The value of the American real estate market jumped for amazing 20 trillion dollars in the last five years, reaching a historical record of 55 trillion, show new data from Zillow.
While the northeastern countries lead to growth, market in Florida, California and Texas recorded a decline in value due to high taxes, insurance and climate risks.
The purchase of the house became more expensive in recent years. Now Zillow put an incredible number on those costs: the US real estate market increased 57% of the 2020. Years, on a record 55 trillion dollars.
This means that in just five years, the value of the real estate market in the US jumped for 20 trillion dollars, according to the real estate company published on Monday.
The Zillowa finds that the real estate market remains historically expensive, with prices that grow although high interest rates discourage customers and compel the sellers to lower the prices.
However, growth is not evenly distributed in 2025. years. New York added as much as $ 216 billion values in the last year – more than any other federal state. Right behind the New Yerseus, Illinois and Pennsylvania.
“Demand still surpasses the offer in the northeast”, says Orfe Divounguy, a senior economist in Zillow. “When you look at the offer of apartments in New York, today it is twice as fewer than before the pandemic. That is why the value of the existing housing stock is growing strongly in that market.”
In contrast, states that have experienced Bum Florida, California and Texas during the pandemic – billions in the real estate market in 2025. Years. Once attractive to customers because of the sun and milder Covid measures, they now record demand fall.
Real estate agents in these countries say the offer increases and that the sellers are forced to offer discounts and concessions to attract customers, which no longer want to pay too high prices as a few years ago.
“Real estate are cyclic and now we are certainly in the descending phase,” Sharon Ross agent said from Florida. “The sellers receive lower bids, and I try to explain the reality to them.”
Partially, the decline is due to the explosion of insurance prices and property taxes. Florida, along with California and Texas, is especially vulnerable to increasingly natural disasters caused by climate change, which drastically raised insurance prices, investor me.
“I had customers who gave up on shopping after they got an insurance offer,” Ross says.
InterContinental Exchange report showed last month that in 85% of the district in Florida recorded a drop in the prices of apartments compared to the previous year. A similar trend was seen in California, Texas, Colorado and Arizona, where prices fell for more than 3% with post-competitive maximums.
However, Zillow states that new construction helps maintain the market value in the southern US. In Texas, more than a fifth of growth of 2020. comes from newly built homes – the largest share among all countries except Jute. Florida is a fourth per criterion.
“The new construction creates accessibility pockets around the country,” Divounguy points out. “These are markets that offer the opportunity to take people to step on the first step of the housing scale.”
