination.

With Providence’s burgeoning market, those who invest here stand to fetch excellent ROI.

• Nashville, Tennessee

Shine those cowboy boots! Home to country music and one of the nation’s hottest real estate markets, Nashville is one to have on your radar. Residences in the city are selling in under ten days on average. The city’s diverse economic activities and white-collar employment is a crowd puller. Adding fuel to the already hot market are out-of-state investments.

The competition has pushed the median home prices to $395,000, up 12.9% from 2020. With its booming economy, Nashville’s real estate market may be the best bet for real estate investors in 2022.

It’s good to be cautious!

Don’t write a check just yet. Though the prospect of high returns may lure you to these cities, as always, you should be cautious when considering any long-term investments. Frenzied markets can influence our thinking in ways that aren’t entirely rational, so going into your next real estate investment requires a level head and solid footing. To find lasting investment success in 2022 (and beyond), start by thoroughly analyzing the local market and building a reliable real estate team.