Housing market doubles

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. 

Five states with the greatest housing market gains in 2021
Five states with the greatest housing market gains in 2021

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
StateTotal Housing Market
Value (Billions)
2021 Housing Market
Growth (Billions)
Share of National
Housing Value
New York$3,182$3437.3%
New Jersey$1,384$1843.2%
Total Housing Market Value by  Metro
Metro Area*Total Housing
Market Value
Total Housing Market
Growth: 2021 (Billions)
Total Housing Market
Growth: 2012–2021
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 

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *