Housing Market Nears Fifty Trillion Dollars Valuation Milestone MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

The U.S. housing market is rapidly approaching the fifty trillion dollar mark, with the total value of homes across the country hitting a record forty nine point six trillion dollars, according to a new report by Redfin. This represents a three point one trillion dollars increase over the past year, marking a six point six year-over-year growth. 

In a decade, the value of U.S. homes has more than doubled, rising nearly one hundred and twenty percent from twenty two point seven trillion dollars in June 2014. Chen Zhao, Redfin’s Economics Research Lead, predicts that the market will likely surpass fifty trillion dollars within the next twelve months due to a lack of new listings keeping prices elevated. 

“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,” said Zhao. “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.”

Trillion-dollar metros double

The number of metropolitan areas where the total value of homes exceeded one trillion dollars has doubled over the past year, growing from four to eight. Anaheim, Chicago, Phoenix, and Washington, D.C., have joined New York City, Los Angeles, Atlanta, and Boston in the trillion-dollar club. San Diego and Seattle are expected to join them soon if current trends continue. 

While San Francisco’s aggregate home value is approximately seven hundred billion dollars, when combined with neighboring Oakland and San Jose, the Bay Area’s total market value nears two point five trillion dollars. Similarly, the combined Dallas-Fort Worth area surpasses the one trillion dollar threshold. 

New Jersey leads in value gains

New Jersey metros close to New York City saw the largest jumps in property value over the last year. New Brunswick’s total home value surged thirteen point three percent to five hundred eight two point six billion dollars, while Newark’s value increased thirteen point two percent to four hundred and six point two billion dollars. Other cities with significant gains include Anaheim, CA (twelve point one percent to one point one trillion dollars), Charleston, SC (eleven point eight percent to one hundred eighty eight point nine billion dollars), and New Haven, CT (eleven point eight percent to ninety one billion dollars). 

Cape Coral, FL, was the only metro to experience a decline, with a one point six percent drop in total home value to two hundred and four point two billion dollars. Sun Belt metros, particularly in Texas, showed slower growth compared to other regions, with New Orleans, Austin, North Port, FL, and Fort Worth, TX, rounding out the bottom five in terms of market value gains. 

Suburban and rural areas see growth

Suburban homes now account for over thirty trillion dollars in market value, while rural areas are experiencing the fastest growth. Rural home values rose seven percent year over year to seven point eight trillion dollars, outpacing urban areas, where values increased by six percent to ten point three trillion dollars. The number of homes in suburban areas (fifty seven million) significantly outnumbers those in urban (twenty two million) and rural (twenty one million) regions. 

Millennials driving market expansion

Millennials are emerging as key players in the housing market, with the total value of homes owned by this generation rising twenty one point five percent year over year to eight point six trillion dollars in the first quarter of 2024. This growth is nearly four times faster than that of any other generation. Millennials now represent a larger share of the homebuying market, with around two-thirds of mortgages in 2023 issued to buyers under the age of forty five. 

In contrast, the total value of homes owned by the Silent Generation declined for the fifth consecutive quarter, falling one point six percent to four point six trillion dollars. Baby boomers and Gen X saw increases of six point one percent and five point nine percent, respectively. 

Asian neighborhoods lead in value increases

Neighborhoods with a majority Asian population saw the largest increase in home values, rebounding from previous declines to rise nine percent over the past year to one point four trillion dollars. This growth is largely driven by price increases in West Coast cities. 

In comparison, majority-white neighborhoods saw a six point six percent increase in value to thirty nine point four trillion dollars. Homes in majority-Black neighborhoods rose five point four percent to one point four trillion dollars, while those in majority-Hispanic areas increased six point four percent to two trillion dollars. 

As the U.S. housing market continues to grow, the impact on various demographics and regions remains a critical area of focus for analysts and policymakers alike. 

Click here to view the report in its entirety. 

The post Housing Market Nears $50T Valuation Milestone first appeared on The MortgagePoint.

Article From: "Kyle G. Horst"   Read full article