The total value of U.S. homes gained $3.1 trillion over the past 12 months to reach a record $49.6 trillion, according to a new report from Redfin.
In percentage terms, the total value of the U.S. housing market grew 6.6% year over year. The total value of U.S. homes has more than doubled in the past decade, climbing nearly 120% from $22.7 trillion in June 2014.
“The value of America’s housing market will likely cross the $50 trillion threshold in the next 12 months as there are not enough homes being listed to push prices down,” said Redfin Economics Research Lead Chen Zhao. “Mortgage rates have started falling, but many potential sellers and buyers are waiting to make a move, meaning we are likely to continue seeing a pattern where prices slowly tick up. That’s great news for the millions of American homeowners who see their equity rising, but first-time buyers are going to keep finding it tough to find an affordable home.”
New construction was also another factor driving the overall increase in market valuation, Redfin noted.
Thirteen major metros posted double-digit percentage gains in total property values over the last year, led by relatively affordable New Jersey metros within commuting distance of New York, where property is more expensive. The value of properties in New Brunswick, N.J. rose 13.3% to $582.6 billion, while Newark, N.J. climbed 13.2% to $406.2 billion.
Anaheim, Calif. (up 12.1% to $1.1 trillion), Charleston, S.C. (up 11.8% to $188.9 billion), and New Haven, Conn. (up 11.8% to $91 billion) rounded out the five metros with the highest gains.
Cape Coral, Fla. was the only metro to record a fall in total home value, dropping 1.6% to $204.2 billion. Sun Belt metros — especially those in Texas — grew slower than those in other regions, with New Orleans (up 0.8% to $128.2 billion), Austin, Texas (up 1.9% to $392.8 billion), North Port, Fla. (up 2.1% to $251.8 billion) and Fort Worth, Texas (up 2.3% to $293.7 billion) rounding out the bottom five metros.
The number of metros where the total value of homes topped $1 trillion grew to eight — doubling from four a year ago — with Anaheim, Calif., Chicago, Phoenix, and Washington, D.C., joining New York, Los Angeles, Atlanta, and Boston in the trillion-dollar club. San Diego and Seattle look like they will join them in the next 12 months if home values keep increasing at a similar pace.
Rural home values outpaced those in urban areas and the suburbs, jumping 7% year over year to $7.8 trillion. The total value of homes in urban areas rose 6% to $10.3 trillion, while the value of homes in the suburbs cracked the $30 trillion mark for the first time, increasing 6.8% to $30.1 trillion.
There are around 57 million homes in the suburbs, compared to 22 million in urban areas and 21 million in rural areas.
