America’s housing market has added $20 trillion since 2020, reaching a record $55 trillion. Zillow data reveals which states gained and which lost value.
Table of Contents
America’s Housing Market Gained $20 Trillion in Just 5 Years
Buying a home in the U.S. has become more expensive than ever, and Zillow’s latest data highlights just how dramatic the surge has been. According to the report released on Monday, the total value of America’s housing market has soared by 57% since 2020, reaching a record $55 trillion in 2025.
In just five years, the market has added $20 trillion in value, showing how fast property prices have climbed — even as rising mortgage rates make homeownership tougher for many Americans.
Why Housing Prices Keep Rising
Despite higher borrowing costs, housing prices remain historically elevated. Limited inventory, strong buyer demand in certain regions, and a surge in new home construction have all contributed to the trend.
However, Zillow’s report also highlights that price gains aren’t uniform across the country. While some states are witnessing massive value jumps, others are starting to cool off.
States With the Biggest Gains in 2025
Among all states, New York led the pack with an additional $216 billion in market value over the past year. New Jersey, Illinois, and Pennsylvania closely followed, benefiting from high demand and limited housing supply.
According to Zillow’s chief economist, Orphe Divounguy, the Northeastern housing market is facing limited availability, with buyer interest far outstripping the number of homes listed for sale. “In New York, for example, available homes have dropped to nearly half of pre-pandemic levels, driving up the value of existing properties.”
Housing Slowdown Hits Pandemic Boom States
Interestingly, some of the states that experienced record demand during the pandemic — including Florida, California, and Texas — are now seeing declines in property values.
Real estate agents in these regions report that buyer interest has cooled while inventory has climbed, forcing many sellers to reduce prices or offer concessions to attract buyers.
Sharon Ross, a real estate agent in South Florida, told CNN:
Real estate experts describe the current situation as part of a cooling phase in the property market, where sellers are adjusting to lower offers and shifting buyer demand. Sellers are getting lower offers, and expectations need to be adjusted.
Rising Insurance & Taxes Adding Pressure
One of the reasons behind slower housing activity in states like Florida, Texas, and California is the sharp increase in home insurance premiums and property taxes.
These states face higher risks from natural disasters, and insurers have responded by raising coverage costs significantly. Some buyers are even canceling deals after receiving unexpectedly high insurance quotes.
Data from the Intercontinental Exchange reveals that home values dropped across the majority of Florida counties, with nearly eight out of ten regions reporting year-over-year price decreases. Similar drops were also seen in California, Texas, Colorado, and Arizona, where prices are down over 3% from their post-pandemic peaks.
New Construction Keeps Some Markets Strong
While overall buyer demand has slowed, new home construction is playing a key role in supporting housing values in certain regions.
For example:
- In Texas, over 20% of the total value gains since 2020 came from newly built homes, the highest share after Utah.
- Florida ranked fourth nationwide in value growth from new housing developments.
“New construction has created pockets of affordability,” Divounguy added. “These areas give first-time buyers an opportunity to enter the housing market, even as prices remain elevated elsewhere.”
Key Takeaways From Zillow’s 2025 Report
- 📈 $20 trillion added to the U.S. housing market in five years
- 🏠 Total market value reaches $55 trillion in 2025
- 🌆 New York leads gains with $216B added value
- 🌴 Florida, Texas & California face price declines
- 🏗️ New home construction keeps some markets stable
FAQs — U.S. Housing Market 2025
Q1. How much has the U.S. housing market grown since 2020?
Zillow estimates the total market value has increased by $20 trillion since 2020, a 57% jump.
Q2. Which states saw the biggest property value gains?
States like New York, New Jersey, Illinois, and Pennsylvania posted the strongest property value gains, whereas Florida, Texas, and California experienced notable slowdowns in housing growth.
Q3. Will home prices keep rising in 2025?
Experts say growth may slow down in some regions due to high mortgage rates and increased inventory, but prices remain historically high in most areas.