Total Housing Market Values Up Nearly 50% From Pre-Pandemic Levels

While new home construction has been the catalyst for housing market growth, the U.S. housing market has rebounded significantly in 2023 after a slight downturn late last year.

The total value of the U.S. housing market has surged by more than $2.6 trillion over the past year, according to a new Zillow analysis.

The total value of the U.S. housing market is now slightly less than $52 trillion, an estimated $1.1 trillion higher than the previous peak reached last June, while a small chunk of this growth can be attributed to a 0.7% rise in the average value of a U.S. home during this period.

Key Findings: 

• The total value of the U.S. housing market is 49% higher than before the start of the pandemic in February 2020.
• Among metropolitan areas, New York, Los Angeles, San Francisco, Boston and Miami are the most valuable housing markets.
• Florida now boasts the second-most-valuable real estate in the nation, surpassing New York, while California retains the top spot.

"A steady flow of new homes hit the market this spring and summer, helping chip away at the deep inventory deficit and boosting the total value of the market," said Orphe Divounguy, Senior Economist at Zillow. "Despite the presence of higher mortgage rates, which deterred some home shoppers and kept many existing homeowners on the sidelines, enough buyers remained to keep the market moving. Builders recognized the unmet demand and responded by starting more projects. New home sales rose this year while existing home sales fell, and should make up a bigger piece of the home sales pie for as long as rates remain elevated."

Top 10 Most Valuable States

1. California
2. Florida
3. New York
4. Texas
5. New Jersey
6. Massachusetts
7. Washington
8. Pennsylvania
9. North Carolina
10. Virginia

Top 10 Most Valuable Metro Areas

1. New York
2. Los Angeles
3. San Francisco
4. Boston
5. Miami–Fort Lauderdale, FL
6. Washington
7. Chicago
8. Seattle
9. San Diego
10. Dallas–Fort Worth, TX

The four most valuable metro areas, New York, Los Angeles, San Francisco and Boston, have remained largely unchanged over the past five years. The newest entry, Miami, has claimed the fifth spot, jumping all the way from ninth as recently as May 2021 to nudge Washington out of the top five.

Of the six markets in which housing has gained the most value since the start of the pandemic, four are in Florida: Tampa (+88.9%), Miami (+86.6%), Jacksonville (+82.4%), and Orlando (+72.3%). Florida now surpasses New York as the state with the second-most-valuable housing market.

Large population growth is one reason for strong new construction figures in Florida, and the increased competition for existing homes has also helped raise home values.

The Golden State, sunny and pricey California, remains dominant, with more than $10 trillion of value in its housing market—nearly 20% of the national total. Florida, New York, Texas, and New Jersey round out the top five.

To read the full report, including more data, charts, and methodology, click here.