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U.S. housing market has doubled in value since the Great Recession after gaining $6.9 trillion in 2021

U.S. housing market has doubled in value since the Great Recession after gaining $6.9 trillion in 2021


SEATTLE, Jan. 27, 2022 /PRNewswire/ — U.S. housing gained a record $6.9 trillion in 2021, nearly doubling what was previously the largest annual gain of $3.7 trillion in 2005. The full U.S. housing stock is now worth $43.4 trillion, according to a new Zillow® analysis

Strong demand met limited supply in 2021, driving home values up more than ever before — home values grew 19.6% last year, an all-time high in Zillow’s data, which dates back more than 20 years. That remarkable rise means U.S. housing is now worth twice what it was a decade ago, in the midst of the Great Recession. Zillow economists expect another strong year in 2022. 

“Even in the context of a year in which several housing records were topped, the scale of the housing market’s growth in 2021 is eye-popping,” said Zillow senior economist Jeff Tucker. “Not only did prices rise faster than ever, but more homes were built than in any year since 2007 as builders raced to meet demand. Skyrocketing home values may be celebrated by longtime homeowners, but are daunting for those trying to buy their first home. This year is likely to be less competitive for buyers, but it will continue to be a sellers market.”  

Nationally, the top one-third of highest-valued homes make up 60.8% of the total market value, while the lowest-valued one-third accounts for 12.8%. Put another way, the top tier of homes is worth nearly five times more than the bottom tier. 

More than one-fifth (21.3%) of the nation’s housing value is in California. The state’s housing stock gained $1.4 trillion in 2021 and is now worth a total of $9.2 trillion — that is more than the combined value of the bottom 30 states.

The housing market surpassed the $1 trillion milestone in four states last year: Colorado (now worth $1.2 trillion), North Carolina ($1.1 trillion), Georgia ($1 trillion) and Arizona ($1 trillion). There are now 14 states with more than $1 trillion in housing value. 

Florida, Texas and Colorado gained the most ground relative to the rest of the country in 2021. Florida’s share of the housing market grew from 6% in 2020 to 6.4% in 2021, while Texas’ share grew from 5.9% to 6.1%, and Colorado’s share grew from 2.6% to 2.8%. New York lost more market share than any other state, falling from 7.8% of the U.S. market in 2020 to 7.3% last year while climbing from a total value of $2.8 trillion to $3.2 trillion

Los Angeles–area homes gained more value than any other metro in 2021, but the New York metro area remains the nation’s largest housing market, worth $3.5 trillion. Los Angeles ($3.3 trillion), San Francisco ($2 trillion), Boston ($1.1 trillion) and Washington, D.C. ($1.1 trillion) round out the top five. 

The number of homes in a metro has, of course, the biggest influence on how much the value of the total housing stock increases, but there are a few notable markets that outperformed their size. Phoenix, for example, gained $171 billion in housing value last year, more than the entire state of Pennsylvania gained. Austin’s housing market gained more than nearby Houston’s despite having less than one-third of the number of homes.  

Top 10 States – Total Housing Market Value

State

Total Housing Market
Value (Billions)

2021 Housing Market
Growth (Billions)

Share of National
Housing Value

California

$9,239

$1,380

21.3%

New York

$3,182

$343

7.3%

Florida

$2,762

$571

6.4%

Texas

$2,663

$506

6.1%

Washington

$1,528

$266

3.5%

Massachusetts

$1,463

$196

3.4%

New Jersey

$1,384

$184

3.2%

Pennsylvania

$1,318

$163

3.0%

Colorado

$1,200

$255

2.8%

Illinois

$1,165

$124

2.7%

 

Total Housing Market Value by

  Metro

Metro Area*

Total Housing
Market Value
(Billions)

Total Housing Market
Growth: 2021 (Billions)

Total Housing Market
Growth: 2012–2021
(Billions)

United States

$43,425

$6,856

$22,825

New York, NY

$3,514

$344

$1,002

Los Angeles–Long Beach-Anaheim, CA

$3,272

$431

$1,867

Chicago, IL

$964

$104

$365

Dallas–Fort Worth, TX

$782

$151

$491

Philadelphia, PA

$731

$101

$277

Houston, TX

$644

$107

$386

Washington, D.C.

$1,080

$113

$445

Miami–Fort Lauderdale, FL

$861

$158

$504

Atlanta, GA

$724

$147

$460

Boston, MA

$1,104

$147

$566

San Francisco, CA

$1,953

$228

$1,201

Detroit, MI

$424

$67

$262

Riverside, CA

$699

$134

$445

Phoenix, AZ

$740

$171

$511

Seattle, WA

$949

$152

$624

Minneapolis–St. Paul, MN

$456

$55

$243

San Diego, CA

$914

$196

$582

St. Louis, MO

$267

$35

$110

Tampa, FL

$407

$95

$274

Baltimore, MD

$355

$39

$116

Denver, CO

$635

$130

$426

Pittsburgh, PA

$212

$25

$89

Portland, OR

$463

$76

$289

Charlotte, NC

$338

$71

$242

Sacramento, CA

$469

$85

$310

San Antonio, TX

$204

$35

$112

Orlando, FL

$283

$52

$187

Cincinnati, OH

$224

$36

$118

Cleveland, OH

$170

$21

$71

Kansas City, MO

$227

$35

$121

Las Vegas, NV

$298

$62

$214

Columbus, OH

$221

$33

$128

Indianapolis, IN

$205

$36

$120

San Jose, CA

$867

$121

$548

Austin, TX

$374

$109

$259

Virginia Beach, VA

$217

$34

$90

Nashville, TN

$267

$52

$169

Providence, RI

$268

$46

$126

Milwaukee, WI

$155

$21

$69

Jacksonville, FL

$196

$46

$129

Memphis, TN

$114

$20

$63

Oklahoma City, OK

$103

$15

$49

Louisville–Jefferson County, KY

$106

$11

$40

Hartford, CT

$130

$17

$41

Richmond, VA

$145

$18

$58

New Orleans, LA

$145

$18

$61

Buffalo, NY

$119

$20

$58

Raleigh, NC

$201

$50

$128

Birmingham, AL

$90

$12

$37

Salt Lake City, UT

$218

$53

$144

*Table ordered by market size 

About Zillow Group

Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life’s next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and ease. 

Zillow Group’s affiliates and subsidiaries include Zillow®, Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Zillow Homes, Inc., Trulia®, Out East®, ShowingTime®, Bridge Interactive®, dotloop®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). 

 

SOURCE Zillow





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