However, the cumulative wealth is primarily centered in several major markets. The Los Angeles and New York markets each account for more than 8 percent of the value of all housing and are worth $2.7 trillion and $2.6 trillion, respectively. San Francisco is the only other housing market worth more than $1 trillion. And among the 35 largest U.S. markets, Columbus, Ohio, saw the greatest valuation increase this year, gaining 15.1 percent. Other markets that grew by 10 percent or more were San Jose, Dallas, Seattle, Tampa, Las Vegas and Charlotte, N.C.
As for the nation’s renters, they spent a record $485.6 billion in 2017, an increase of $4.9 billion from 2016. Once again, Los Angeles and New York stood out, this time with the most amount spent on rent over the past year, while San Francisco rents are so high that renters collectively paid $616 million more in rent than Chicago renters did, despite there being 467,000 fewer renters in San Francisco than in Chicago.
“This was a record year for home values as the national housing stock reached record heights in 2017,” said Zillow Senior Economist Aaron Terrazas. “Strong demand from buyers and the ongoing inventory shortage keep pushing values higher, especially in some of the nation's booming coastal markets. Renters spent more than ever on rent this year, but the amount they spent grew at the slowest pace in recent years as more renters transitioned into homeownership and new rental supply slowed rent growth across the country. Despite recent changes to federal tax laws that have historically made homeownership financially attractive, the long-term dynamics pushing up home values and rents are unlikely to change significantly in 2018.”