According to a study, Florida has surpassed New York to become the second state with the highest housing values, following California. South Florida and Tampa were ranked in the “Top 20 Most Valuable Metros” list.
The U.S. housing market grew by over $2.6 trillion in the past year due to rising home prices and new construction, according to Zillow.
The study revealed that Florida has experienced a significant increase in real estate value and is now ranked second in the US, surpassing New York State which is now in third place. California still holds the top spot with over $10 trillion worth of property, accounting for almost 20% of the total real estate value in the country.
In a list of the top 20 US metropolitan areas based on the total value of their real estate, two metro areas in Florida are included:
- As of June 2022, the Miami-Fort Lauderdale area had a total worth of $1,269.8 billion, which has increased by $100.5 billion, or 8.6%, since then.
- According to recent reports, the GDP of Tampa has increased by $18.5 billion since June 2022, resulting in a total of $521.1 billion, which is a growth of 3.7%.
While the concept of “total real estate value” is always subjective, the changes in trends come as no surprise to real estate professionals.
The estimated total value of every home in the U.S. housing market is now just under $52 trillion, which is $1.1 trillion more than the previous peak in June 2022. While a small portion of this growth is due to an average 0.7% increase in U.S. home values, the majority of the value change is attributed to new construction.
According to Zillow senior economist Orphe Divounguy, the real estate market saw a steady influx of new homes during the spring and summer months, which helped to reduce the inventory deficit and increase the overall value of the market. Despite falling existing home sales, enough buyers remained to keep the market moving forward. New home sales, on the other hand, experienced an uptick this year, and should continue to make up a larger portion of the home sales market for as long as rates remain high.
The four most valuable metropolitan areas have remained mostly unchanged over the past five years. These areas include New York, Los Angeles, San Francisco, and Boston. However, Miami, a new entrant from Florida, has claimed the fifth spot, which was previously held by Washington, D.C. Miami’s value surge caused it to jump from ninth place as recently as May 2021, knocking Washington, D.C. out of the top five.
Metros Are The Ones That Are Increasing In Value The Most.
Four of the markets that gained the most housing value since the pandemic began are located in Florida.
- Tampa: Up 88.9%
- Miami: Up 86.6%
- Jacksonville: Up 82.4%
- Orlando: Up 72.3%
According to Zillow, Florida’s new construction figures are strong due to a significant increase in population. However, the competition for existing homes has also intensified.
California still dominates the market with over $10 trillion in housing market value, which is nearly 20% of the national total. The other states in the top five include Florida, New York, Texas, and New Jersey.
20 ‘Most Valuable’ Metros And Percentage Changes Since June 2022
- New York: Up 4.2 %
- Los Angeles: Up 0.1 %
- San Francisco: Down 8.8%
- Boston: Up 3.4 %
- Miami-Fort Lauderdale: Up 8.6 %
- Washington: Up 3.2 %
- Chicago: Up 6.9 %
- Seattle: Down 5.1 %
- San Diego: Up 1.0 %
- Dallas-Fort Worth: Down 0.3 %
- San Jose, Calif.: Down 5.2 %
- Phoenix: Down 2.1 %
- Philadelphia: Up 6.8 %
- Riverside, Calif.: Down 3.1 %
- Houston: Up 3.5 %
- Atlanta: Up 3.7 %
- Denver: Down 6.0 %
- Tampa: Up 3.7 %
- Sacramento, Calif.: Down 5.4 %
- Portland, Ore.: Down 4.0%
