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The U.S. residential property market has achieved an unprecedented valuation of $55.1 trillion. This remarkable figure represents a substantial increase of $20 trillion since early 2020, with an additional gain of $862 billion in the last year alone. Despite this overall growth, the pace of expansion has moderated, primarily influenced by elevated housing expenses. While the national market experienced a general uptick, several prominent states, including Florida, California, and Texas, witnessed a depreciation in their housing assets. In stark contrast, New York emerged as a frontrunner, contributing significantly to the national growth, underscoring a dynamic and diverse real estate landscape across the nation.

A recent analysis by Zillow revealed the nuances of this market evolution. Florida's housing inventory saw a reduction of $109 billion, California experienced a $106 billion decrease, and Texas recorded a $32 billion loss over the past year. Conversely, New York's market expanded robustly, adding an impressive $216 billion, which accounts for approximately a quarter of the national increase. Orphe Divounguy, a senior economist at Zillow, noted that despite the challenges faced by homebuyers due to escalating costs, the overall wealth tied to U.S. housing continued its upward trajectory. He emphasized that new housing developments have been pivotal, enabling many first-time buyers to enter the market and generating trillions in new wealth within the past five years. While these gains are beneficial for long-term homeowners, they also highlight a persistent issue: housing shortages have driven up prices, disadvantaging many aspiring first-time purchasers. Divounguy stressed the critical need for more housing units to alleviate the ongoing affordability crisis.

The report also detailed significant regional shifts within the housing market. Areas that experienced rapid growth during the pandemic, particularly in the Southern and Mountain West regions, are now observing a more subdued market. In contrast, states in the Northeast and Midwest are increasingly contributing to the national growth. This change is partly attributed to growing affordability challenges in the Sun Belt, where soaring prices and increased insurance costs have diminished the region's previous advantages. Since 2020, the most substantial cumulative increases in housing values have occurred in California (+$3.4 trillion), Florida (+$1.6 trillion), New York (+$1.5 trillion), and Texas (+$1.2 trillion), despite the recent annual declines in three of these states.

Furthermore, new residential construction has played a vital role in augmenting housing value. Since early 2020, new homebuilding has contributed $2.5 trillion to the total housing value, representing about 12.5% of the nationwide gain. This construction boom has facilitated market entry for more households and significantly contributed to wealth creation, particularly in states that experienced substantial population inflows during the pandemic. Utah (23%), Texas (22%), Idaho (22%), and Florida (20%) led the nation in terms of the share of housing market growth linked to new construction. Analysts suggest that the increased availability of homes has helped to ease affordability pressures and expanded options for buyers.

Remarkably, nine major U.S. metropolitan areas now possess housing markets each valued at over $1 trillion, collectively representing nearly one-third (31.9%) of the nation's total housing wealth. These include New York ($4.6 trillion), Los Angeles ($3.9 trillion), San Francisco ($1.9 trillion), Boston ($1.3 trillion), Washington, D.C. ($1.3 trillion), Miami ($1.2 trillion), Chicago ($1.2 trillion), Seattle ($1.1 trillion), and San Diego ($1 trillion), underscoring the concentration of housing wealth in these urban centers.

The U.S. housing market has undergone significant transformations, with an all-time high valuation of $55.1 trillion. The past year has seen a tempering of growth, influenced by the interplay of high costs and varying regional performance. While states like Florida, California, and Texas experienced declines, New York's robust growth provided a strong counterbalance. The pivotal role of new construction in expanding homeownership and generating wealth is evident, particularly in states that welcomed large influxes of residents during the pandemic. The increasing number of metropolitan areas surpassing the $1 trillion valuation threshold further highlights the dynamic and evolving nature of the nation's real estate landscape.