America’s housing market gained $20 trillion in 5 years

FIVE AT 530. NEW ON FIVE. TODAY, THE HEALY ADMINISTRATION RELEASED THE FIRST PIECE OF UNNEEDED STATE OWNED LAND TO BE SOLD FOR DEVELOPMENT. THIS FIVE ACRE LOT SITS ON THE MIDDLESEX COMMUNITY COLLEGE CAMPUS IN BEDFORD, AND IT COULD BECOME THE SITE OF 20 NEW HOMES. IT’S PART OF THE PUSH TO BUILD MORE HOUSING IN MASSACHUSETTS AND MAKE IT MORE AFFORDABLE. SO WHERE ARE PRICES HEADING AND WHEN WILL WE FINALLY SEE MORE HOMES ON THE MARKET? MAKING A FULL RECOVERY AND MARKING A FULL RECOVERY FROM THE PANDEMIC. SO JOINING US NOW IS ANTHONY LAMACCHIA, THE CEO OF LAMACCHIA REALTY GROUP, WITH OFFICES ACROSS NEW ENGLAND AND IN FLORIDA. ANTHONY, THANKS FOR COMING IN. THANK YOU FOR HAVING ME. SO GOOD TO SEE YOU. WHAT YOU JUST SAID IS HAPPENING. YEAH. THERE’S MORE HOMES ON THE MARKET THAN THERE’S BEEN SINCE BEFORE THE PANDEMIC. ALL RIGHT. SO LET’S TALK PRICES FIRST. THEY KEEP RISING. AS OF JUNE, THE MEDIAN PRICE FOR A SINGLE FAMILY HOME IN MASSACHUSETTS WAS $687,500. THIS DATA IS FROM THE WARREN GROUP. IT’S AN INCREASE OF ABOUT 3% FROM LAST JUNE. IN GREATER BOSTON, THOUGH, IT’S EVEN MORE EXPENSIVE 850,000. THAT’S AN INCREASE FROM JUNE 2024 AS WELL. BUT IT’S NOT AS BIG OF AN INCREASE. IT’S UP ABOUT 2% YEAR OVER YEAR. AT THE SAME TIME, WE WERE JUST TALKING ABOUT THIS IN THE BREAK. THE ECONOMY IS STARTING TO FEEL A LITTLE SOFT. WE HAD IT NOT GREAT JOBS REPORT LAST WEEK. THERE’S SOME INDICATIONS THE TARIFFS MIGHT BE HAVING SOME IMPACT ON PRICES. WHERE DO YOU SEE REAL ESTATE PRICES GOING OVER THE NEXT YEAR? I HOPE THINGS SOFTEN BECAUSE THAT WILL HELP MORTGAGE INTEREST RATES. THE BETTER THE ECONOMY DOES, THE BETTER THE JOBS REPORTS ARE, THE MORE UPWARD PRESSURE THERE IS ON MORTGAGE RATES. SO WHEN I HEAR A BAD JOBS REPORT, HALF OF ME IS LIKE, OH NO. AND THEN HALF OF ME SAYS, GREAT BECAUSE IT HELPS MORTGAGE RATES. AND THAT’S PART OF WHAT WE SAW SINCE THAT REPORT A WEEK AND A HALF AGO. OBVIOUSLY, THE ECONOMY IS FINDING A NEW EQUILIBRIUM, AND THE SAME THING IS HAPPENING IN HOUSING. HOUSING AS FAR AS TOTAL HOMES SOLD GOES, HAS BEEN IN A RECESSION FOR THREE YEARS. OKAY. AND THE DIFFERENCE BETWEEN THIS TIME IN OH 8 TO 2011 IS PRICES HAVEN’T COME DOWN. AND THAT’S WHAT YOU JUST MENTIONED. THEY’RE STILL GOING UP SLIGHTLY. YEAH I WOULD ARGUE THAT. NOT QUITE. I MEAN, IF YOU MEASURE FIRST SIX MONTHS OF 25 TO FIRST SIX MONTHS OF 24, THEY’RE UP 3%. BUT IF YOU MEASURED ALL OF 24 COMPARED TO THE FIRST SIX OF 25, THERE ISN’T MUCH CHANGE. AND THIS IS A GOOD THING. WELL, MORE ON PRICES. NOW THIS HAS TO DO WITH SUPPLY AND DEMAND. AND TO YOUR FIRST POINT, WE ARE NOW FINALLY SEEING MORE SUPPLY. SO YOUR COMPANY SAYS THE NUMBER OF HOMES LISTED IN JUNE WAS UP 12% FROM LAST YEAR. IN THE MEANTIME, THE NUMBER OF HOMES SOLD WAS ONLY UP ABOUT 5%. SO DOES THAT MEAN THAT HOMES ARE SITTING ON THE MARKET LONGER? YES. AND WILL PRICES START TO DROP? SO I DON’T SEE A BIG DROP IN STORE. I MEAN, THERE’S 11,000 HOMES FOR SALE IN MASSACHUSETTS RIGHT NOW. WHAT ABOUT FOUR YEARS AGO THERE WAS ABOUT 6000. SO IT’S BETTER. THERE’S MORE TO CHOOSE FROM. BUYERS HAVE A LITTLE BIT MORE LEVERAGE. BUT TO THE PEOPLE OUT THERE THAT THINK THERE’S GOING TO BE A CRASH OR SOMETHING DRAMATIC, THE LAST TIME THERE WAS A CRASH PER SE, IN PRICING WAS 2008. THIS WEEK IN 2008, THERE WERE 46,000 HOMES FOR SALE IN MASSACHUSETTS, FOUR TIMES TODAY THERE’S 11,000. SO ARE WE GOING THROUGH A PERIOD WHERE, AS I SAID, THE MARKET’S FINDING A NEW EQUILIBRIUM? YES. ARE WE GOING THROUGH A PERIOD WHERE BUYERS FINALLY HAVE MORE LEVERAGE THAN THEY’VE HAD IN FIVE YEARS? YES. AND THAT’S GREAT. I’M ACTUALLY VERY HAPPY ABOUT IT. WE’RE ALSO IN THE SECOND PART OF THE YEAR, WHICH IS A BETTER TIME TO BE A BUYER AND NOT AS GOOD OF A TIME TO BE A SELLER. SO I LOVE TO SEE THAT. BUT THE NOTION OR THE THOUGHT THAT WE’RE GOING TO SEE PRICES DROP 10 OR 20%, IT’S JUST NOT GOING TO HAPPEN. LET’S QUICKLY TALK ABOUT MORTGAGE RATES BECAUSE YOU RAISED IT. THEY HIT A SIX MONTH LOW LAST WEEK, ABOUT SIX AND TWO THIRDS PERCENT. AT WHAT LEVEL WOULD THEY NEED TO DROP TO. IS IT INTO THE FIVES BEFORE YOU REALLY START TO SEE A CHANGE AND A LOT MORE SELLERS ARE COMFORTABLE WHO’VE BEEN HOLDING ON TO THESE HOUSES AT THESE TWO AND 3% RATES. YEP. YOU’RE ALWAYS SO EDUCATED ON THE MARKET, YOU’RE COMPLETELY RIGHT THAT A LOT OF THE REASON PEOPLE HAVEN’T BEEN SELLING IS THEY DON’T WANT TO GIVE UP THEIR RATE. WELL, WE’RE IN THE THIRD YEAR OF HIGHER RATES, AND PEOPLE THAT HAVE BEEN HOLDING ON THAT CAN’T, FOR WHATEVER REASON, ARE FINALLY LISTING THEIR HOMES. LIKE YOU MENTIONED, ERIKA THAT JUNE, THE AMOUNT OF HOMES LISTED WAS UP. THIS IS ALL GREAT NEWS. I THINK WHEN YOU SEE LOW SIXES AND A FIVE NUMBER, IT’S GOING TO BE A LOT BETTER. RIGHT NOW. WELL QUALIFIED BUYERS CAN QUALIFY FOR SIX AND A QUARTER 6.10, DEPENDING ON HOW MUCH MONEY THEY’RE PUTTING DOWN. BUT I REALLY WANT TO SEE THINGS GET IN THE FIVES. AND THEN WHEN I’M SITTING HERE IN A YEAR AND THEY’RE IN THE FIVES, I’LL BE SAYING, I CAN’T WAIT TILL THEY’RE IN THE FOURS. SURE, THAT’S WHAT WE REALLY NEED TO SEE AN ACCELERATION. BUT I DO THINK RATES ARE HEADED IN THE RIGHT DIRECTION, AND I AM HAPPY TO SEE WHAT’S GOING ON IN THE MARKET. THIS CRAZINESS FRENZY THAT WAS GOING ON FOR YEARS NEEDED TO BACK OFF. AND IT HAS. SELLERS NOW NEED TO BE REALISTIC. NO MORE DOUBLE DIGIT PRICE INCREASES YEAR OVER YEAR. NO, WE’RE NOT GOING TO SEE THAT THIS YEAR COMPARED TO

Updated: 11:27 AM CDT Sep 9, 2025

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America’s housing market gained $20 trillion in 5 years

Updated: 11:27 AM CDT Sep 9, 2025

Editorial Standards ⓘ

Buying a home has become increasingly pricey in the past few years. Now, Zillow has put a staggering number to those higher costs: America's housing market has climbed 57% since 2020, to a record $55 trillion.That means that in just five years, the U.S. housing market’s value has climbed $20 trillion, according to data from the real estate company released Monday.Zillow's findings highlight a housing market that remains historically expensive, with values climbing even as elevated mortgage rates sideline would-be buyers and force more sellers to slash asking prices.But the housing market's gains haven't been spread evenly in 2025. New York added $216 billion in value over the last year, more than any other state. New Jersey, Illinois and Pennsylvania were close behind."Demand continues to outpace supply in the Northeast," Orphe Divounguy, a senior economist at Zillow, said. "When you look at housing inventory in New York, there are only half as many homes for sale as there were before the pandemic. So you have the value of the existing housing stock really rising a lot in that market."In contrast, pandemic-era boom states Florida, California and Texas lost billions in their housing markets in 2025. Once magnets for buyers seeking sunshine – and often looser COVID restrictions – demand has started to cool off in these states.Real estate agents in Florida, California and Texas told CNN that inventory is building and that sellers have had to offer price cuts or concessions to entice buyers, who are increasingly reluctant to pay the same elevated prices they may have paid a few years ago."Real estate is cyclical, and we’re definitely in a down cycle," Sharon Ross, a real estate agent in South Florida, recently told CNN. "Sellers are getting hit with lower offers, and I’m trying to manage their expectations."That's partially due to an explosion in home insurance rates and property taxes, Ross said. Florida, along with California and Texas, is particularly vulnerable to worsening natural disasters fueled by climate change, and the cost to insure a home has risen precipitously as a result."I've had buyers cancel deals after they got the insurance quote," Ross said.A report last month from financial services company Intercontinental Exchange found that 85% of counties in Florida showed home price declines compared to a year ago. The report also found that prices declined in California, Texas, Colorado and Arizona by more than 3% from post-pandemic highs.But while overall buyer demand has faded, new home construction has helped prop up housing market values in Sun Belt markets, Zillow found. In Texas, more than one-fifth of the market’s value gains since 2020 came from newly built homes, the highest share of any state besides Utah. Florida ranked fourth of all 50 states in its share of market gains from newly built homes."New construction has created pockets of affordability across the country," Divounguy said. "Those are markets that create opportunities for people coming in and looking to get on the first rung of the housing ladder."

That means that in just five years, the U.S. housing market’s value has climbed $20 trillion, to data from the real estate company released Monday.

Zillow's findings highlight a housing market that remains historically expensive, with values climbing even as sideline would-be buyers and force more sellers to slash asking prices.

But the housing market's gains haven't been spread evenly in 2025. New York added $216 billion in value over the last year, more than any other state. New Jersey, Illinois and Pennsylvania were close behind.

"Demand continues to outpace supply in the Northeast," Orphe Divounguy, a senior economist at Zillow, said. "When you look at housing inventory in New York, there are only half as many homes for sale as there were before the pandemic. So you have the value of the existing housing stock really rising a lot in that market."

In contrast, pandemic-era boom states Florida, California and Texas lost billions in their housing markets in 2025. Once magnets for buyers seeking sunshine – and often looser COVID restrictions – .

Real estate agents in Florida, California and Texas told CNN that inventory is building and that sellers have had to offer price cuts or concessions to entice buyers, who are increasingly reluctant to pay the same elevated prices they may have paid a few years ago.

"Real estate is cyclical, and we’re definitely in a down cycle," Sharon Ross, a real estate agent in South Florida, recently told CNN. "Sellers are getting hit with lower offers, and I’m trying to manage their expectations."

That's partially due to an explosion in home insurance rates and property taxes, Ross said. Florida, along with California and Texas, is particularly vulnerable to fueled by climate change, and the cost to insure a home has risen precipitously as a result.

"I've had buyers cancel deals after they got the insurance quote," Ross said.

A last month from financial services company Intercontinental Exchange found that 85% of counties in Florida showed home price declines compared to a year ago. The report also found that prices declined in California, Texas, Colorado and Arizona by more than 3% from post-pandemic highs.

But while overall buyer demand has faded, new home construction has helped prop up housing market values in Sun Belt markets, Zillow found. In Texas, more than one-fifth of the market’s value gains since 2020 came from newly built homes, the highest share of any state besides Utah. Florida ranked fourth of all 50 states in its share of market gains from newly built homes.

"New construction has created pockets of affordability across the country," Divounguy said. "Those are markets that create opportunities for people coming in and looking to get on the first rung of the housing ladder."

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