(NewsNation) — The number of trillion-dollar metros in the United States has doubled in the past year, and the total value of U.S. homes has reached a record $49.6 trillion, according to a new Redfin report.
Anaheim, California; Washington D.C.; Chicago, Illinois; and Phoenix, Arizona are now among the eight U.S. destinations where the total value of homes surpasses $1 trillion. Their additions come as homeownership remains out of reach for many Americans, despite anticipated interest rate cuts.
“The value of America’s housing market will likely cross the $50 trillion threshold in the next 12 months as there are not enough homes being listed to push prices down,” said Chen Zhao, Redfin economics research lead. “Mortgage rates have started falling, but many potential sellers and buyers are waiting to make a move, meaning we are likely to continue seeing a pattern where prices slowly tick up.”
That means first-time buyers will likely continue to struggle as homeowners’ equity rises.
The cost of purchasing a home is affecting potential buyers nationwide, but some areas saw stand-out growth in total home value in the past year.
Majority Asian neighborhoods saw the largest spike in total home value, rising 9% to $1.4 trillion. The increase is likely due to price growth in West Coast cities, according to Redfin.
Meanwhile, Millennials’ total home values climbed more than 20%, while the Silent Generation’s fell for the fifth consecutive quarter.
A pair of New Jersey metros — New Brunswick and Newark — saw the fastest growth in aggregate home value. Both areas are within commuting distance of New York.
Those numbers are all part of a larger trend. The total value of U.S. homes has more than doubled in the past decade, now approaching $50 trillion, compared to $22.7 trillion in June 2014.
That creates a tough market for buyers subjected to rising home values as demand outweighs supply. In January, more than 88.5% of homeowners with mortgages had a rate below the weekly 6.66% average at the time, a separate Redfin report noted. That led many homeowners to stay put rather than list their houses on the market.
Those who can afford to buy often find themselves in bidding wars over a small pool of options, further driving up value. New construction also played a role, with 97.6 million new builds this year, compared to 96.8 million the year prior.
As a result, homeownership feels far off for many Americans, according to the results of a Bloomberg Markets Live Pulse survey.
Home prices hit a record high in June even though sales were at their lowest level in six months. Although rising inventory has ignited hope that a buyer’s market is around the corner, many Americans say homeownership isn’t likely to feel accessible on a larger scale for another two years.
About 24% of respondents expect mortgage rates to become more widely affordable in 2025. Meanwhile, more than three-quarters said homeownership won’t feel attainable until 2026 or later.
