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According to Zillow's newest analysis, U.S. housing market gained a record $6.9 trillion in 2021 and is now worth $43.4 trillion, doubled in value since the midst of the Great Recession. The previous largest annual gain was $3.7 trillion in 2005.
Due to strong demand and limited supply in 2021, home values grew 19.6% last year, an all-time high in Zillow's data, which dates back more than 20 years. Zillow economists expect 2022 to be another strong year.
The five greatest housing market gains are California, Florida, Texas, New York, and Washington. More than one-fifth (21.3%) of the nation's housing value is in California, which is now worth a total of $9.2 trillion — that is more than the combined value of the bottom 30 states. This list is heavily influenced by the overall size of the market and population.
"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, " said Zillow senior economist Jeff Tucker.
Source: Zillow
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