By Mike Sunnucks | Rose Law Group Reporter
Arizona’s housing market is valued at $1 trillion with the Phoenix metro area seeing significant gains in real estate values in 2021.
That is according to a year-end analysis by Zillow.
The U.S. housing market gained a record $6.9 trillion in value in 2021 even as the coronavirus pandemic and its economic impacts continued to hit lower-wage and frontline workers and businesses.
The $6.9 trillion gain in value is the largest beating the previous record of $3.7 trillion in 2005.
The U.S. housing market is now worth $43.4 trillion spurred by a 19.6% national rise in home values, according to Zillow.
“Even in the context of a year in which several housing records were topped, the scale of the housing market’s growth in 2021 is eye-popping,” said Zillow senior economist Jeff Tucker. “Not only did prices rise faster than ever, but more homes were built than in any year since 2007 as builders raced to meet demand. Skyrocketing home values may be celebrated by longtime homeowners, but are daunting for those trying to buy their first home. This year is likely to be less competitive for buyers, but it will continue to be a sellers market.”
The highest-priced homes make up 61% of the total market value in the U.S. Stock market records during the pandemic have helped increase wealth at the top of the economic ladder.
California makes up more than one-fifth — 21.3% — of the U.S. housing values. The Golden State and its pricey real estate markets gained $1.4 trillion in value in 2021 and is now worth $9.2 trillion.
Arizona’s market is worth $1 trillion joining Colorado ($1.2 trillion), North Carolina ($1.1 trillion) and Georgia ($1 trillion) in hitting or passing the trillion-dollar mark in residential real estate values.
The Phoenix market spurred Arizona’s overall gains. The Valley added $171 billion in housing values in 2021. That is more than the entire state of Pennsylvania, according to Zillow.
Florida and Texas also gained housing values and shares of the overall U.S. marketplace in 2021 while New York lost some of its share of the total market and still has a total housing market value of $3.2 billion, according to Zillow.
The New York City metro area is still also the top housing market in the country, worth $3.5 trillion followed by Los Angeles ($3.3 trillion), San Francisco ($2 trillion), Boston ($1.1 trillion) and Washington, D.C. ($1.1 trillion).
