Los Angeles Housing Market is the Most Valuable Metro Area, Worth $2.5 Trillion

U.S. housing market regains value lost during the housing crisis

By Jeff Sorg, OnlineEd Blog

canstockphoto15953582-los-angeles(December 30, 2016) – Zillow® is reporting that the housing market saw a strong year of appreciation, growing 5.7 percent in value, or $1.6 trillion.

The U.S. housing market has regained all the value lost during the housing crisis. The cumulative value of all homes in the U.S. declined by $6.4 trillion between 2006 and 2012 as the housing market collapsed.

A home is typically the biggest part of an individual or family’s wealth, and the cumulative value of the U.S. residential housing stock is similarly significant to the national economy. The U.S. GDP is an estimated $18.7 trillioni, nearly $10 trillion less than the value of all homes in the country.

Los Angeles and New York metros hold the highest shares of the country’s overall housing value, at 8.6 percent and 8 percent, respectively. The next most valuable metro is San Francisco, worth 4.2 percent of the overall housing value.

While several markets are now more valuable than they were at the height of the housing bubble, about 60 percent of the markets in the U.S. are still below the maximum values reached during the bubble years. For example, Chicago is still about $134 billion below the highest value it reached in 2006.

“Housing is incredibly important to us personally and to the economy as a whole,” said Zillow Chief Economist Dr. Svenja Gudell. “The U.S. housing stock is worth more than ever, which is a sign of the ongoing housing recovery. As buying a home gets more expensive, affordability remains a concern for many, and these numbers highlight just how much people are spending on housing. The total value of the housing stock grew nearly 6 percent this year, a pace that will likely mean some American families are priced out of homeownership.”

Renters this year paid $478.5 billionii, a $17.7 billion increase from 2015. About 635,000 new renter households formed in 2016, contributing to the amount of rent spent even as rent appreciation slowed. Apartment renters spent nearly $50 billion more than renters of single-family homes, as more multifamily construction became available this year.

Renters in the New York/Northern New Jersey metro paid the most this year, spending nearly $55 billion on rent.

Metropolitan Area  Total Home Value, Year-End 2016 Total Rent Paid, Year-End 2016
United States  $29.6 trillion $478.5 billion
New York/Northern New Jersey  $2.4 trillion $54.6 billion
Los Angeles-Long Beach-Anaheim, CA  $2.5 trillion $38.6 billion
Chicago, IL  $772.7 billion $14.9 billion
Dallas-Fort Worth, TX  $456.9 billion $11.1 billion
Philadelphia, PA  $589.2 billion $8.5 billion
Houston, TX  $373.2 billion $10.5 billion
Washington, DC  $975.1 billion $14.4 billion
Miami-Fort Lauderdale, FL  $818.8 billion $12.3 billion
Atlanta, GA  $413.6 billion $8.4 billion
Boston, MA  $672.7 billion $10.3 billion
San Francisco, CA  $1.3 trillion $15.8 billion
Detroit, MI  $288.7 billion $4.9 billion
Riverside, CA  $440 billion $7.2 billion
Phoenix, AZ  $441.5 billion $7.1 billion
Seattle, WA  $571.4 billion $8.8 billion
Minneapolis-St Paul, MN  $332.5 billion $5.1 billion
San Diego, CA  $596 billion $9.6 billion
St. Louis, MO  $192 billion $3 billion
Tampa, FL  $254.7 billion $5 billion
Baltimore, MD  $287.9 billion $4.3 billion
Denver, CO  $377.5 billion $5.8 billion
Pittsburgh, PA  $148 billion $2.3 billion
Portland, OR  $286.6 billion $4.5 billion
Charlotte, NC  $186.1 billion $3.2 billion
Sacramento, CA  $269.4 billion $4.4 billion
San Antonio, TX  $116.4 billion $3 billion
Orlando, FL  $187.5 billion $3.8 billion
Cincinnati, OH  $128.6 billion $2.4 billion
Cleveland, OH  $116.8 billion $2.3 billion
Kansas City, MO  $129.7 billion $2.7 billion
Las Vegas, NV  $175.9 billion $4 billion
Columbus, OH  $132.9 billion $2.7 billion
Indianapolis, IN  $111.7 billion $2.4 billion
San Jose, CA  $636.2 billion $6.3 billion
Austin, TX  $161.4 billion N/A

[Source: Zillow]


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About Jeff Sorg

Jeff Sorg is a co-founder of OnlineEd®, an online real estate, mortgage broker, and vocational school founded in 1997, where he also serves as Chief Executive Officer, and School Director. Sorg holds vocational and post-secondary school instructor licenses in several states and has authored numerous real estate continuing education and pre-licensing courses and has been awarded the International Distance Education Certification Center's CDEi Designation for distance education. Memberships include ARELLO (Association of Real Estate License Law Officials), the National Association of REALTORS®, Oregon Association of REALTORS®, and Portland Metro Association of REALTORS®. Awards and service include REALTOR® Emeritus in the National Association, Life Member award in Portland Metro Association and Chairperson of the Oregon Real Estate Forms Committee. OnlineEd® provides real estate, mortgage broker, insurance, and contractor pre-license, post-license, continuing education, career enhancement, and professional development and designation courses over the Internet.