Las Vegas, Miami, Tampa: 3 Housing Markets With Major Price Gains in 2022

Home buyers in the Las Vegas, Miami and Tampa real estate markets should be prepared for stiff competition in 2022. These hot housing markets have experienced significant inventory declines, at a time when demand from buyers is soaring.

As a result, they are currently seeing some of the biggest list-price increases among the nation’s major metro areas. That’s based on new data published earlier this month.

Sellers Are Setting Higher List Prices in 2022

In early March, researchers from Realtor.com published a housing market update with data for the nation as a whole and the 50 largest metropolitan areas. Among other things, this report showed where real estate listing prices have increased the most over the past year or so.

As it turns out, the metro area housing markets of Las Vegas, Miami and Tampa had the biggest gains in terms of list prices. All three metros far exceeded the average growth rate for the U.S.

According to Realtor.com, the median list price for the nation as a whole rose 12.9% in February 2022, compared to a year earlier.

But as we know, real estate conditions can vary widely from one city or metro area to another. Some housing markets have experienced much greater price growth over the past year, when compared to the national average. Las Vegas, Miami and Tampa top the list.

Major Price Growth in Las Vegas, Miami and Tampa

From February 2021 to February 2022, the real estate markets of Las Vegas, Miami and Tampa all had list-price increases of more than 30%. Clearly, sellers are feeling pretty confident in these hot housing markets. And rightfully so. An imbalanced supply-and-demand situation has put sellers into the driver’s seat.

Here are the year-over-year list price increases for those three metro areas:

  • Las Vegas-Henderson-Paradise, Nevada: +39.6%
  • Miami-Fort Lauderdale-West Palm Beach, Florida: +31.6%
  • Tampa-St. Petersberg-Clearwater, Florida: +31.5%

The Austin, Texas housing market also experienced a significant increase in list prices over the past year. The typical listing price in the Austin-Round Rock metro area rose by 31% over the past year or so.

It bears repeating. The median list price for the nation as a whole rose by 12.9% during this 12-month period. That means the real estate markets mentioned above more than doubled the national average, when it comes to price growth. Las Vegas more than tripled it.

Inventory Crunch Creates Hot Housing Markets in 2022

Real estate listing prices have risen in most cities across the country, over the past year. The three housing markets shown above just happened to be the extreme examples.

And in most cases, the situation is the same. Tight supply conditions combined with strong demand have put steady (and often significant) upward pressure on home prices.

So it’s not surprising to see that inventory is down sharply in real estate markets like Las Vegas, Miami and Tampa. In fact, these three housing markets have seen a major decline in active property listings over the past year or so.

According to the March 2022 Realtor.com report, the total number of active listings dropped by -31.4% in Las Vegas. The Tampa real estate market saw a -39.2% decline in active listings. And Miami, Florida experienced a whopping -56% drop in listings (the second-biggest decline among the nation’s 50 largest metros).

Danielle Hale, the chief economist for Realtor.com, said in the report that “the number of homes on the market remains woefully behind buyer demand…”

A Big Heads-up for Home Buyers

Anyone planning to buy a home in Las Vegas, Miami or Tampa during 2022 should be prepared for a footrace. These happen to be some of the most competitive housing markets in the country, as we approach the spring home-buying season.

The same is true for many cities across the country, for that matter. A lopsided supply-and-demand situation has forced home buyers to compete fiercely with one another, often making offers above the original list price.

While real estate competition remains stiff in most cities across the nation, things are even more competitive within hot housing markets like Las Vegas, Miami and Tampa. By some estimates, Tampa could be one of the hottest real estate scenes of 2022. Other Florida cities are also seeing high levels of competition among buyers and investors.

Some forecasters have predicted a cooling trend for 2022, at least in terms of home-price growth. But it’s a pretty safe bet that the three real estate markets mentioned above will continue to see above-average price growth through this year and into 2023.