Despite gaining $2.5 trillion in value last year, the U.S. home market recorded its slowest annual growth since 2019 at 5.2% in 2024 and the second-slowest growth since 2011. The combined homes market was valued at $49.7 trillion to end the year, more than double the $23 million combined value set in 2014, according to Redfin research.
The combined value of homes across the country peaked at $50.4 trillion in July, but dropped toward the end of the year due to seasonal sales trends that typically see overall home values rise during the spring and summer months and fall during autumn and winter months. New construction also helps underpin the overall increase in market valuation, Redfin noted.
“There are more homes for sale right now than in recent years and that has led to buyer’s markets in many areas of the country,” said Refin economics research lead Chen Zhao. “That’s good news, but it doesn’t mean homes are getting cheaper – prices continue to tick up each month.”
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Zhao said Redfin expects prices, and home values, to keep rising steadily in 2025 because there are still enough buyers competing over a relatively small number of listings compared to before the pandemic.
Albany and Rochester, New York, led the Northeast as it gained the most combined home value in 2024. Property values in Newark, New Jersey, jumped 11.1% to reach $410.8 billion, while Buffalo climbed 11% to $107.8 billion. Hartford, Connecticut, rounded out the top growth markets with a 10.6% increase to $140 billion.
Three metros recorded decreases in total home values, including Cape Coral and North Port, Florida, at -2.9% and -1.1% respectively, and Honolulu at -0.4%. West Palm Beach and Tampa, Florida, had slightly positive growth in home values of 0.3% and 0.8%, to round out the five slowest growth metros, according to Redfin’s report. Florida’s slow growth is a result of multiple headwinds, including the pandemic-driven construction boom, natural disasters and higher insurance costs.
Millennials represent a growing share of homeownership in the United States. This generation now owns more than 20% of the U.S. home market and its total home value rose 18.8% last year to $9.7 trillion in the third quarter of 2024, said Redfin. This growth is nearly four times faster than that of baby boomers, who saw their total home value grow 5.2% to $19.8 trillion. Boomers own 41.1% of the total U.S. market, the largest share of any generation. The value of homes owned by Gen X increased 4.6% to $14.1 trillion, while the Silent Generation home values fell 3.7% to $4.6 trillion, said Redfin.
The report also found rural home values outpaced urban and suburban home values for the seventh year in a row.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
