Housing Values Continue to Rise, Housing Market Gained $2.4T in Value Over Last Year
Data analysis for more than 90 million U.S. residential properties as of December 2023 by real estate company Redfin shows that although there's lackluster demand due to elevated mortgage rates and housing affordability challenges, home values still continue to rise. Redfin's analysis shows the total value of U.S. homes went up 5.3% from a year earlier in December to reach a total value to $47.5 trillion and was up 13.3% ($5.6 trillion) from two years earlier.
The reasons for this include a shortage of homes for sale, the fact that home values experienced an unusually large slowdown in 2022 in response to the shock of surging mortgage rates, which is part of the reason why year-over-year growth at the end of 2023 was so large, and more new-construction homes were built.
Redfin's analysis also finds that home values in urban areas, which saw the total value of homes rise 3.6% year over year to $10.1 trillion in December, aren’t holding up as well as those in the suburbs and rural areas. The value of homes in the suburbs increased 5.6% to $29.2 trillion and in rural areas home values increased by 6.3% to $7.4 trillion.
The total value of homes in Newark, NJ rose 12.8% year over year to $359.6 billion in December—a larger gain than any other metro. Next come two other East Coast metros: New Haven, CT (11.9%) and Camden, NJ (10.8%). Ranking fourth is Charleston, SC (10.8%), followed by three Midwest metros: Elgin, IL (10.4%), Grand Rapids, MI (9.8%) and Milwaukee (9.7%).