By Samantha Delouya, CNN
Shopping for a house has turn into more and more dear prior to now few years. Now, Zillow has put a staggering quantity to these larger prices: America’s housing market has climbed 57% since 2020, to a file $55 trillion.
That implies that in simply 5 years, the US housing market’s worth has climbed $20 trillion, in response to knowledge from the true property firm launched Monday.
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Zillow’s findings spotlight a housing market that continues to be traditionally costly, with values climbing whilst elevated mortgage charges sideline would-be patrons and pressure extra sellers to slash asking costs.
However the housing market’s positive aspects haven’t been unfold evenly in 2025. New York added $216 billion in worth during the last yr, greater than some other state. New Jersey, Illinois and Pennsylvania had been shut behind.
“Demand continues to outpace supply in the Northeast,” Orphe Divounguy, a senior economist at Zillow, mentioned. “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 distinction, pandemic-era growth states Florida, California and Texas misplaced billions of their housing markets in 2025. As soon as magnets for patrons searching for sunshine – and sometimes looser Covid restrictions – demand has began to chill off in these states.
Actual property brokers in Florida, California and Texas instructed CNN that stock is constructing and that sellers have needed to supply worth cuts or concessions to entice patrons, who’re more and more reluctant to pay the identical elevated costs they might have paid just a few years in the past.
“Real estate is cyclical, and we’re definitely in a down cycle,” Sharon Ross, an actual property agent in South Florida, just lately instructed CNN. “Sellers are getting hit with lower offers, and I’m trying to manage their expectations.”
That’s partially as a result of an explosion in house insurance coverage charges and property taxes, Ross mentioned. Florida, together with California and Texas, is especially susceptible to worsening pure disasters fueled by local weather change, and the associated fee to insure a house has risen precipitously consequently.
“I’ve had buyers cancel deals after they got the insurance quote,” Ross mentioned.
A report final month from monetary companies firm Intercontinental Alternate discovered that 85% of counties in Florida confirmed house worth declines in comparison with a yr in the past. The report additionally discovered that costs declined in California, Texas, Colorado and Arizona by greater than 3% from post-pandemic highs.
However whereas general purchaser demand has pale, new house development has helped prop up housing market values in Solar Belt markets, Zillow discovered. In Texas, greater than one-fifth of the market’s worth positive aspects since 2020 got here from newly constructed properties, the very best share of any state apart from Utah. Florida ranked fourth of all 50 states in its share of market positive aspects from newly constructed properties.
“New construction has created pockets of affordability across the country,” Divounguy mentioned. “Those are markets that create opportunities for people coming in and looking to get on the first rung of the housing ladder.”
