U.S. housing market has doubled in value since the Great Recession after gaining $6.9 trillion in 2021

Rhea-AI Summary

In 2021, the U.S. housing market gained a record $6.9 trillion, boosting total value to $43.4 trillion. This marked a 19.6% increase in home values, the highest since 2001. Zillow economists predict continued strong demand in 2022. California holds 21.3% of the national housing value, increasing by $1.4 trillion. New York saw its market share dip to 7.3%. Notably, states like Florida, Texas, and Colorado expanded their share in the housing market, while New York experienced the largest decline.

Positive

• U.S. housing market gained a record $6.9 trillion in 2021.
• Home values increased by 19.6%, the highest in Zillow's history.
• California's housing value rose by $1.4 trillion, representing 21.3% of the national market.

Negative

• New York's market share decreased from 7.8% to 7.3%.

SEATTLE, Jan. 27, 2022 /PRNewswire/ -- U.S. housing gained a record $6.9 trillion in 2021, nearly doubling what was previously the largest annual gain of $3.7 trillion in 2005. The full U.S. housing stock is now worth $43.4 trillion, according to a new Zillow® analysis. 

Strong demand met limited supply in 2021, driving home values up more than ever before — home values grew 19.6% last year, an all-time high in Zillow's data, which dates back more than 20 years. That remarkable rise means U.S. housing is now worth twice what it was a decade ago, in the midst of the Great Recession. Zillow economists expect another strong year in 2022. 

"Even in the context of a year in which several housing records were topped, the scale of the housing market's growth in 2021 is eye-popping," said Zillow senior economist Jeff Tucker. "Not only did prices rise faster than ever, but more homes were built than in any year since 2007 as builders raced to meet demand. Skyrocketing home values may be celebrated by longtime homeowners, but are daunting for those trying to buy their first home. This year is likely to be less competitive for buyers, but it will continue to be a sellers market."  

Nationally, the top one-third of highest-valued homes make up 60.8% of the total market value, while the lowest-valued one-third accounts for 12.8%. Put another way, the top tier of homes is worth nearly five times more than the bottom tier. 

More than one-fifth (21.3%) of the nation's housing value is in California. The state's housing stock gained $1.4 trillion in 2021 and is now worth a total of $9.2 trillion — that is more than the combined value of the bottom 30 states.

The housing market surpassed the $1 trillion milestone in four states last year: Colorado (now worth $1.2 trillion), North Carolina ($1.1 trillion), Georgia ($1 trillion) and Arizona ($1 trillion). There are now 14 states with more than $1 trillion in housing value. 

Florida, Texas and Colorado gained the most ground relative to the rest of the country in 2021. Florida's share of the housing market grew from 6% in 2020 to 6.4% in 2021, while Texas' share grew from 5.9% to 6.1%, and Colorado's share grew from 2.6% to 2.8%. New York lost more market share than any other state, falling from 7.8% of the U.S. market in 2020 to 7.3% last year while climbing from a total value of $2.8 trillion to $3.2 trillion. 

Los Angeles–area homes gained more value than any other metro in 2021, but the New York metro area remains the nation's largest housing market, worth $3.5 trillion. Los Angeles ($3.3 trillion), San Francisco ($2 trillion), Boston ($1.1 trillion) and Washington, D.C. ($1.1 trillion) round out the top five. 

The number of homes in a metro has, of course, the biggest influence on how much the value of the total housing stock increases, but there are a few notable markets that outperformed their size. Phoenix, for example, gained $171 billion in housing value last year, more than the entire state of Pennsylvania gained. Austin's housing market gained more than nearby Houston's despite having less than one-third of the number of homes.  

Top 10 States – Total Housing Market Value
State	Total Housing Market Value (Billions)	2021 Housing Market Growth (Billions)	Share of National Housing Value
California	$9,239	$1,380	21.3%
New York	$3,182	$343	7.3%
Florida	$2,762	$571	6.4%
Texas	$2,663	$506	6.1%
Washington	$1,528	$266	3.5%
Massachusetts	$1,463	$196	3.4%
New Jersey	$1,384	$184	3.2%
Pennsylvania	$1,318	$163	3.0%
Colorado	$1,200	$255	2.8%
Illinois	$1,165	$124	2.7%

 

Total Housing Market Value by   Metro
Metro Area*	Total Housing Market Value (Billions)	Total Housing Market Growth: 2021 (Billions)	Total Housing Market Growth: 2012–2021 (Billions)
United States	$43,425	$6,856	$22,825
New York, NY	$3,514	$344	$1,002
Los Angeles–Long Beach-Anaheim, CA	$3,272	$431	$1,867
Chicago, IL	$964	$104	$365
Dallas–Fort Worth, TX	$782	$151	$491
Philadelphia, PA	$731	$101	$277
Houston, TX	$644	$107	$386
Washington, D.C.	$1,080	$113	$445
Miami–Fort Lauderdale, FL	$861	$158	$504
Atlanta, GA	$724	$147	$460
Boston, MA	$1,104	$147	$566
San Francisco, CA	$1,953	$228	$1,201
Detroit, MI	$424	$67	$262
Riverside, CA	$699	$134	$445
Phoenix, AZ	$740	$171	$511
Seattle, WA	$949	$152	$624
Minneapolis–St. Paul, MN	$456	$55	$243
San Diego, CA	$914	$196	$582
St. Louis, MO	$267	$35	$110
Tampa, FL	$407	$95	$274
Baltimore, MD	$355	$39	$116
Denver, CO	$635	$130	$426
Pittsburgh, PA	$212	$25	$89
Portland, OR	$463	$76	$289
Charlotte, NC	$338	$71	$242
Sacramento, CA	$469	$85	$310
San Antonio, TX	$204	$35	$112
Orlando, FL	$283	$52	$187
Cincinnati, OH	$224	$36	$118
Cleveland, OH	$170	$21	$71
Kansas City, MO	$227	$35	$121
Las Vegas, NV	$298	$62	$214
Columbus, OH	$221	$33	$128
Indianapolis, IN	$205	$36	$120
San Jose, CA	$867	$121	$548
Austin, TX	$374	$109	$259
Virginia Beach, VA	$217	$34	$90
Nashville, TN	$267	$52	$169
Providence, RI	$268	$46	$126
Milwaukee, WI	$155	$21	$69
Jacksonville, FL	$196	$46	$129
Memphis, TN	$114	$20	$63
Oklahoma City, OK	$103	$15	$49
Louisville–Jefferson County, KY	$106	$11	$40
Hartford, CT	$130	$17	$41
Richmond, VA	$145	$18	$58
New Orleans, LA	$145	$18	$61
Buffalo, NY	$119	$20	$58
Raleigh, NC	$201	$50	$128
Birmingham, AL	$90	$12	$37
Salt Lake City, UT	$218	$53	$144

*Table ordered by market size 

About Zillow Group

Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and ease. 

Zillow Group's affiliates and subsidiaries include Zillow®, Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Zillow Homes, Inc., Trulia®, Out East®, ShowingTime®, Bridge Interactive®, dotloop®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). 

 

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SOURCE Zillow

FAQ

What was the total housing market value in the U.S. in 2021?

The total housing market value in the U.S. reached $43.4 trillion in 2021.

How much did the housing market gain in 2021?

The U.S. housing market gained a record $6.9 trillion in 2021.

What percentage did home values grow in 2021?

Home values grew by 19.6% in 2021.

Which state gained the most housing value in 2021?

California gained $1.4 trillion in housing value in 2021.

What was New York's market share in the U.S. housing market in 2021?

New York's market share fell to 7.3% in 2021.