Despite the disruption, 2020 proved to be a solid year for the housing market. The full U.S. housing stock gained about $2.5 trillion in value last year, including $2.2 trillion from appreciation of existing homes and $274 billion from new construction. That $2.5 trillion gain is more than in any year since 2005, and analysts at Zillow expect bigger growth in 2021, driven in part by the work-from-home movement.
Housing demand was already strong coming into 2020 with the large Millennial generation aging into prime first-time home-buying age and mortgage rates hovering near record lows. But according to Zillow, “The widespread shift to remote work during the COVID-19 pandemic prompted many to reevaluate their housing options and supercharged demand.”
“2020 was a record-breaking year for the housing market with intense competition among buyers driving up home prices,” said Zillow economist Treh Manhertz. “While many faced financial hardships because of the pandemic, others fortunate enough to maintain stable income took a step back to contemplate what they wanted their home to be and hopped on Zillow to help find a place that filled their wish list. Builder confidence, perhaps in reaction to the boosted demand, hit record highs and more homes are being built as a result. Add that together and you see why the housing market gained more than in any year since the Great Recession.”
| Total Housing Market Value by Metro | |||
| Metro Area* | Total Housing Market Value (Billions) |
Total Housing Market Value Growth: 2020 (Billions) |
Total Housing Market Value Growth: 2011-2020 (Billions) |
| New York, NY | $3,132 | $57 | $639 |
| Los Angeles, CA | $2,813 | $262 | $1,358 |
| Chicago, IL | $849 | $44 | $195 |
| Dallas-Fort Worth, TX | $625 | $38 | $333 |
| Philadelphia, PA | $622 | $49 | $143 |
| Houston, TX | $533 | $42 | $272 |
| Washington, DC | $978 | $75 | $334 |
| Miami-Fort Lauderdale, FL | $698 | $35 | $327 |
| Atlanta, GA | $570 | $50 | $287 |
| Boston, MA | $955 | $79 | $398 |
| San Francisco, CA | $1,712 | $90 | $913 |
| Detroit, MI | $354 | $32 | $189 |
| Riverside, CA | $551 | $45 | $285 |
| Phoenix, AZ | $563 | $67 | $328 |
| Seattle, WA | $791 | $73 | $433 |
| Minneapolis-St. Paul, MN | $399 | $29 | $167 |
| San Diego, CA | $713 | $90 | $360 |
| St. Louis, MO | $230 | $16 | $63 |
| Tampa, FL | $310 | $34 | $164 |
| Baltimore, MD | $313 | $20 | $56 |
| Denver, CO | $497 | $48 | $283 |
| Pittsburgh, PA | $184 | $8 | $60 |
| Portland, OR | $382 | $34 | $194 |
| Charlotte, NC | $263 | $28 | $158 |
| Sacramento, CA | $377 | $38 | $202 |
| San Antonio, TX | $167 | $9 | $74 |
| Orlando, FL | $230 | $15 | $127 |
| Cincinnati, OH | $187 | $23 | $74 |
| Cleveland, OH | $149 | $12 | $43 |
| Kansas City, MO | $189 | $18 | $79 |
| Las Vegas, NV | $233 | $18 | $140 |
| Columbus, OH | $186 | $20 | $90 |
| Indianapolis, IN | $166 | $18 | $80 |
| San Jose, CA | $747 | $53 | $418 |
| Austin, TX | $264 | $27 | $152 |
| Virginia Beach, VA | $181 | $18 | $48 |
| Nashville, TN | $213 | $12 | $114 |
| Providence, RI | $218 | $18 | $67 |
| Milwaukee, WI | $134 | $8 | $42 |
| Jacksonville, FL | $149 | $15 | $73 |
| Memphis, TN | $92 | $11 | $39 |
| Oklahoma City, OK | $88 | $7 | $33 |
| Louisville, KY | $94 | $4 | $29 |
| Hartford, CT | $112 | $7 | $15 |
| Richmond, VA | $126 | $8 | $35 |
| New Orleans, LA | $127 | $5 | $40 |
| Buffalo, NY | $97 | $9 | $37 |
| Raleigh, NC | $149 | $14 | $71 |
| Birmingham, AL | $76 | $5 | $23 |
| Salt Lake City, UT | $164 | $19 | $85 |
| *Table ordered by market size | |||
