US housing market reaches record $55.1 trillion

Rhea-AI Summary

Zillow (NYSE:ZG) reports that the U.S. housing market has reached a record value of $55.1 trillion, marking a substantial $20 trillion increase since 2020. Despite high costs cooling buyer demand, the market gained $862 billion in the past year.

The geographic landscape of housing wealth is shifting significantly, with New York leading gains at $216 billion, while traditional growth markets experienced declines, including Florida (-$109 billion) and California (-$106 billion). Nine metro areas now exceed $1 trillion in housing wealth, collectively representing 31.9% of the national total.

New construction has contributed $2.5 trillion to housing value since early 2020, with states like Utah (23%), Texas (22%), and Idaho (22%) seeing the largest share of gains from new development.

Positive

• Record $55.1 trillion total U.S. housing market value, up $20 trillion since 2020
• New construction added $2.5 trillion in housing value since 2020, creating new wealth-building opportunities
• Nine metro areas now exceed $1 trillion in housing wealth
• Smaller markets showing increased growth, indicating market diversification

Negative

• Seven states experienced housing market value losses in the past year
• Major markets Florida (-$109B), California (-$106B), and Texas (-$32B) posted significant declines
• Sun Belt's affordability advantage has eroded due to massive home value gains and rising insurance costs
• Housing affordability crisis continues despite market growth

Insights

Real Estate Economist

Housing market hit record $55.1T value, with Northeast gaining while Sun Belt cools; shifts reflect changing affordability dynamics nationwide.

The U.S. housing market has reached a significant milestone, growing to a record $55.1 trillion in total value – representing a massive $20 trillion increase since early 2020. However, annual growth has decelerated considerably, with just $862 billion added in the past year, signaling a market transition.

The most fascinating development is the geographic rotation of housing wealth. The pandemic's Sun Belt boomtowns are cooling significantly, with Florida losing $109 billion, California down $106 billion, and Texas declining $32 billion in the past year. Meanwhile, Northeastern states are surging, led by New York's $216 billion gain – accounting for approximately 25% of national growth.

This regional shift likely stems from the erosion of the Sun Belt's affordability advantage after years of substantial price appreciation and rising insurance costs. The data suggests a cyclical correction rather than a broader market collapse, as total U.S. housing wealth continues to increase.

New construction has been a critical wealth-creation engine, contributing $2.5 trillion (12.5%) of the total value increase since 2020. States like Utah, Texas, Idaho, and Florida saw 20-23% of their gains from new housing stock, demonstrating how construction creates both housing supply and household wealth.

The nine trillion-dollar metro markets still command nearly 32% of all U.S. housing wealth, but their dominance appears to be waning. Excluding New York's exceptional performance, these major markets collectively lost $18 billion in value last year, indicating that smaller markets are capturing a greater share of housing wealth growth – likely driven by remote work flexibility and affordability concerns.

This data highlights how housing wealth creation is evolving in a high-interest rate environment, with clear winners (Northeast/Midwest) and losers (parts of the Sun Belt) emerging in this transitional period. The concentration of wealth in select metros also underscores the persistent challenge of housing affordability and access nationwide.

New York leads all states with a $216 billion annual gain, while Florida and California posted the biggest declines

• The U.S. housing market is worth a record $55.1 trillion, up $20 trillion since 2020. Housing gained $862 billion in the past year.
• Seven states saw their housing markets lose value over the past year, with the biggest drops in Florida (-$109 billion), California (-$106 billion) and Texas (-$32 billion). About one-quarter of the gains nationwide came from New York, which added $216 billion.
• Nine metro areas top $1 trillion in housing wealth. Collectively, they hold nearly one-third of all housing wealth, but smaller housing markets played an outsize role in the past year's gains.

SEATTLE, Sept. 8, 2025 /PRNewswire/ -- America's homes are now worth a record $55.1 trillion, a massive $20 trillion jump since the eve of the pandemic, according to a new Zillow® analysis. But growth has slowed in the past year as high costs cooled buyer demand, with U.S. housing gaining a modest $862 billion.

For most households, a home is their biggest financial asset, meaning even modest changes in value can ripple through family budgets and the broader economy. This year's shifts show how the geography of home value gains is rotating away from pandemic boomtowns, as well as the role new construction is playing in shaping long-term housing wealth.

"Even as buyers struggled with rising costs, U.S. housing wealth kept climbing," said Orphe Divounguy, senior economist at Zillow. "New construction opened the door for many first-time homeowners, creating trillions in wealth that didn't exist five years ago. Home value gains are a windfall for longtime homeowners, but they also highlight how housing deficits that sent prices soaring left behind many aspiring first-time buyers. The bottom line is that we need more homes to solve our chronic affordability crisis."

Housing gains move north as Sun Belt loses steam
The housing market is shifting. Pandemic boomtowns in the South and Mountain West are cooling, passing the baton to states in the Northeast and Midwest. One likely factor is that the Sun Belt's affordability edge has eroded through massive home value gains and rising insurance costs.

Since early 2020, the largest total value gains have been in California ($3.4 trillion), Florida ($1.6 trillion), New York ($1.5 trillion) and Texas ($1.2 trillion). But three of those four lost ground in the past year. Florida's housing market fell by $109 billion, and California's by $106 billion.

New York, on the other hand, was part of the Northeast revival, gaining $216 billion over the past year. That is the biggest increase of any state, and it accounts for one-quarter of the national growth. Neighbor New Jersey was not far behind, gaining $101 billion, followed by Illinois ($89 billion) and Pennsylvania ($73 billion).

The role of new construction
New construction has added $2.5 trillion in housing value since early 2020 — about 12.5% of the nation's total gain. Not only has this created space for new households to form, it also represents a massive amount of new wealth-building potential.

Utah (23%), Texas (22%), Idaho (22%) and Florida (20%) saw the biggest share of housing market gains come from new construction over this period. These are states that experienced booming demand during the pandemic from households seeking more space and relative affordability.

Building more homes is the key to unlocking affordability. Sun Belt states like Texas and Florida have been the most prolific home-building states over the past few years, and have recently seen affordability gains and buyer-friendly markets as a result. These additional homes helped the market rebalance more quickly and made it a bit easier for buyers to find a foothold.

The $1 trillion club
There are nine metro areas with housing markets worth more than $1 trillion, and collectively, they hold nearly one-third of the nation's housing wealth (31.9%). They are New York ($4.6 trillion), Los Angeles ($3.9 trillion), San Francisco ($1.9 trillion), Boston ($1.3 trillion), Washington, D.C. ($1.3 trillion), Miami ($1.2 trillion), Chicago ($1.2 trillion), Seattle ($1.1 trillion) and San Diego ($1 trillion).

However, the past year's results show their dominance may be slipping. Excluding New York, which gained the most value of any metro area by a wide margin ($260 billion), the other nine $1 trillion markets combined lost $18 billion. This suggests more of the recent gains in housing market wealth are coming from smaller markets as remote work and affordability hurdles continue to reshape where Americans live.

10 Most Valuable Metro Areas
Metro Area	Total Market Value (Billions)	Total Market Value Growth, July 2024–June 2025 (Billions)
New York, NY	$4,624	$260
Los Angeles, CA	$3,864	-$15
San Francisco, CA	$1,850	-$52
Boston, MA	$1,322	-$3
Washington, DC	$1,296	$24
Miami, FL	$1,233	-$25
Chicago, IL	$1,219	$62
Seattle, WA	$1,113	$13
San Diego, CA	$1,031	-$22
San Jose, CA	$995	-$10

 

State	Total Market Value (Billions)	Share of National Total Value	Total Market Value Growth, February 2020– June 2025 (Billions)	Total Market Value Growth, July 2024– June 2025 (Billions)
United States	$55,103	100 %	$20,048	$862
California	$10,813	19.6 %	$3,400	-$106
New York	$4,296	7.8 %	$1,466	$216
Florida	$3,715	6.7 %	$1,605	-$109
Texas	$3,323	6.0 %	$1,241	-$32
New Jersey	$1,981	3.6 %	$819	$101
Massachusetts	$1,856	3.4 %	$652	$46
Washington	$1,799	3.3 %	$599	$27
Pennsylvania	$1,693	3.1 %	$610	$73
Illinois	$1,525	2.8 %	$544	$89
North Carolina	$1,518	2.8 %	$673	$21
Virginia	$1,503	2.7 %	$523	$46
Georgia	$1,358	2.5 %	$560	-$1
Colorado	$1,333	2.4 %	$464	$7
Arizona	$1,246	2.3 %	$504	-$1
Ohio	$1,228	2.2 %	$465	$49
Michigan	$1,179	2.1 %	$429	$48
Maryland	$1,016	1.8 %	$344	$29
Tennessee	$957	1.7 %	$423	$5
Wisconsin	$821	1.5 %	$305	$39
Minnesota	$797	1.4 %	$238	$26
Oregon	$777	1.4 %	$228	$3
South Carolina	$734	1.3 %	$331	$13
Connecticut	$708	1.3 %	$296	$43
Indiana	$705	1.3 %	$260	$17
Missouri	$700	1.3 %	$258	$20
Utah	$657	1.2 %	$276	$26
Nevada	$528	1.0 %	$205	$13
Alabama	$509	0.9 %	$201	$6
Hawaii	$470	0.9 %	$157	-$1
Kentucky	$446	0.8 %	$163	$20
Louisiana	$430	0.8 %	$102	$7
Idaho	$392	0.7 %	$175	$10
Oklahoma	$337	0.6 %	$123	$5
Iowa	$323	0.6 %	$109	$9
Maine	$322	0.6 %	$142	$5
Kansas	$299	0.5 %	$108	$7
New Hampshire	$299	0.5 %	$128	$11
Arkansas	$278	0.5 %	$117	$8
New Mexico	$275	0.5 %	$101	$9
Montana	$244	0.4 %	$105	$0.2
Rhode Island	$234	0.4 %	$101	$11
Mississippi	$227	0.4 %	$74	$5
Nebraska	$220	0.4 %	$80	$9
Delaware	$170	0.3 %	$68	$5
Vermont	$143	0.3 %	$63	$4
District of Columbia	$143	0.3 %	$18	-$2
West Virginia	$136	0.2 %	$46	$4
Wyoming	$119	0.2 %	$51	$7
South Dakota	$118	0.2 %	$44	$3
Alaska	$113	0.2 %	$30	$6
North Dakota	$90	0.2 %	$25	$6

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 app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®.

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). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

 

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SOURCE Zillow

FAQ

What is the current total value of the US housing market in 2025?

According to Zillow (NYSE:ZG), the U.S. housing market is worth $55.1 trillion as of September 2025, representing a $20 trillion increase since 2020.

Which states saw the biggest housing market losses in 2025?

The largest housing market value declines were recorded in Florida (-$109 billion), California (-$106 billion), and Texas (-$32 billion).

How much has new construction contributed to US housing market value since 2020?

New construction has added $2.5 trillion in housing value since early 2020, representing approximately 12.5% of the nation's total gain.

Which US metro areas have housing markets worth over $1 trillion?

Nine metro areas exceed $1 trillion: New York ($4.6T), Los Angeles ($3.9T), San Francisco ($1.9T), Boston ($1.3T), Washington D.C. ($1.3T), Miami ($1.2T), Chicago ($1.2T), Seattle ($1.1T), and San Diego ($1T).

How much did New York's housing market grow in 2025?

New York state's housing market gained $216 billion in value over the past year, accounting for approximately one-quarter of the national growth.

What is driving the shift in housing market gains from Sun Belt to Northeast?

The shift is attributed to the erosion of Sun Belt's affordability advantage due to massive home value gains and rising insurance costs, leading to stronger growth in Northeast and Midwest markets.