New home construction has been the catalyst
for housing market growth
- The total value of the U.S. housing market is 49% higher than
before the start of the pandemic in February 2020.
- Among metropolitan areas, New
York, Los Angeles,
San Francisco, Boston and Miami are the most valuable housing
markets.
- Florida now boasts the
second-most-valuable real estate in the nation, surpassing
New York. California retains the top spot.
SEATTLE, Sept. 26,
2023 /PRNewswire/ -- The U.S. housing market has
rebounded impressively in 2023 after a short-lived downturn late
last year. The total value of the U.S. housing market has surged by
more than $2.6 trillion over the past
year, a new Zillow® analysis shows.
The total value of the U.S. housing market — the sum of Zillow's
estimated value for every U.S. home — is now slightly less than
$52 trillion, which is $1.1 trillion higher than the previous peak
reached last June. While a small chunk of this growth can be
attributed to a 0.7% rise in the average value of a U.S. home
during this period, the powerhouse behind this surge has been new
construction.
"A steady flow of new homes hit the market this spring and
summer, helping chip away at the deep inventory deficit and
boosting the total value of the market," said Orphe Divounguy,
Zillow senior economist. "Despite the presence of higher mortgage
rates, which deterred some home shoppers and kept many existing
homeowners on the sidelines, enough buyers remained to keep the
market moving. Builders recognized the unmet demand and responded
by starting more projects. New home sales rose this year while
existing home sales fell, and should make up a bigger piece of the
home sales pie for as long as rates remain elevated."
The four most valuable metro areas have remained largely
unchanged over the past five years: New
York, Los Angeles,
San Francisco and Boston. A new entrant, Miami, has claimed the fifth spot, jumping all
the way from ninth as recently as May
2021 to edge Washington,
D.C., out of the top five.
Of the six markets in which housing has gained the most value
since the start of the pandemic, four are in Florida: Tampa (+88.9%), Miami (+86.6%), Jacksonville (+82.4%) and Orlando (+72.3%). It's not surprising, then,
that Florida has surpassed
New York as the state with
the second-most-valuable housing market. Large population growth is
one reason for strong new construction figures in Florida, and the increased competition for
existing homes has also helped raise home values.
California remains a behemoth
with more than $10 trillion of value
in its housing market; nearly 20% of the national total.
Florida, New York, Texas and New
Jersey round out the top five.
Top 20 Most Valuable
Metro Areas
|
Metro
Area
|
Total Housing Market
Value (billions)
|
Change Since June
2022 'Peak' (billions)
|
Change Since June
2022 'Peak' (%)
|
United
States
|
$51,931.3
|
$1,101.6
|
2.2 %
|
New York, NY
|
$4,238.5
|
$171.8
|
4.2 %
|
Los Angeles,
CA
|
$3,710.7
|
$3.0
|
0.1 %
|
San Francisco,
CA
|
$1,816.1
|
-$176.1
|
-8.8 %
|
Boston, MA
|
$1,286.7
|
$42.1
|
3.4 %
|
Miami–Fort Lauderdale,
FL
|
$1,269.8
|
$100.5
|
8.6 %
|
Washington,
DC
|
$1,141.9
|
$35.1
|
3.2 %
|
Chicago, IL
|
$1,134.9
|
$73.2
|
6.9 %
|
Seattle, WA
|
$1,076.0
|
-$57.4
|
-5.1 %
|
San Diego,
CA
|
$994.2
|
$10.0
|
1.0 %
|
Dallas–Fort Worth,
TX
|
$950.1
|
-$2.5
|
-0.3 %
|
San Jose, CA
|
$909.4
|
-$50.1
|
-5.2 %
|
Phoenix, AZ
|
$903.2
|
-$19.5
|
-2.1 %
|
Philadelphia,
PA
|
$883.1
|
$56.2
|
6.8 %
|
Riverside,
CA
|
$784.6
|
-$25.4
|
-3.1 %
|
Houston, TX
|
$763.3
|
$25.9
|
3.5 %
|
Atlanta, GA
|
$717.8
|
$25.8
|
3.7 %
|
Denver, CO
|
$597.6
|
-$38.5
|
-6.0 %
|
Tampa, FL
|
$521.1
|
$18.5
|
3.7 %
|
Sacramento,
CA
|
$482.0
|
-$27.3
|
-5.4 %
|
Top 10 Most Valuable
States
|
State
|
Total Housing Market
Value (billions)
|
Change Since June
2022 'Peak' (billions)
|
Change Since June
2022 'Peak' (%)
|
California
|
$10,175.0
|
-$344.4
|
-3.3 %
|
Florida
|
$3,846.4
|
$159.0
|
4.3 %
|
New York
|
$3,689.9
|
-$9.0
|
-0.2 %
|
Texas
|
$3,390.3
|
$50.4
|
1.5 %
|
New Jersey
|
$1,847.5
|
$213.5
|
13.1 %
|
Massachusetts
|
$1,733.6
|
$68.7
|
4.1 %
|
Washington
|
$1,705.6
|
-$70.0
|
-3.9 %
|
Pennsylvania
|
$1,567.3
|
$89.1
|
6.0 %
|
North
Carolina
|
$1,416.8
|
$53.8
|
3.9 %
|
Virginia
|
$1,382.8
|
$78.8
|
6.0 %
|
About Zillow Group
Zillow Group,
Inc. (NASDAQ: Z and ZG)
is reimagining real estate to make home a reality for
more and more people. As the most visited real estate website in
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and its affiliates help people find and get the home they
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All marks herein are owned by MFTB Holdco, Inc., a Zillow
affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS
#10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a
Zillow affiliate.
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SOURCE Zillow