These are the 10 most undervalued housing markets in the U.S.

Of the 379 metro areas in the U.S., the National Association of Realtors (NAR) has identified 10 that remain undervalued. These “hidden gems,” as the agency calls them, have relatively affordable homes given the market fundamentals and are expected to see stronger price appreciation in 2022 than the rest of the country, which seems poised to slow down.

And every one of them is located in the southern half of the country.

Texas hosts the most of these undervalued markets, with Florida coming in second. The northernmost area on the list lies along the Arkansas-Missouri border.

To qualify as a hidden gem, the median home price to median family income ratio must be at the low end of the ranked metro areas, while the market as a whole must be in the top half of metropolitan cities in seven categories: wage growth, job growth, ratio of the change in population to the sum of housing permits, population growth, net domestic migration, percentage of the population ages 25 to 44, and the percentage of households with broadband service.

“The housing sector performed spectacularly in 2021 in many markets, with huge gains achieved in places like Austin, Boise, and Naples,” said Lawrence Yun, NAR chief economist and senior vice president of research in a statement. “Several markets did reasonably well in 2021, but not as strong as the underlying fundamentals suggested. Therefore, in 2022, these ‘hidden gem’ markets have more room for growth.”

Here’s a look at the 10 most undervalued markets as we go into 2022, in alphabetical order (NAR’s chosen ranking technique):

• Dallas–Fort Worth, Texas
• Daphne-Fairhope-Farley, Ala.
• Fayetteville-Springdale-Rogers, Ark.-Mo.
• Huntsville, Ala.
• Knoxville, Tenn.
• Palm Bay–Melbourne–Titusville, Fla.
• Pensacola–Ferry Pass–Brent, Fla.
• San Antonio–New Braunfels, Texas
• Spartanburg, S.C.
• Tucson, Ariz.