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Staggering Sum: The Enormous Value of Homes in the Nation's Largest Metros

CEO Khai Intela
What comes to mind when you think about expensive real estate? The price of a single house? Well, try wrapping your head around this: the total value of homes in a specific area. LendingTree has...

What comes to mind when you think about expensive real estate? The price of a single house? Well, try wrapping your head around this: the total value of homes in a specific area. LendingTree has analyzed data from the U.S. Census Bureau and found that the total value of owner-occupied housing units in the nation's 50 largest metropolitan areas is an astounding $23.48 trillion. That's right, trillion with a "t"!

Key Findings

Let's dive into some key findings from the analysis:

  • Rapid Growth: The figure of $23.48 trillion represents a massive 38% increase from $17.02 trillion in 2019.
  • Dominance of Large Metros: The value of homes in the nation's 50 largest metros accounts for a whopping 64.1% of the total value of homes across the entire United States, which stands at $36.60 trillion.
  • The Powerhouses: New York, Los Angeles, and San Francisco take the lead in terms of total home values. New York's homes alone are valued at $2.75 trillion, followed by Los Angeles at $2.31 trillion, and San Francisco at $1.39 trillion. Washington, D.C., also joins the trillion-dollar club with $1.01 trillion in total home value.
  • The Underdogs: On the other end of the spectrum, Memphis, Birmingham, and Buffalo have relatively lower total home values ($88.4 billion, $90.4 billion, and $93.1 billion, respectively), but they are still substantial in their own right. Oklahoma City falls just below the $100 billion mark with a total value of $96.2 billion.
  • Mortgaged Homes Take the Lead: The total value of homes with a mortgage is $15.83 trillion, which is $8.18 trillion higher than homes without a mortgage. This difference can be attributed to the larger number of owner-occupied homes with a mortgage in these metros.

Highest Value Metros

Let's take a closer look at the metros with the highest total value of owner-occupied homes:

No. 1: New York, N.Y.

  • Total value of all owner-occupied housing units: $2.75 trillion
  • Total value of owner-occupied housing units with a mortgage: $1.69 trillion
  • Total value of owner-occupied housing units without a mortgage: $1.05 trillion
  • Median home value: $578,800
  • % growth in total value from 2019 to 2022: 20.8%

No. 2: Los Angeles

  • Total value of all owner-occupied housing units: $2.31 trillion
  • Total value of owner-occupied housing units with a mortgage: $1.59 trillion
  • Total value of owner-occupied housing units without a mortgage: $717.8 billion
  • Median home value: $847,400
  • % growth in total value from 2019 to 2022: 30.0%

No. 3: San Francisco

  • Total value of all owner-occupied housing units: $1.39 trillion
  • Total value of owner-occupied housing units with a mortgage: $962.1 billion
  • Total value of owner-occupied housing units without a mortgage: $423.3 billion
  • Median home value: $1,135,500
  • % growth in total value from 2019 to 2022: 30.7%

New York City Caption: The Big Apple, New York City

Lowest Value Metros

Let's now explore the metros with the lowest total value of owner-occupied homes:

No. 1: Memphis, Tenn.

  • Total value of all owner-occupied housing units: $88.4 billion
  • Total value of owner-occupied housing units with a mortgage: $60.1 billion
  • Total value of owner-occupied housing units without a mortgage: $28.3 billion
  • Median home value: $244,100
  • % growth in total value from 2019 to 2022: 41.7%

No. 2: Birmingham, Ala.

  • Total value of all owner-occupied housing units: $90.4 billion
  • Total value of owner-occupied housing units with a mortgage: $59.8 billion
  • Total value of owner-occupied housing units without a mortgage: $30.6 billion
  • Median home value: $247,500
  • % growth in total value from 2019 to 2022: 35.8%

No. 3: Buffalo, N.Y.

  • Total value of all owner-occupied housing units: $93.1 billion
  • Total value of owner-occupied housing units with a mortgage: $54.4 billion
  • Total value of owner-occupied housing units without a mortgage: $38.6 billion
  • Median home value: $219,300
  • % growth in total value from 2019 to 2022: 47.1%

Buffalo, NY Caption: Buffalo, New York

The Surging Real Estate Market

It's astonishing how the value of real estate has skyrocketed in recent years. Between 2019 and 2022, the total value of owner-occupied housing units in the U.S. jumped by about 39.7% (over $10 trillion). This rapid growth can be attributed to a combination of factors.

During this period, low interest rates fueled demand for housing, resulting in a surge in prices. However, supply chain disruptions and labor shortages hampered new construction, exacerbating the shortage of available homes and further driving up prices.

Although interest rates have since risen and supply chain issues have improved, the home price gains seen during the height of the pandemic have remained. As a result, Americans collectively hold an impressive amount of total real estate value, even in the face of a slower housing market.

Tips for Preserving and Increasing Home Value

While macroeconomic factors can influence the price of your home beyond your control, there are steps you can take to protect and enhance its value:

  1. Regular Maintenance: Stay on top of routine maintenance to prevent your home from falling into disrepair. Neglecting maintenance can lead to a drop in value and potential safety issues.

  2. Renovate and Remodel: Consider renovating high-traffic areas such as kitchens or bathrooms to make your home more appealing to potential buyers and increase its value. If you have built up equity, a home equity loan can help finance larger renovations. Even if you're not planning to sell, remodeling can improve your quality of life.

  3. Embrace Green Solutions: Make energy-efficient upgrades such as replacing windows, adding insulation, or installing solar panels. These improvements can save you money on utility bills and add value to your home, as energy-efficient homes tend to sell for more.

Methodology

LendingTree analyzed data from the U.S. Census Bureau's 2022 American Community Survey and 2019 American Community Survey to determine the aggregate value of owner-occupied housing units in the 50 largest metropolitan statistical areas. The analysis includes homes with any type of mortgage, including second mortgages.

In conclusion, the staggering value of owner-occupied homes in the nation's largest metros highlights the immense wealth tied up in real estate. Whether you're a homeowner or simply curious about the housing market, these figures provide a fascinating insight into the value of homes across the United States.

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