The full U.S. housing stock is now worth an estimated $43.4 trillion. This figure comes after home values in the U.S. gained a record $6.9 trillion in 2021. For comparison, this is nearly double what was previously the largest annual gain of $3.7 trillion in 2005. Continued strong buyer demand combined with a limited supply of homes for sale resulted in home values appreciating by 19.6% last year alone. As a result, U.S. housing is now worth twice what it was a decade ago in the midst of The Great Recession.
High growth states
Not surprisingly, The Sunshine State was a leader in price appreciation for the country. In fact, Florida, Texas, and Colorado gained the most ground relative to the rest of the country in 2021. Their respective shares were as follows:
- Florida: share of the housing market grew from 6% in 2020 to 6.4% in 2021
- Texas: share of the housing market grew from 5.9% in 2020 to 6.1% in 2021
- Colorado: share of the housing market grew from 2.6% in 2020 to 2.8% in 2021
With many New Yorkers migrating out of the state, we saw New York lose more market share than any other state last year. Representing 7.8% of the U.S. market in 2020, it fell to 7.3% last year.
What makes these price gains even more impressive is that more new homes were built last year than any other year since 2007. Despite the increased number of new homes being built, we are still seeing housing inventories not meeting buyer demand. This is certainly a testament to the level of buyer demand seen throughout the market. Although these skyrocketing values are welcomed by homeowners, they are certainly presenting significant challenges for first-time home buyers.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!