Surged: The American Real Estate Market Amassed an Impressive $20 Trillion Over a Half-Decade Span
In the dynamic world of real estate, the US housing market is currently experiencing a blend of factors that are shaping its trajectory.
Recent findings from Zillow reveal a historically expensive housing market, with values climbing despite elevated mortgage rates. The US housing market's value has soared an impressive $20 trillion since 2020, reaching a record $55 trillion.
However, this upward trend is not uniform across all regions. Sellers in Florida, California, and Texas are offering price cuts or concessions to attract buyers who are increasingly reluctant to pay the same elevated prices they may have paid a few years ago. This trend is mirrored in the reports of real estate agent Sharon Ross in South Florida, who notes a down cycle in the market, with sellers receiving lower offers and increased price cuts or concessions.
The downward shift in the market is partially attributed to an increase in home insurance rates and property taxes in these states, due to their vulnerability to worsening natural disasters fueled by climate change. The cost to insure a home has risen precipitously in Florida, California, and Texas, causing a significant number of buyers to cancel deals after receiving home insurance quotes.
The report from financial services company Intercontinental Exchange found that overall buyer demand has faded, but new home construction has helped prop up housing market values in Sun Belt markets like Florida and Texas. In Texas, more than one-fifth of the market's value gains since 2020 came from newly built homes, the highest share of any state besides Utah.
New York added $216 billion in housing market value in 2025, more than any other state, followed by New Jersey, Illinois, and Pennsylvania. Interestingly, these states followed New York in terms of housing market value gains in 2025.
However, contrary to expectations, pandemic-era boom states Florida, California, and Texas lost billions in their housing markets in 2025. A report from Intercontinental Exchange found that 85% of counties in Florida showed home price declines compared to a year ago, and prices declined in California, Texas, Colorado, and Arizona by more than 3% from post-pandemic highs.
Despite the lack of detailed state-by-state 2025 data in the sources available, the overall U.S. housing price index reached a peak in February 2025, suggesting that while some regions may be experiencing a downturn, the market as a whole remains robust.
In conclusion, the US housing market is showing signs of a cooling demand in certain regions, particularly Florida, California, and Texas, due to factors such as increased home insurance rates and property taxes. However, the market as a whole remains historically expensive and shows signs of resilience, with new home construction helping to prop up values in Sun Belt markets.
