The total value of U.S. homes is poised to cross the $50 trillion mark.
That’s according to a new report from Redfin, which shows that housing has added $3.1 trillion in value over the past year, bringing its total value to $49.6 trillion. That’s a 6.6% rise in total value compared to June 2023 and 120% higher than in June 2014.
New construction has contributed heavily to the year-over-year rise, with the total number of homes increasing by about 800,000.
“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,” Redfin economics research lead Chen Zhao said in a statement.
“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,“ Zhao added. ”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.”
The number of markets that have reached $1 trillion in value has doubled since midyear 2023 as Anaheim, California; Chicago; Phoenix; and Washington, D.C. all crossed the mark. New York, Los Angeles, Atlanta and Boston were already there.
Two New Jersey markets had the highest percentage-based gains over the past year, with New Brunswick ($582.6 billion) up 13.3% and Newark ($406.2 billion) up 13.2%. Anaheim ($1.1 trillion) grew its value by 12.1%, followed by Charleston, South Carolina (up 11.8% to $188.9 billion), and New Haven, Connecticut (up 11.8% to $91 billion).
Generationally, homes owned by millennials saw their aggregate value rise 21.5%. Those owned by Generation X and baby boomers jumped 5.9% and 6.1%, respectively. Silent Generation home values fell by 1.6%, the fifth straight quarter of declines for that cohort.
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