Despite a bleak housing market for potential homebuyers, the outlook is different for some homeowners in the country. Indeed, total value of the U.S. housing market is up a whopping 49% when compared to the period before the start of the pandemic in February 2020, according to a Zillow analysis. And some states have a hotter market than others.
The analysis also noted that in the past year, the total value of the U.S. housing market has surged by more than $2.6 trillion — being now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June.
Here are the states with the most value in their housing markets, according to Zillow.
$10.17 trillion of value in its housing market, representing an eye-popping 20% of the national total. This also represents a 3.3% decrease since the June 2022 peak.
$3.84 trillion of value in its housing market, which is a 4.3% increase since the June 2022 peak.
$3.68 trillion of value in its housing market — a 0.2% decrease since the June 2022 peak.
$3.39 trillion of value in its housing market, a 1.5% increase since the June 2022 peak.
$1,84 trillion of value in its housing market — representing a 13.1% increase since the June 2022 peak.
And in terms of the most valuable cities, Zillow noted that the rankings have remained largely unchanged in the past five years. They include New York, Los Angeles, San Francisco, and Boston. A new entrant, Miami, has jumped to the fifth spot from ninth, edging Washington, D.C. out of the top five.
Drivers Behind the Increase in Housing Market Value, Explained
According to Zillow, one of the drivers of the growth is the 0.7% rise in the average value of a U.S. home during this period. But the main driver 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,” Orphe Divounguy, Zillow senior economist, stated in a press release.
“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.”
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