SEATTLE, Dec. 30, 2015 /PRNewswire/ -- 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 in December
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
|
Zillow
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.
Zillow and Zestimate are registered trademarks of Zillow,
Inc.
i U.S. Bureau of Economic Analysis
http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
ii According to 2014 U.S. Census estimates
http://quickfacts.census.gov/qfd/states/06000.html
iii To calculate the total rent paid, we estimated
the number of renter households in each metro area based on the
U.S. Census Bureau's 2005 through 2014 American Community Surveys
(ACS), and households counts and metro-level homeownership rates
from the Current Population Survey/Housing Vacancy Survey
(CPS/HVS). ACS microdata files were downloaded from the
University of Minnesota,
IPUMS-USA. We then summed the
monthly Zillow Rental Indexes (ZRI) for each year, including a
forecast for December 2015 ZRI
(Actual December 2015 data were
unavailable at the time of publication). Finally, we took the
product of the estimated number of renter households and the summed
ZRIs for each metro, and scaled the results by a rental stock
adjustment factor, which controls for differences in the footprint
of the rental stock and the total housing stock. The rental stock
adjustment factor was derived from the relationship between ZRI and
monthly contract rents reported in the 2014 ACS for each
geography.
iv http://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2015/FY15_Green_Book.pdf
v The Zillow Home Value Index (ZHVI) is the median
estimated home value for a given geographic area on a given day and
includes the value of all single-family residences, condominiums
and cooperatives, regardless of whether they sold within a given
period. It is expressed in dollars, and seasonally adjusted.
vi The Zillow Real Estate Market Reports are a
monthly overview of the national and local real estate markets. The
reports are compiled by Zillow Real Estate Research. For more
information, visit www.zillow.com/research/. The data in Zillow's
Real Estate Market Reports are aggregated from public sources by a
number of data providers for 928 metropolitan and micropolitan
areas dating back to 1996. Mortgage and home loan data are
typically recorded in each county and publicly available through a
county recorder's office. All current monthly data at the national,
state, metro, city, ZIP code and neighborhood level can be accessed
at www.zillow.com/local-info/ and www.zillow.com/research/data.
vii The Zillow Rent Index (ZRI) is the median Rent
Zestimate® (estimated monthly rental price) for a given
geographic area on a given day, and includes the value of all
single-family residences, condominiums, cooperatives and apartments
in Zillow's database, regardless of whether they are currently
listed for rent. It is expressed in dollars.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/us-home-values-gained-11-trillion-renters-paid-record-535-billion-in-2015-300197779.html
SOURCE Zillow