In 2018, the total value of the U.S. housing market increased $1.9 trillion, propelling its value to a whopping $33.3 trillion, according to new data from Zillow. Zillow highlights that this 6.2% increase is up $10.9 trillion from 2012, when the housing market crashed.
While several states have experienced significant gains since the crash, California has taken the lead. In fact, the Golden State’s housing market value has climbed $3.7 trillion since February 2012. Furthermore, a third of the nation’s housing market value can be attributed to California, which is the only state that has experienced a gain of more than $1 trillion within the same time period, according to Zillow.
Notably, New York is also leading the housing market, as its market value sits at $3 trillion. This means its metro is the most valuable market in the country, representing 9.1% of the nation’s total value.
Zillow also explains that housing stock in some expensive metros is so valuable that the total value in one market often overshadows the total housing in an entire state. In fact, homes in Washington, D.C., have a combined value of $892 billion, equating more than the values of all homes in 40 individual states.
According to Zillow Senior Economist Aaron Terrazas, 2018 was a year of unusually strong, stable home value growth across the country, but cracks in the foundation are clearly starting to emerge.
“During the second half of the year, appreciation slowed sharply in the priciest corners of the country while it picked up in affordable hotspots,” Terrazas said. “Periods of stability often precede periods of instability, and the outlook for 2019 is certainly both cloudier and blurrier than the outlook a year ago.”
He indicates that while housing wealth has reached new highs this year, home value gains don’t translate into dollars unless homeowners opt to sell or borrow against their home. “In contrast to previous housing booms, many Americans have been more reluctant in recent years to spend against their home’s worth,” Terrazas said. “Moving toward an uncertain future, that may prove to be a prescient choice