The value of US housing stock reached record highs in 2016, with Los Angeles emerging as the country’s most valuable metro. According to a new analysis by the listing site Zillow, the US housing market has now regained all the value it lost during the housing crisis.
The total value of the country’s housing stock grew to the record-high of $29.6 trillion in 2016. Last year, the housing market recorded strong appreciation, growing nearly 6 percent, or $1.6 trillion. During the housing crisis, the value of all homes in the US fell by $6.4 trillion. Following 2016’s strong growth, the market has now regained the amount lost between the years 2006 and 2012 in the housing market collapse, says Zillow.
Just as a home is typically the most valuable asset owned by an American household, Zillow’s report points out that the country’s housing stock is similarly important to the US economy. In the company’s media release accompanying the new data, Zillow compared the value of the country’s housing stock to the US Gross Domestic Product (GDP), the total value of all final goods and services produced within the US economy during a specified period of time. The US GDP in 2016 was estimated to be $18.7 trillion, almost $10 trillion less than the total value of all homes in the US during the same period.
The Los Angeles and New York metros held the largest percentage of the overall housing value, at 8.6 percent and 8 percent respectively. The estimated total home value in 2016 for Los Angeles was $2.5 trillion. And, with an estimated total value of $2.4 trillion, New York was only slightly below Los Angeles.
Meanwhile, San Francisco rounded out the top 3. It had 4.2 percent of the country’s overall housing value in 2016, with an estimated total home value of $1.3 trillion.
Portland recorded the largest increase in value in 2016, growing 13.4 percent.
US renters shelled out $478.5 billion in 2016, which was up $17.7 billion from 2015. Nearly 635,000 new renter households were established in 2016, adding significantly to the total rent paid despite rent appreciation slowing.
New York metro renters paid the most nationwide, paying nearly $55 billion on rent in 2016.
“The U.S. housing stock is worth more than ever, which is a sign of the ongoing housing recovery. As buying a home gets more expensive, affordability remains a concern for many, and these numbers highlight just how much people are spending on housing,” said Zillow Chief Economist Dr. Svenja Gudell.
However, Gudell added that the quickened pace of appreciation will likely mean that some American families will be priced out of homeownership in 2017.
Click here to read the entire report.