Housing Market Nears 50 Trillion in Value as Number of Trillion-Dollar Metros Doubles

Introduction

The total value of homes in the United States has increased by $31 trillion over the past 12 months, reaching a record-breaking $49.6 trillion, according to a new report from Redfin. The surge in home values has been driven by a combination of factors, including low mortgage rates, a shortage of available homes for sale, and an increase in demand for housing from investors.

Key Findings

Redfin's analysis examined the Redfin Estimate for roughly 976 million homes compared to 968 million homes a year ago. The report found that:

• The value of the housing market jumped 31 trillion over the past year reaching a record-breaking 496 trillion.
• The US housing market is on track to hit a record 50 trillion in value.
• Redfin said US homes gained 3 trillion in value.
• There are now eight metros up from four a year ago where the total value of homes topped 1 trillion.

The increase in the number of trillion-dollar metros is a sign of the growing concentration of wealth in major urban areas. The eight trillion-dollar metros are:

• New York
• Los Angeles
• San Francisco
• Washington, D.C.
• Boston
• Seattle
• San Diego
• Denver

The rising cost of housing in trillion-dollar metros is making it increasingly difficult for first-time buyers to enter the market. In many cases, buyers are being forced to look for homes in less expensive areas outside of the major urban centers.