The U.S. housing market has rebounded in 2023, surging by $2.6 trillion in total over the past year. The powerhouse behind this surge has been new construction as a steady flow of homes have hit the market this spring and summer, boosting the market’s total value. But some markets like Jacksonville have experienced outsized growth.
Builders have chipped away at the housing deficit as a steady flow of new homes have hit the market this spring and summer, according to Zillow’s latest data.
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, led by 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.”
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, Zillow said in its report, 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.
In the Jacksonville metro area:
- The total value of the housing market — the sum of Zillow’s estimated value for every home — is $247 billion. That is $7 billion more than the housing market was worth a year ago.
- Since the start of the pandemic, the total housing market value is up 82.4%.
- 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%).
Click through the gallery to see a breakdown of the First Coast’s middle-class single-family residences price breakdown and expected growth:
First Coast Middle-Class Single Family Residence Value September 2023
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