U.S. Home Values Gained $1.1 Trillion, Renters Paid Record $535 Billion in 2015

U.S. Home Values Gained $1.1 Trillion, Renters Paid Record $535 Billion in 2015

Despite slowing home value growth, several markets are more valuable than ever

– The cumulative value of all homes in the United States is $28.5 trillion at the end of 2015, up 4.1 percent from 2014.

– U.S. renters paid $535 billion in rent as the number of renter households rose by 1.8 million over the past year.

– In November, home values rose 3.9 percent to a Zillow Home Value Index of $183,000.

The value of all homes nationwide grew $1.1 trillion in 2015, and is expected to end the year at $28.5 trillion total. The value of the entire housing stock grew 4.1 percent over the past year, slower than the 6 percent growth in 2014.

The total value of all homes has regained $5.3 trillion since hitting its lowest point during the housing bust inDecember 2011, but is still $782 billion below the bubble peak value of $29.2 trillion, reached in October 2006.

The dollar amount itself underscores the significance of housing to the U.S. economy. In the third quarter of 2015, the U.S. gross domestic product was $18.1 trillioni, $10 trillion less than the total value of the housing stock.

“This reminds us of the large role housing plays in the overall economy,” said Zillow® Chief Economist Dr. Svenja Gudell. “Total home value growth slowed this year, but there was still a significant increase in overall value, and many markets are more valuable than they’ve ever been. At the same time, more renter households and rising rents combined to set new records in rental spending in 2015. Americans are spending a lot of money on housing, and that will make affordability an important issue next year.”

Housing value isn’t distributed equally across the country. California is home to about 12 percent of the U.S. populationii, but the state accounts for nearly a quarter of the country’s total home value, driven by highly valued markets like Los Angeles and San Francisco.

Total Rent Paid

Americans shelled out nearly $20 billion more in rent in 2015 than in 2014 as people around the country set up 1.8 million new renter households and median monthly rents rose at a record paceiii.  In all, renters spent $535 billion on rent in 2015 – nearly as much as the total budget of the Department of Defense ($575 billion)iv,according to a new Zillow rentals analysis. In 2014, they spent $516 billion.

Renters of single-family homes and apartments spent about the same amount on rent this year, with apartment renters paying $239 billion and single-family home renters paying $245 billion.

Renters in the New York/Northern New Jersey metro area spent the most on rent in 2015 – about $56 billion.Los Angeles-area renters spent nearly $35 billion, and San-Francisco renters spent $17 billion. About two-thirds of the total rent paid in 2015 was spent in the 50 largest metros.

November Real Estate Market Report

Home values rose 3.9 percent annually in November to a Zillow Home Value Indexv of $183,000, according to Zillow’s November Real Estate Market Reportsvi. Denver home values grew fastest for the tenth consecutive month at 15.5 percent annual appreciation. Miami joined Dallas, San Francisco, San Jose, and Portland as other metros seeing double-digit growth.

Rents also continued their steady climb, growing 3.8 percent annually to a Zillow Rent Index of $1,382vii. The pace of rental appreciation has slowed over the past four months. Only San Francisco and Portland saw rents grow at a double-digit pace, as Denver and San Jose slipped back into single-digit growth.

Metropolitan Area

Total Home Value, Year-End 2015

 Total Rent Paid, Year-End 2015

 November Zillow Home Value Index

 November Zillow Rent Index

United States

 $28.5 trillion

 $535.2 billion

$183,000

$1,382

New York/Northern New Jersey

 $2.3 trillion

 $55.9 billion

$380,600

$2,371

Los Angeles-Long Beach-Anaheim, CA

 $2.4 trillion

 $34.5 billion

$552,000

$2,488

Chicago, IL

 $741 billion

 $16.5 billion

$192,200

$1,637

Dallas-Fort Worth, TX

 $411 billion

 $12.8 billion

$175,600

$1,496

Philadelphia, PA

 $567 billion

 $9.8 billion

$202,700

$1,558

Houston, TX

 $381 billion

 $13.1 billion

$169,100

$1,578

Washington, DC

 $939 billion

 $14.0 billion

$357,200

$2,110

Miami-Fort Lauderdale, FL

 $773 billion

 $11.2 billion

$224,900

$1,817

Atlanta, GA

 $383 billion

 $8.8 billion

$159,600

$1,275

Boston, MA

 $634 billion

 $13.4 billion

$381,700

$2,245

San Francisco, CA

 $1.2 trillion

 $16.7 billion

$781,900

$3,325

Detroit, MI

 $271 billion

 $6.9 billion

$121,300

$1,131

Riverside, CA

 $417 billion

 $8.0 billion

$296,500

$1,689

Phoenix, AZ

 $421 billion

 $7.9 billion

$214,000

$1,248

Seattle, WA

 $506 billion

 $10.2 billion

$366,000

$1,922

Minneapolis-St Paul, MN

 $307 billion

 $2.7 billion

$214,000

$1,503

San Diego, CA

 $574 billion

 $9.4 billion

$496,600

$2,313

St. Louis, MO

 $181 billion

 $3.0 billion

$140,400

$1,121

Tampa, FL

 $232 billion

 $5.2 billion

$159,100

$1,293

Baltimore, MD

 $274 billion

 $5.8 billion

$241,800

$1,716

Denver, CO

 $347 billion

 $5.8 billion

$318,000

$1,952

Pittsburgh, PA

 $141 billion

 $2.8 billion

$126,200

$1,092

Portland, OR

 $252 billion

 $4.2 billion

$306,800

$1,683

Charlotte, NC

 $176 billion

 $3.3 billion

$156,900

$1,222

Sacramento, CA

 $253 billion

 $4.9 billion

$328,500

$1,599

San Antonio, TX

 $113 billion

 $3.3 billion

$147,600

$1,305

Orlando, FL

 $173 billion

 $3.2 billion

$179,800

$1,341

Cincinnati, OH

 $124 billion

 $2.3 billion

$141,600

$1,228

Cleveland, OH

 $113 billion

 $2.7 billion

$124,000

$1,127

Kansas City, MO

 $126 billion

 $2.7 billion

$146,000

$1,194

Las Vegas, NV

 $168 billion

 $4.5 billion

$198,900

$1,213

Columbus, OH

 $125 billion

 $3.0 billion

$150,400

$1,272

Indianapolis, IN

 $110 billion

 $2.6 billion

$129,800

$1,185

San Jose, CA

 $614 billion

 $6.7 billion

$924,000

$3,416

Austin, TX

 $155 billion

 $5.0 billion

$241,200

$1,683

Source:

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

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Barbara Reaume

Barbara Reaume is a real estate expert working for Coldwell Banker Montecito. She started her career as a real estate agent in 1984 and offers over 3 decades of experience in real estate sales. Specialties include Montecito real estate, Santa Barbara real estate, Santa Barbara homes, real estate financing In Santa Barbara, Montecito relocation, Santa Barbara relocation, short sales and foreclosures. Do you have specific questions about buying or selling real estate in the Santa Barbara area? Ask to be setup on Barbara's email-based home search to get instant alerts on price reductions and new Santa Barbara homes for sale in the area. Contact Barbara Reaume by email ([email protected]), phone (805-610-5403) to find out the value of your home, discuss your options. Connect on Google+ https://plus.google.com/103753350598984606081/about

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