WRE NEWS
Today’s housing market is worth a record $55.1 trillion, according to new data from Zillow (NASDAQ: Z, ZG). This marked an $862 billion surge in the past year and $20 trillion increase since 2020.
Seven states saw their housing markets lose value over the past year, with the biggest drops in Florida (-$109 billion), California (-$106 billion) and Texas (-$32 billion). About one-quarter of the nationwide gains came from New York, which alone added $216 billion.
At a metro level, there are nine metro areas with housing markets worth more than $1 trillion – these markets collectively hold nearly one-third of the nation’s housing wealth (31.9%). They are New York ($4.6 trillion), Los Angeles ($3.9 trillion), San Francisco ($1.9 trillion), Boston ($1.3 trillion), Washington, D.C. ($1.3 trillion), Miami ($1.2 trillion), Chicago ($1.2 trillion), Seattle ($1.1 trillion) and San Diego ($1 trillion).
Zillow added that new construction has added $2.5 trillion in housing value since early 2020 — about 12.5% of the nation’s total gain. Utah (23%), Texas (22%), Idaho (22%), and Florida (20%) saw the biggest share of housing market gains come from new construction over this period.
“Even as buyers struggled with rising costs, US housing wealth kept climbing,” said Orphe Divounguy, senior economist at Zillow. “New construction opened the door for many first-time homeowners, creating trillions in wealth that didn’t exist five years ago. Home value gains are a windfall for longtime homeowners, but they also highlight how housing deficits that sent prices soaring left behind many aspiring first-time buyers. The bottom line is that we need more homes to solve our chronic affordability crisis.”