The U.S. housing market continued its upward trajectory in 2024, gaining a total of $2.5 trillion in value to reach $49.7 trillion, according to a new report from Redfin. This 5.2% year-over-year increase represents the slowest annual growth since 2019, reflecting a more stabilized market after years of rapid price surges during the pandemic era.
Home Prices Continue to Rise Amid Increased Supply
Despite a greater number of homes available for sale in many areas, home prices have continued to climb, largely due to strong buyer demand and limited overall inventory. Redfin Economics Research Lead Chen Zhao noted that while some markets have shifted toward buyers, the overall trend remains one of steady appreciation:
“There are more homes for sale right now than in recent years and that has led to buyer’s markets in many areas of the country. That’s good news, but it doesn’t mean homes are getting cheaper—prices continue to tick up each month.”
The total value of the U.S. housing market has more than doubled in the past decade, rising from $23 trillion in 2014 to nearly $50 trillion today. However, seasonal fluctuations remain a factor, with the market peaking at $50.4 trillion in July before dipping slightly in the winter months.
Upstate New York Leads Housing Market Growth
While the U.S. housing market saw modest growth overall, some metro areas experienced significant value appreciation. Upstate New York stood out as the fastest-growing region, with Albany and Rochester leading the way.
- Albany, NY: Home values surged by 11.3%, surpassing the $100 billion mark to reach $110.7 billion.
- Rochester, NY: Home values climbed 11.2% to a total of $124.3 billion.
- Buffalo, NY: Saw an increase of 11%, bringing the total home value to $107.8 billion.
- Newark, NJ: Rose 11.1% to $410.8 billion.
- Hartford, CT: Increased 10.6% to reach $140 billion.
The sharp rise in home values in these regions can be attributed to a persistent shortage of available homes, driving up competition and prices. In fact, Rochester has the lowest housing supply among major U.S. metros, with Albany close behind.
Florida Markets Lag as Supply and Insurance Costs Weigh on Growth
At the other end of the spectrum, Florida’s housing market experienced relatively slow growth, with some metro areas seeing declining values.
- Cape Coral, FL: Home values fell 2.9% to $199.5 billion, the largest decline of any major metro.
- North Port, FL: Dropped 1.1% to $247 billion.
- Honolulu, HI: Declined 0.4% to $279.8 billion.
Other Florida metros, including West Palm Beach (+0.3%) and Tampa (+0.8%), saw only modest gains. The state’s market has been affected by a slowdown in buyer demand due to affordability concerns, an influx of new construction, and rising insurance costs linked to climate risks, including hurricanes that hit the region in October.
San Diego and Seattle Close in on the Trillion-Dollar Club
New York remains the leader among the most valuable housing markets in the U.S., with its real estate market valued at $2.43 trillion after a 9.4% increase in 2024.
San Diego and Seattle are now approaching the exclusive “trillion-dollar club” as home values in these cities continue to grow. If current trends persist, both metros could surpass the $1 trillion mark in 2025.
Millennials Gain a Greater Share of the Market
Millennials have emerged as dominant players in the housing market, now owning over 20% of all U.S. home value. The total value of millennial-owned homes rose 18.8% year over year, reaching $9.7 trillion in Q3 2024.
By contrast:
- Baby Boomers still hold the largest share of the market (41.1%), and their home values increased 5.2% to $19.8 trillion.
- Gen X saw home values rise 4.6% to $14.1 trillion.
- Silent Generation homeowners experienced a decline of 3.7%, reducing their total home value to $4.6 trillion.
Millennials’ growing market share is driven by their status as the largest generational cohort and their increasing financial stability, allowing them to outpace older generations in home purchases.
Rural Home Values Continue to Outpace Urban and Suburban Growth
For the seventh consecutive year, rural home values grew at a faster rate than those in urban or suburban areas.
- Rural home values increased 6.4% year over year to reach $8.1 trillion.
- Suburban home values rose 5.1% to $30.8 trillion.
- Urban home values climbed 4.9% to $10.6 trillion.
With approximately 59 million suburban homes compared to 23 million in urban areas and 22 million in rural areas, the market continues to reflect shifting housing preferences, particularly as remote work and lifestyle changes make rural living more attractive to some buyers.
Looking Ahead: What’s Next for the Housing Market?
While home value growth has slowed compared to previous years, steady demand and constrained inventory suggest prices will continue rising in 2025. The Northeast remains a strong-performing region, while Florida’s challenges could persist due to insurance costs and climate concerns. Meanwhile, millennials are playing an increasingly important role in shaping the future of the market.
For a more in-depth analysis, including metro-specific data and Redfin’s full report, visit Redfin’s Housing Market Report.