American homes climbed in value to $49.7 trillion in 2024, gaining $2.5 trillion over the course of the year.
This is a 5.2% annual increase but the slowest growth in a calendar year since 2019 and the second-slowest since 2011, according to a new Redfin analysis.
“There are more homes for sale right now than in recent years and that has led to buyer’s markets in many areas of the country. That’s good news, but it doesn’t mean homes are getting cheaper—prices continue to tick up each month,” said Redfin Economics Research Lead Chen Zhao.
“We expect prices—and therefore home values—to keep rising steadily this year because there are still enough buyers competing over a relatively small number of listings, compared to before the pandemic.”
Millennials fared particularly well, with the total value of their homes growing to nearly $10 trillion, accounting for more than 20% of the market.
New York metros Albany and Rochester had the fastest growth in aggregate home value.
Florida tanked at the other end of the spectrum, seeing appreciation stagnate. Builders have had free reign in some Southern states, leading to an uptick in new inventory that pushes competition down. Florida is also suffering from an insurance crisis that is turning potential buyers away from the state.
Price appreciation is a boon for homebuyers hoping to cash in on historically high home equity. But hopeful homebuyers face serious financial challenges. Renting remains cheaper than buying in all but two of the U.S.’s biggest metros, and inflation remains a barrier to saving.
Redfin analyzed estimates for 98 million U.S. residential properties as of December 31, 2024. The data is subject to revision.
