Remote work fuels $2.4Tn surge in U.S. housing wealth – Redfin
WASHINGTON, UNITED STATES — A recent analysis by real estate brokerage Redfin estimates the total value of U.S. residential properties has increased by $2.4 trillion over the past year to $47.5 trillion.
This 5.3% year-over-year rise marks the largest gain in 11 months, attributed largely to remote work trends still reshaping housing demand.
“America’s homeowners are sitting pretty. They’re holding a massive amount of housing wealth, despite lackluster demand from buyers, because home values skyrocketed during the pandemic and now a supply shortage is preventing those values from falling,” said Redfin Economics Research Lead Chen Zhao.
The shift towards location flexibility has benefited more affordable metro areas that offer savings compared to major cities:
- Newark, New Jersey (12.8% gains or $359.6 billion)
- New Haven, Connecticut (11.9%)
- Camden, New Jersey (10.8%)
- Charleston, South Carolina (10.8%)
- Elgin, Illinois (10.4%)
- Grand Rapids, Michigan (9.8%)
- Milwaukee (9.7%)
“Places like Newark and Camden are likely seeing home values jump in part because they’re attracting demand from people who are priced out of New York and can now work remotely,” the report explained.
“Midwestern metros like Milwaukee and Grand Rapids are experiencing home value gains for a similar reason: They’re affordable, and when mortgage rates and home prices are elevated, demand for affordable homes goes up.”
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Conversely, cities like Boise, Idaho, New York City, New Orleans, and Stockton, California saw declines in home value attributed to their high cost of living or the pandemic-induced influx that previously drove prices up.
“New York, Honolulu, Riverside and Denver all have median home sale prices of at least $550,000—well above the national median of $402,343,” the report said.
“In Boise and Austin, which also have median sale prices above the national level, many people are priced out because an influx of out-of-towners caused home values to skyrocket during the pandemic.”
The $2.4 trillion increase in housing market value signals substantial wealth accumulation for U.S. homeowners. However, persistent unaffordability challenges and constraints for prospective homebuyers point to uneven access and inequality exacerbated by remote work migration patterns.
