U.S. Homes Worth Nearly $32 Trillion

Zillow, Seattle, said total U.S. housing stock gained $2 trillion in value in 2017, to $31.8 trillion.

Zillow reported the value of all U.S. homes grew 6.5 percent in 2017, the fastest pace in four years. The value of all U.S. homes rose 8 percent annually in the early stages of the housing recovery in 2013. The housing market has gained $9 trillion since the lowest levels of the recession.

Los Angeles, New York and San Francisco ranked as the most valuable housing markets, each worth more than $1 trillion. The Los Angeles and New York markets each account for more than 8 percent of the value of all U.S. housing, and are worth $2.7 trillion and $2.6 trillion, respectively.

Among the 35 largest U.S. markets, Columbus grew the most in 2017, gaining 15.1 percent. San Jose, Dallas, Seattle, Tampa, Las Vegas and Charlotte, N.C. also grew by 10 percent or more over the past year.

Additionally, Zillow said renters spent a record $485.6 billion in 2017, an increase of $4.9 billion from 2016.

“Strong demand from buyers and the ongoing inventory shortage keep pushing values higher, especially in some of the nation’s booming coastal markets,” said Zillow Senior Economist Aaron Terrazas. “Renters spent more than ever on rent this year, but the amount they spent grew at the slowest pace in recent years as more renters transitioned into homeownership and new rental supply slowed rent growth across the country. Despite recent changes to federal tax laws that have historically made homeownership financially attractive, the long-term dynamics pushing up home values and rents are unlikely to change significantly in 2018.”

The report said renters in New York and Los Angeles spent the most on rent over the past year. These markets are also home to the largest number of renter households. San Francisco rents are so high that renters collectively paid $616 million more in rent than Chicago renters did, despite there being 467,000 fewer renters in San Francisco than in Chicago. Las Vegas, Minneapolis and Charlotte, N.C. had the largest gains in the total amount of rent paid, with each increasing by more than 7 percent since 2016.