Homeownership Wealth Surges – U.S. Housing Market Nears $50 Trillion Milestone, Redfin Reports

The value of the housing market jumped $3.1 trillion over the past year, reaching a record-breaking $49.6 trillion, according to a report from tech-driven real estate company Redfin.

This translates to a 6.6% annual growth rate. Looking at the bigger picture, the total value has more than doubled in the past decade – a 120% increase from $22.7 trillion in June 2014.

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New home construction significantly contributed to the overall market value increase.

Rural home values experienced the most significant growth, increasing by 7% to $7.8 trillion. While suburban home values also saw substantial growth, climbing 6.8% to surpass $30 trillion for the first time, urban home values increased slowly, rising 6% to $10.3 trillion.

"The value of America's housing market will likely cross the $50 trillion threshold in the next 12 months as there are not enough homes being listed to push prices down," Redfin Economics Research Lead Chen Zhao said. "Mortgage rates have started falling, but many potential sellers and buyers are waiting to move, meaning we are likely to continue seeing a pattern where prices slowly tick up. That's great news for the millions of American homeowners who see their equity rising, but first-time buyers will keep finding it tough to find an affordable home."

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Redfin analyzed about 97.6 million homes for the report, up from 96.8 million a year ago.

The most substantial property value gains occurred in New Jersey metros bordering New York City. They benefited from New York's high housing costs, making them relatively affordable alternatives. New Brunswick saw a 13.4% increase, reaching $582.6 billion, while Newark climbed 13.2% to $406.2 billion.

Anaheim, California, was up 12.1%; Charleston, South Carolina, 11.8% and New Haven, Connecticut, 11.8% rounded out the top five.

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In contrast, Sun Belt metros, particularly in Texas, experienced slower growth. Cape Coral, Florida, was the only declining market, dropping 1.6% to $204.2 billion. New Orleans, Austin, North Port, Florida, and Fort Worth, Texas saw modest gains.

Millennials are driving the housing market. The total value of homes they own soared 21.5% to $8.6 trillion in the first quarter of 2024, outpacing all other generations by nearly four times. The rapid increase is fueled by rising home prices and the growing number of millennials reaching homebuying age and financial stability. Roughly two-thirds of mortgages in 2023 were granted to buyers younger than 45.

Baby boomers and Gen X also experienced growth, with their home values increasing by 6.1% to $19 trillion and 5.9% to $13.6 trillion, respectively.

The Silent Generation continues to see their home values decline, marking the fifth consecutive quarter of losses. Their total holdings dropped 1.6% to $4.6 trillion.

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