California Captured One-Third of the National Housing Recovery

California Captured One-Third of the National Housing Recovery

The United States housing market has gained nearly $11 trillion since bottoming out in 2012; California’s housing market got $3.7 trillion of it.
  • The cumulative value of the national housing market increased by $1.9 trillion in 2018 to a total of $33.3 trillion.
  • New York/Northern New Jersey is the most valuable single housing market, worth nearly 10 percent of the nation’s overall value.
  • Four of the ten most valuable housing markets are in California – Los Angeles, San Francisco, San Jose and San Diego.
  • The overall value of the Las Vegas, San Jose and Atlanta housing markets appreciated at a double-digit pace in 2018.

SEATTLE, Jan. 3, 2019 /PRNewswire/ — The U.S. national housing market is more valuable than ever, worth a cumulative $33.3 trillion in 2018. Since the market hit its lowest point in 2012, it has gained $10.9 trillion in value, and is now worth $4 trillion more than it was at the peak of the housing bubble.

A home is the single largest source of wealth for many households, and the collapse of the national housing market and subsequent recession demonstrated the importance of housing to the overall U.S. economy.

The California housing market accounts for nearly one-third of the value gained during the nationwide housing recovery. The Golden State’s total housing value has grown by $3.7 trillion since early 2012. It is the only state that has gained more than $1 trillion in value since the market fell.

Ten states have yet to regain the value lost during the Great Recession. Despite holding the number two spot when it comes to dollar contribution to the national housing recovery (a contribution of $937.9 billion, or 8.6 percent of the overall recovery), the total value of all the homes in Florida is still $263.9 billion below its peak level.

“Seen from the rearview mirror, 2018 was a year of unusually strong, stable home value growth across the country,” said Zillow® Senior Economist Aaron Terrazas. “But cracks in the foundation are clearly starting to emerge. During the second half of the year, appreciation slowed sharply in the priciest corners of the country while it picked up in affordable hotspots.

Periods of stability often precede periods of instability, and the outlook for 2019 is certainly both cloudier and blurrier than the outlook a year ago. Housing wealth may have touched new highs this year, but home value gains don’t translate into dollars in the bank account unless homeowners opt to sell or borrow against their home and, in contrast to previous housing booms, many Americans have been more reluctant in recent years to spend against their home’s worth. Moving toward an uncertain future, that may prove to be a prescient choice.”

In 2018, the national housing market gained $1.9 trillion in value, or 6.2 percent over the past year.

The New York/Northern New Jersey area is the single most valuable metro, worth $3 trillion, or 9.1 percent of the national housing market. Four California markets – Los Angeles, San Francisco, San Jose and San Diego – are among the 10 most valuable metros in the country.

Las Vegas, San Jose and Atlanta gained the most value in 2018 among the 35 largest metros, with each market seeing double-digit growth. Chicago’s housing value saw only minimal gains, up 1.6 percent, or $12.5 billion.

State 2018 Cumulative
Value Gained
Throughout Recovery
Share of Recovery
United States $33.3 trillion $10.9 trillion n/a
Alabama $295.8 billion $57.4 billion 0.5%
Alaska $81.2 billion $10.4 billion 0.1%
Arizona $708.1 billion $296.3 billion 2.7%
Arkansas $145 billion $26.1 billion 0.2%
California $7.9 trillion $3.7 trillion 33.4%
Colorado $833.8 billion $343.3 billion 3.1%
Connecticut $443.3 billion $31.4 billion 0.3%
Delaware $97.9 billion $20.3 billion 0.2%
District of
$131.8 billion $40.1 billion 0.4%
Florida $2.4 trillion $937.9 billion 8.6%
Georgia $717.4 billion $275.6 billion 2.5%
Hawaii $348.3 billion $109.5 billion 1.0%
Idaho $151.7 billion $66 billion 0.6%
Illinois $952.2 billion $183.6 billion 1.7%
Indiana $387.7 billion $87.9 billion 0.8%
Iowa $191.4 billion $49.3 billion 0.5%
Kansas $180.8 billion $29.6 billion 0.3%
Kentucky $244.3 billion $59.1 billion 0.5%
Louisiana $263.8 billion $55.9 billion 0.5%
Maine $167.4 billion $44.7 billion 0.4%
Maryland $675.8 billion $124 billion 1.1%
Massachusetts $1.1 trillion $320.5 billion 2.9%
Michigan $738.2 billion $292.9 billion 2.7%
Minnesota $510.8 billion $159.9 billion 1.5%
Mississippi $147 billion $14.6 billion 0.1%
Missouri $421.6 billion $97.6 billion 0.9%
Montana $98.5 billion $21.2 billion 0.2%
Nebraska $120.2 billion $33.6 billion 0.3%
Nevada $322.5 billion $174.2 billion 1.6%
New Hampshire $156 billion $43.5 billion 0.4%
New Jersey $1.1 trillion $182.7 billion 1.7%
New Mexico $139.8 billion $19.6 billion 0.2%
New York $2.5 trillion $672 billion 6.1%
North Carolina $805 billion $204.7 billion 1.9%
North Dakota $54.4 billion $17.5 billion 0.2%
Ohio $695 billion $172.5 billion 1.6%
Oklahoma $200 billion $41.2 billion 0.4%
Oregon $451.8 billion $182.9 billion 1.7%
Pennsylvania $942.8 billion $160.4 billion 1.5%
Rhode Island $111.6 billion $27.6 billion 0.3%
South Carolina $332.5 billion $86.5 billion 0.8%
South Dakota $56.3 billion $14.7 billion 0.1%
Tennessee $469.1 billion $144.4 billion 1.3%
Texas $1.7 trillion $495.2 billion 4.5%
Utah $339.2 billion $140.4 billion 1.3%
Vermont $60 billion $6.1 billion 0.1%
Virginia $912.5 billion $158.6 billion 1.5%
Washington $1 trillion $471.2 billion 4.3%
West Virginia $83.9 billion $18 billion 0.2%
Wisconsin $465.5 billion $117.6 billion 1.1%
Wyoming $52 billion $10.3 billion 0.1%

Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with great real estate professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow Group’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research.

Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.

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i Percentages don’t total 100% because of rounding