The U.S. housing market has rebounded impressively in 2023 after a short-lived downturn late last year. The total value of the U.S. housing market has surged by more than $2.6 trillion over the past year, a new Zillow® analysis shows. 

The total value of the U.S. housing market — the sum of Zillow's estimated value for every U.S. home — is now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June. While a small chunk of this growth can be attributed to a 0.7% rise in the average value of a U.S. home during this period, the powerhouse behind this surge has been new construction. 

"A steady flow of new homes hit the market this spring and summer, helping chip away at the deep inventory deficit and boosting the total value of the market," said Orphe Divounguy, Zillow senior economist. "Despite the presence of higher mortgage rates, which deterred some home shoppers and kept many existing homeowners on the sidelines, enough buyers remained to keep the market moving. Builders recognized the unmet demand and responded by starting more projects. New home sales rose this year while existing home sales fell, and should make up a bigger piece of the home sales pie for as long as rates remain elevated." 

The four most valuable metro areas have remained largely unchanged over the past five years: New York, Los Angeles, San Francisco and Boston. A new entrant, Miami, has claimed the fifth spot, jumping all the way from ninth as recently as May 2021 to edge Washington, D.C., out of the top five. 

Of the six markets in which housing has gained the most value since the start of the pandemic, four are in Florida: Tampa (+88.9%), Miami (+86.6%), Jacksonville (+82.4%) and Orlando (+72.3%). It's not surprising, then, that Florida has surpassed New York as the state with the second-most-valuable housing market. Large population growth is one reason for strong new construction figures in Florida, and the increased competition for existing homes has also helped raise home values. 

California remains a behemoth with more than $10 trillion of value in its housing market; nearly 20% of the national total. Florida, New York, Texas and New Jersey round out the top five.