Combined Worth of Housing Stock in the US Smashed Previous Records

The real estate got hotter in January 2018; inventory tightened, mortgage values surged up, and home rates barely stirred. According to Aaron Terrazas, a real estate expert at home search website Zillow, low-housing inventory, recession, and home buyers’ demand are some of the primary reasons whyhome values in the US market skyrocketed and reached a record level in 2017.

The persistent and disproportional drop in housing inventory led to an exceptional increase in the house values in the United States. The combined worth of US housing market hit almost $32 trillion at the beginning of this year. Let’s take a look at the stats for detailed information.

According to a report from Zillow, last year, the US housing market was closed at $29.6 trillion. And, in January 2018, this value climbed a new record of $31.8 trillion, $2 trillion more than 2017’s third-quarter US gross domestic product.

Apart from that, the market price surged remarkably by 6.5 percent at a zippy pace since 2013.

Real estate experts also reported that three counties, including Los Angeles, New York City, and San Francisco, surpassed other 35 large housing markets. As expected, Los Angeles market topped the list, closely followed by New York City and San Francisco, each worth more than $1 trillion.

The total worth of cumulative homes in the Los Angeles metro areas mounted at $2.7 trillion, based on last year’s closing price. The calculated inflation rate from 2016 was 8.9 percent.

The value of all homes in the metro areas of New York City went up 8.6 percent over the last year. And, the total cost was $2.6 trillion.

The overall cost of housing units in San Francisco was 1.4 trillion, a 4.5 percent increase from 2017. Let’s take a look at the top ten counties in the USthat held the highest housing stock value:

Metropolitan Area in the United States	Total Home Value, Year-End 2017	Total Value of Housing Stock, Year-End 2016
Los Angeles-Long Beach-Anaheim, CA	$2.7 trillion	$2.5 trillion
New York/Northern New Jersey	$2.6 trillion	$2.4 trillion
San Francisco, CA	$1.4 trillion	$1.3 trillion
Washington, DC	$996.7 billion	$975.1 billion
Miami-Fort Lauderdale, FL	$864.2 billion	$818.8 billion
Chicago, IL	$821.3 billion	$772.7 billion
San Jose, CA	$726.6 billion	$636.2 billion
Boston, MA	$719.9 billion	$672.7 billion
Seattle	$645.6 billion	$571.4 billion
San Diego, CA	$632.7 billion	$574 billion

According to real estate experts, the market regained the value of $9 trillion that was dropped since the shallowest recession. Between 2006 and 2012, the total worth of all the homes in the US was declined by $6.5 trillion during the housing crisis.

In 2017, renters collectively paid a hefty amount of $485.6 billion as rents, a $4.91 billion increase from year-end 2016. The overall annual change in rent paid in the US was 1.0 percent. Leaseholders in Los Angeles and New York City spent the most on rent. Here are the top ten cities that paid the highest rent last year in the US:

Metropolitan Area	Total Rent Paid, Year-End 2017
Los Angeles-Long Beach-Anaheim, CA	$54 billion
New York/Northern New Jersey	$38.6 billion
San Francisco, CA	$15.8 billion
Chicago, IL	$15.2 billion
Washington, DC	$14 billion
Miami-Fort Lauderdale, FL	$11.9 billion
Dallas-Fort Worth, TX	$11.8 billion
Boston, MA	$10.7 billion
Houston, TX	$10.3 billion
Seattle, WA	$9.4 billion

Among the 35 large United States housing markets, Columbus grew most last year, with 15.1 percent annual change in total value. At the start of second-quarter, the median sales value of a house jumped to $214,735 from $181,500, an increase of 10.1 percent from 2016.

Bottom Line

The combined worth of total homes in Americas was recorded more than the combined gross domestic product (GDP) of the United States and China. By the end of 2017, the value of all residential properties across the US increased by 6.5 percent or $2 trillion, and country’s housing stock is now worth $31.8 trillion.

Not to mention, the median price to purchase a decent home in the United States is now more than seven times the average annual income of an American. This surge in house values is forcing would-be home buyers to stuck in the rental rut.

If you want the latest insights on the housing market in the U.S. or need any information related to residential real estate loans, then our experts are here to help you. Call us at (909) 377-3137 or drop a message at bb@arrowbcd.com.