Housing’s collective value grew to $29.6 trillion this year, a record-high reflecting 5.7 percent appreciation—an additional $1.6 trillion—in 2016, according to a recently released analysis by Zillow. The most housing value in the nation is in Los Angeles, Calif., New York, N.Y., and San Francisco, Calif., at 8.6 percent, 8 percent and 4.2 percent, in order.
The continuing growth in prices, however—now marking a full recovery since the crash—has the potential to push more prospective homebuyers to the sidelines, says Zillow Chief Economist Dr. Svenja Gudell.
“Housing is incredibly important to us personally and to the economy as a whole,” says Gudell. “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. The total value of the housing stock grew nearly 6 percent this year, a pace that will likely mean some American families are priced out of homeownership.”
Despite this year’s appreciation, approximately 60 percent of housing markets remain below values reached during the bubble years, according to the analysis.
Renters, to compare—with approximately 635,000 new renter households formed this year—paid $478.5 billion in 2016, up $17.7 billion from 2015. Apartment renters paid $50 billion more than single-family home renters, and the most rent was paid in New York and Northern New Jersey, at $55 billion.
For more information, please visit www.zillow.com.
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