The total value of existing and newly built homes in the U.S. hit a record high of $55.1 trillion in June. That is $20 billion more than in 2020, or 57% higher, according to a new report from Zillow.
The report also highlighted shifts in the cities where home values are rising fastest and the key role new home construction has played in boosting home values in a market in transition.
Calculated by Zillow from its own database of individual home values in the U.S. and from county records, the analysis shows that the year-over-year increase in value through June 2025 totaled $862 billion or 1.6% – a figure Zillow described as “modest.”
It underscored how “the geography of household wealth is shifting,” away from states that boomed during the pandemic toward more affordable destinations. Home prices shot up in states like California, where total home values rose $3.4 trillion, New York (up $1.5 trillion), Texas (up $1.2 trillion) and Florida (up $1.6 trillion). Now, however, many consumers are giving those states a miss and moving to more affordable cities in the Northeast and Midwest, in turn raising home valuations in the new destinations and causing billions of dollars in drops in total home values in the former boomtowns.
Housing market's whose value exceeds $1 trillion include New York ($4.6 trillion), Los Angeles ($3.9 trillion), San Francisco ($1.9 trillion), Boston ($1.3 trillion), Washington, D.C. ($1.3 trillion), Miami ($1.2 trillion), Chicago ($1.2 trillion), Seattle ($1.1 trillion) and San Diego ($1.0 trillion). Together, they represented nearly one-third of total housing wealth in the USA.
New York enjoyed the biggest gain in home values in the past year, climbing $216 billion to account for one-quarter of total U.S. growth. Other metros where home values rose over that period included Chicago (+$62 billion), Philadelphia (+$41 billion), Washington, D.C. (+$24 billion) and Detroit (+$22 billion).
Tellingly, the report found more than half of the overall growth in housing value occurred outside the nation’s 100 largest metros. ” The upshot is a housing market that’s still adding value, but with leadership changing hands,” Zillow commented.
The report also found that since 2020, new construction has added $2.5 trillion in housing value nationwide, about 12.5% of the total increase. It is also making a dent in the chronic shortage of suitable housing for the average household, while accounting for one in eight dollars of higher valuations. The beneficiaries include Utah (23%), Texas (22%), Idaho (22%) and Florida (20%). “These additional homes helped the market rebalance more quickly and made it a bit easier for buyers to find a foothold,” the report commented.
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