Growing at its fastest annual pace at 6.5 percent in four years, the report noted that the value gained in 2017 alone is larger than 1.5 times the gross domestic product of the U.S. and is the equivalent to more than the valuation of two companies the size of Apple.
“This was a record year for home values as the national housing stock reached record heights in 2017," said Aaron Terrazas, Zillow Senior Economist. "Strong demand from buyers and the ongoing inventory shortage keep pushing values higher, especially in some of the nation's booming coastal markets.”
Regionally, the Los Angeles and New York markets account for over 8 percent of the value of all housing across America. Los Angeles is worth $2.7 trillion and New York is worth slightly less at $2.6 trillion—with San Francisco serving as the only other market in the country with a worth more than $1 trillion.
However, Columbus, Ohio grew the most in 2017, gaining 15.1 percent. San Jose, California, Dallas, Seattle, Tampa, Florida, Las Vegas, and Charlotte, North Carolina also grew by 10 percent or more over the past year.
Buyers aren’t the only ones experiencing increases, as renters spent a record $485.6 billion in 2017—a $4.9 billion increase from 2016. In fact, renters in New York and Los Angeles spent the most on rent over the past year, and these markets are also home to the largest number of renter households.
Although renters spent more than ever on rent this year, Terrazas said that 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,” said Terrazas.