U.S. housing market grew by 5.2% in 2024, adding $2.5 trillion in value

Posted on February 21, 2025   |  

U.S. home values rose by $2.5 trillion in 2024, reaching $49.7 trillion, a 5.2% increase from last year, the slowest growth since 2019 and the second-slowest since 2011. 

The market peaked at $50.4 trillion in July before dipping due to seasonal trends.

Albany and Rochester saw the highest home value increases among major U.S. cities, Albany’s home value grew by 11.3% to $110.7 billion, while Rochester’s rose by 11.2% to $124.3 billion. 

Cape Coral, FL, had the biggest drop, with home values falling 2.9% to $199.5 billion. 

Florida’s housing market struggled as new construction increased supply, while rising insurance costs from hurricanes made homes more expensive.

Millennials now own over 20% of U.S. homes, with their total home value increasing by 18.8% in a year to $9.7 trillion in Q3 2024. 

Baby boomers still own the most, holding 41.1% of the market, with their home values rising 5.2% to $19.8 trillion.

Rural home values grew 6.4% to $8.1 trillion, increasing faster than urban and suburban areas for the 7th year in a row. 

Urban home values rose 4.9% to $10.6 trillion, while suburban home values increased 5.1% to $30.8 trillion.

The U.S. housing market follows a seasonal trend where home values usually rise between March and September and drop in the winter months. 

Florida’s housing market faced extra challenges from major hurricanes in October, which raised insurance costs and added to climate-related concerns, making homes less affordable.