Zillow estimates value of all houses

The total value of all homes in the United States is now $31.8 trillion after gaining $2 trillion in 2017. That’s trillion with a “t.”

The cumulative value of the U.S. housing market grew at its fastest annual pace – 6.5%– in four years. The value of all U.S. homes rose 8% annually in the early stages of the housing recovery in 2013.

For many households, a home is the single largest source of wealth, but the collapse of the housing market and the ensuing Great Recession demonstrated the importance of housing to the U.S. economy as well, Zillow said. The housing market has gained $9 trillion since the lowest levels of the recession.

The value gained in 2017 alone is equivalent to more than the valuation of two companies the size of Apple. Over the past year, the U.S. housing market has gained $1.95 trillion, while Apple recently hit a market value of $900 billion, the first U.S. company to do so.

The Los Angeles and New York markets each account for more than 8% of the value of all U.S. housing, and are worth $2.7 trillion and $2.6 trillion, respectively. San Francisco is the only other housing market worth more than $1 trillion. 

Among the 35 largest U.S. markets, Columbus grew the most in 2017, gaining 15.1%. San Jose, Dallas, Seattle, Tampa, Las Vegas and Charlotte, N.C. also grew by 10% or more over the past year.

“This was a record year for home values as the national housing stock reached record heights in 2017," said Zillow Senior Economist Aaron Terrazas. "Strong demand from buyers and the ongoing inventory shortage keep pushing values higher, especially in some of the nation's booming coastal markets.”

He added: “Despite recent changes to federal tax laws that have historically made homeownership financially attractive, the long-term dynamics pushing up home values and rents are unlikely to change significantly in 2018."