Total Value of U.S. Homes Bordered Three Trillion Dollars in 2024 MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

 The combined value of U.S. homes gained $2.5 trillion in 2024 to reach $49.7 trillion, according to a new report from Redfin. In percentage terms, the total value of the U.S. housing market grew five point two percent year-over-year. That was the slowest growth in a calendar year since 2019 and the second-slowest since 2011.

 “There are more homes for sale right now than in recent years and that has led to buyer’s markets in many areas of the country. That’s good news, but it doesn’t mean homes are getting cheaper prices continue to tick up each month,” said Chen Zhao, Redfin Economics Research Lead. “We expect prices and therefore home values to keep rising steadily this year because there are still enough buyers competing over a relatively small number of listings, compared to before the pandemic.”

 However, from $23 trillion in 2014, the overall value of American homes has more than doubled in the last ten years. In July, the total value of all residences in the United States reached a peak of $50.4 trillion. Seasonal sales dynamics are responsible for the decline to $49.7 trillion; total property values increase during the busiest purchasing seasons, which run from March to September, and decline during the winter, when fewer homes are sold.

 But, it’s important to remember that new building contributes to the overall rise in market value.

Top Ten Metros w/ the Fastest Growing Total Home Value (2024)

The “Big Apple” Saw Vast Property Gains in 2024

 The Northeast’s major metro areas saw the most percentage gains in 2024, with upstate New York’s Albany and Rochester leading the way. Rochester’s total house value jumped eleven point two percent to $124.3 billion, while Albany’s increased eleven point three percent to surpass the $100 billion milestone ($110.7 billion).

 Because there aren’t enough houses for sale in the area, prices are going up, which is why the value is increasing. Albany has the eighth-lowest amount of months of for-sale supply among major U.S. metro areas, while Rochester has the lowest.

 Newark, NJ, saw an 11.1% increase in property values to $410.8 billion, while Buffalo, another upstate New York metro area, saw an eleven percent increase to $107.8 billion. The five metros with the biggest gains were completed by Hartford, CT, which saw a ten point six percent increase to $140 billion.

 The value of all homes fell in just three metro areas, with Cape Coral, FL, seeing the largest decline at two point nine percent to $199.5 billion. Honolulu (-0.4% to $279.8 billion) and North Port, FL (-1.1% to $247 billion) followed. Tampa, FL (+0.8% to $537.1 billion) and West Palm Beach, FL (+0.3% to $471.7 billion) completed the five biggest metro areas with the slowest increase.

 In 2024, Florida’s housing market had several challenges. Just when buyer demand dropped because of the relative lack of affordability compared to a few years earlier, the pandemic-driven construction boom increased the supply of dwellings. In addition to such effects, natural disasters, such as the powerful hurricanes in October, have raised insurance premiums and raised buyer fears about climate change.

Top Ten Metros w/ the Slowest Growing Total Home Value (2024)

Millennials Making Their Mark on the Housing Market

 More over twenty bpercent of homes in the United States are currently owned by millennials, whose generation’s total home worth increased eighteen point eight percent annually to $9.7 trillion in the third quarter of 2024.

 Millennials are the largest generation in terms of numbers and have reached a point in their lives when they are financially and age-wise the largest segment of the homebuying market.

 The growth rate of the millennial generation is almost four times quicker than that of the baby boomer age, whose total house worth increased by five point two percent to $19.8 trillion. Boomers continue to hold the greatest percentage of any generation, accounting for forty one point one percent of the entire U.S. market. While the Silent Generation’s home prices decreased three point seven percent to $4.6 trillion, Gen Xers’ home values rose four point six percent to $14.1 trillion.

Suburbia vs. Rurality

 For the sixth year in a row, rural home prices surpassed those in cities and suburbs, rising six point four percent annually to $8.1 trillion. In contrast, suburban property values jumped five point one percent to $30.8 trillion, while urban home values increased four point nine percent to $10.6 trillion. The suburban population is approximately fifty nine million, whereas the urban and rural populations are twenty three million and twenty two million, respectively.

 Overall, the value of the U.S. housing market increased by $2.5 trillion in 2024, regardless of where it occurred. As quarter oen draws to a close, keep checking back to discover what 2025 has in store.

 Additionally, the overall value of residences in eight U.S. metro areas exceeds $1 trillion, with New York leading the way with a nine point four percent increase to $2.43 trillion in 2024. If home prices continue to rise at a comparable rate, San Diego and Seattle, WA, which are still vying for membership in the trillion-dollar club, should be included in 2025.

Trillion-Dollar Club: Top Ten1 Metros By Aggregate Home Value (2024)

Note: California’s Bay Area housing market (comprising San Francisco, Oakland and San Jose) is valued at $2.46T, while Dallas and Fort Worth metros in Texas are worth $1.05T combined.

Overall, the value of the U.S. housing market increased by $2.5 trillion in 2024, regardless of where it occurred. As quarter one draws to a close, keep checking back to discover what 2025 has in store.

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

The post Total Value of U.S. Homes Bordered $3T in 2024  first appeared on The MortgagePoint.

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