The cost of owning a home in the U.S. has soared in recent years, and Zillow has now put a striking figure on it: the housing market’s total value has jumped 57% since 2020, reaching a record $55 trillion. That means in just five years, $20 trillion has been added to the nation’s housing stock, according to data released Monday.
The numbers reflect a market that remains historically expensive. Prices have continued climbing despite high mortgage rates discouraging buyers and pushing many sellers to cut their asking prices.
The gains, however, have not been uniform. Over the past year, New York led the nation by adding $216 billion in housing value, followed by New Jersey, Illinois, and Pennsylvania. “Demand continues to outpace supply in the Northeast,” said Orphe Divounguy, Zillow’s senior economist. “In New York, listings are half of what they were before the pandemic, which has driven up the value of the existing homes.”
Meanwhile, states that boomed during the pandemic Florida, California, and Texas saw declines in housing values in 2025. Once hot spots for buyers seeking warm weather and looser Covid restrictions, these markets are cooling. Agents in those states report swelling inventories and sellers being forced to lower prices or offer incentives to attract hesitant buyers.
“We’re in a down cycle,” said Sharon Ross, a South Florida realtor, noting that soaring property taxes and skyrocketing insurance premiums are driving buyers away. “Some clients walk away the moment they see the insurance quote.”
A recent Intercontinental Exchange study confirmed that 85% of Florida counties have seen prices fall compared to last year, with California, Texas, Colorado, and Arizona also posting drops of more than 3% from their pandemic-era peaks.
Still, new construction is helping cushion the market in Sun Belt states. In Texas, more than 20% of housing value growth since 2020 has come from newly built homes second only to Utah while Florida ranks fourth nationwide on that measure. “New construction has opened up pockets of affordability,” Divounguy noted. “That’s giving first-time buyers a way into the market.”
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