The total value of the U.S. housing market has grown by an astonishing 49% since before the COVID-19 pandemic. This has been led by a surge in new home construction alongside already tight home supply and increased competition that has increased the value of the average U.S. home.
But not all of this growth in home value is distributed evenly, according to a new report from Zillow.
A breakdown of the U.S. real estate market’s $52 trillion valuation shows that some states have taken a leap forward, while others have seen their total real estate value move in the other direction.
Florida has lately seen a significant population boom and a brisk pace for new home construction. Since June 2022, the state’s housing market value has increased by 4.3% to $3.62 trillion. That pushed the state ahead of New York, whose real estate value fell 0.2%, and behind only California which fell 3.2% to $10.18 billion.
Greater competition for homes in Florida has kept the real estate market active, despite the cooling effect that high mortgage rates have had on buyer demand and home listings in many parts of the country.
Miami home values are up more than 80% since the start of the pandemic, pushing the city into the top five metropolitan housing markets in the U.S. Tampa, Jacksonville and Orlando have seen similar growth in real estate value.
Among states that seen growth in their housing markets, New Jersey leads the way since June 2022 at 13.1%. The state now ranks fifth in the U.S. with a total housing value of $1.85 trillion, ahead of Massachusetts, Washington and Pennsylvania.
Despite the overall growth in home values in the U.S., Redfin reported this week that a growing number of homes listed for sale have had recent price drops. Much of this short-term activity continues to be driven by 30-year mortgage rates that remain around 7%.
Buyers, who have been deterred by high home prices and steep monthly payments, have lately turned these issues to their advantage in negotiations.
“Buyers are using things like inspection negotiations and high insurance premiums to back out of deals,” Jacksonville Redfin Premier agent Heather Kruayai said. “They’re holding a lot of the cards; today’s sellers need to concede on some details to close the deal.”
Photo credit Elvis Vasquez/Pexels.com