The total value of private residential homes in the U.S. grew by a record amount of $6.9 trillion in 2021. Yes, that’s right. TRILLION.
The grand total value of all U.S. homes is now at a staggering $43.4 trillion. This is more than double the amount from just a decade ago. Even through the pandemic, the market value is gaining an average of over half a trillion dollars per month since June of 2021, due to an unprecedented year of home value growth nationally and in a large number of local real estate markets.
Inventory has been scarce for the majority of the past year, due to many homes going under contract in a matter of days and more buyers looking to purchase than sellers interested in selling; the record low mortgage rates of the past few years has encouraged first-time home buyers to move from renting to owning and current homeowners to refinance and stay in their home longer.
U.S. home values increased by an impressive 19.6% year over year while the number of new homes being built in 2021 was the largest number since 2007.
Here in California, our housing market continues to be the nation’s most valuable with the total residential real estate value topping at $9.24 trillion in December 2021. This represents one fifth (21.3%) of the nation’s total home value. Los Angeles metro area provided the most to the overall growth in 2021 with 6.3% of the total gains ($431 billion), followed by New York (5%), San Francisco (3.3%), San Diego (2.9%) and Phoenix (2.5%).
Properties within the top one third of home values equals 60.8% of the $43.4 trillion total, the middle third represents 26.4% and the bottom third, 12.8%. This means the top third of homes are worth 4.7 x the value of the bottom third.
For more information on our local Napa real estate market, please check out our exclusive market reports which are updated daily.