Redfin has found that the total value of U.S. homes was $45.3 trillion at the end of 2022, down 4.9 percent (or $2.3 trillion) from a record high of $47.7 trillion in June of last year. That’s the largest June-to-December drop in percentage terms since 2008.
While the total value of U.S. homes was up 6.5 percent from a year earlier in December, Redfin notes that it is the smallest year-over-year increase during any month since August 2020.
“The housing market has shed some of its value, but most homeowners will still reap big rewards from the pandemic housing boom,” said Redfin Economics Research Lead Chen Zhao. “The total value of U.S. homes remains roughly $13 trillion higher than it was in February 2020, the month before the coronavirus was declared a pandemic.
“Unfortunately, a lot of people were left behind,” Zhao continued. “Many Americans couldn’t afford to buy homes even when mortgage rates hit rock bottom in 2021, which means they missed out on a significant wealth building opportunity.”
The Bay Area housing market, in particular, has lost more value in percentage terms than anywhere else in the country. According to Redfin, the total value of San Francisco homes fell 6.7 percent year-over-year to $517.5 billion in December (a $37.3 billion decline). Oakland and San Jose followed, down 4.5 percent and 3.2 percent, respectively.
Suburbs, Redfin notes, are faring better than cities. The total value of homes in American suburbs rose 6.4 percent year-over-year to $25.4 trillion in December. By comparison, the value of urban homes climbed 2.5 percent to $10.8 trillion. Rural homes—which make up a relatively small portion of the housing market—also fared better than cities, with total home value increasing 8.5 percent to $6.2 trillion.