Miami’s housing market has emerged as one of the most valuable in the United States, as per a recent report by Zillow.
Over the past year, the total value of the U.S. housing market has surged to $52 trillion, surpassing the previous peak in June 2022 by $1.1 trillion. This represents a $2.6 trillion year-over-year increase. Zillow attributes this spike, in part, to a 0.7% rise in the average value of homes in the U.S. during the same period.
However, the primary driver behind this growth has been new construction.
Orphe Divounguy, Senior Economist at Zillow, noted, “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. 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.”
Miami’s housing market, which previously ranked as the ninth-most valuable in the nation in May 2021 with a total value of $1.23 trillion, has since climbed four spots to claim the fifth position. The dollar value of the market has increased by 86.6% in this period. Additionally, Florida was identified as the second-most valuable state in the country, with statewide real estate values rising by 4.3% since June 2022 to reach $3.8 trillion.
At the metropolitan level, New York City took the lead as the most valuable area in the country, with a total value exceeding $4.2 trillion. This represented a 4.2% increase in value from June 2022 to June 2023. Following New York were Los Angeles, San Francisco, and Boston in terms of real estate value.
