Homeowners gained $9.1 trillion in housing value between November 2020 and November 2021, a new report from Redfin found.
U.S. home prices rose 31.4% year-over-year (YOY) to $38.3 trillion in November, with a $2.6 trillion annual increase a year earlier.
The surge in value was propelled by continuing home price appreciation. November was the 16th consecutive month of double-digit price increases. The number of homes for sales reached a record low, adding fuel to the fire.
“The surge in housing values during the pandemic has widened the gap between homeowners and renters in America. Homeowners have seen their wealth increase significantly over the past year, while renters have missed out on those gains and are now grappling with rent inflation,” said Redfin Chief Economist Daryl Fairweather.
More than a quarter of states have experienced a rental price increase of 20% or more in 2021.
“The silver lining is that housing values didn’t just climb in large affluent cities. Homeowners in rural America, who don’t normally see substantial home-value increases, also reaped the benefits of a booming housing market,” Fairweather added.
The value of rural homes rose 46.2% YOY to $4.9 trillion. The value of urban homes rose 31.3% to $8 trillion and the value of suburban homes increased 25.9% to $24.1 trillion.
Condos values rose 42.7% to $5.1 trillion. The value of single-family homes rose 30.1% to $32 trillion and the value of townhouses saw an increase of 20.6% to $1.2 trillion.
Values saw the largest increases in “migration hot spots” such as Austin and Phoenix. Austin’s home values jumped 48.1% year over year to $389.5 billion in November—the largest gain among the 50 largest metros– followed by Jacksonville, FL (39.9%) and Phoenix (38.3%).
Millennial homeowners saw the largest increases in home value by percentage, a good sign for a generation that some fear are at risk of becoming house-rich and cash-poor.
The value of homes owned by millennials grew 34.3% YOY, by $1.2 trillion to a total of $4.6 trillion.
For Gen X, home values rose 20% to $11.9 trillion. Baby boomers saw an increase of 11.9% to $15.9 trillion.
In contrast, the value of homes owned by the Silent Generation fell 1.7% ($76.3 billion) to $4.4 trillion. The report contributes this decline to older Americans downsizing or moving into retirement homes.