Housing Market in 8 US Cities Surpasses $1 Trillion
- The housing market value in eight U.S. cities has surpassed $1 trillion, reflecting a rapid rise in home prices.
- This figure has doubled from four cities last year, indicating significant growth in real estate.
- The trend highlights the increasing unaffordability of housing in major urban areas.
The total value of the housing market in eight major US cities has now exceeded $1 trillion, a significant increase from just four cities last year, according to a report from Redfin released on Thursday. San Diego and Seattle follow closely, with home values around $987 billion and $971 billion, respectively. The report, which analyzed over 95 million residential properties in June 2024, revealed that the overall value of homes in the US surged by $3.1 trillion to a record $49.6 trillion in the past year. Redfin economist Chen Zhao noted that the housing market is on track to surpass the $50 trillion mark within the next year, driven by a persistent shortage of available homes that keeps prices elevated. This trend has contributed to one of the most unaffordable housing markets in recent history, exacerbated by the pandemic's impact on home prices and the Federal Reserve's aggressive interest rate hikes aimed at curbing inflation. Cities like New Brunswick and Newark in New Jersey experienced the fastest year-over-year growth in home values, while other areas such as Anaheim, New Haven, and Charleston also saw significant increases. Conversely, Cape Coral, Florida, was the only metro area to report a decline in home values, dropping by 1.6%. Despite the recent dip in mortgage rates, many potential buyers remain hesitant, with only 21% of Americans believing it is a good time to purchase a home, according to a Gallup survey. Experts suggest that while mortgage rates may be falling, the ongoing wait-and-see approach from buyers and sellers could lead to continued gradual price increases.