America's housing market now worth $55 trillion — after growing 57% in just 5 years. How to still find a deal

If you’ve been saving for a down payment for a house over the past few years, you may have noticed that the goal posts seem to be moving. You’re not imagining things: America’s housing market is supercharged, with prices reaching historic heights.

According to Zillow, in June 2025 America’s housing market hit a record value of $55.1 trillion, with a staggering $20-trillion (57%) increase since 2020 [1].

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The gains in 2025 have slowed from the breakneck pace seen between 2020 and 2022, however, and U.S. housing wealth has increased 1.6% over the past year.

An uneven picture across the country

Growth hasn’t been spread evenly across the country. The Northeast has seen a surge this year, including New York, New Jersey, Pennsylvania and Illinois. New York’s $216-billion growth in one year accounted for a quarter of total U.S. growth.

Meanwhile, Florida, Texas and California, which saw massive gains at the start of the decade, have seen their housing markets cool significantly. This may be due in part to an increase in the cost of both home insurance and property taxes. Climate-change fueled natural disasters have had a major impact on insurance rates in the U.S. [2].

Along with soaring prices, mortgage rates have climbed since the lows seen amid the pandemic. According to a report by the Consumer Financial Protection Bureaun, inJanuary 2021, rates sat at 2.65%, then peaking at 7.79% in October 2023. By September 2024, mortgage rates were at 6.2%, , and as of Sept. 18 this year, the average rate on a 30-year U.S. mortgage was 6.26%..

New York’s hot market has seen demand outstrip supply, with CNN reporting that housing inventory there is half what it was before the pandemic [3]. The story is different in the Sun Belt, where new construction has accounted for market gains, especially in Florida, Texas and Utah. According to the CNN report, new builds in these markets have created “pockets of affordability,” allowing first-time buyers to get into the market.

According to Zillow’s home value index, as of July 31, the median sale price for a home in the U.S. was $373,333, while the average home value, as of Aug. 31, was $363,505 [4].

Story Continues

Data from the Federal Reserve Bank of St. Louis puts the median sales price for new single-family houses sold in the U.S. in the second quarter of 2025 at $410,800. New home prices vary widely by region, however, with the Q2 median sales price for new homes in the Northeast at $796,700. In the Midwest, it was $385,300, in the South, it was $372,100, and in the West the median sales price for new homes was $531,100.

An Associated Press report from July notes that the housing market in the U.S. has been in a slump since early 2022, and that the spring 2025 home-buying season was “sluggish” [5]. It paints a picture that anyone looking to buy a home will recognize: high prices coupled with high mortgage rates. The report notes those who can afford mortgage rates, or who can pay in cash, are benefiting from an increase in properties on the market.

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Is it time to buy?

Would-be home buyers face a tough decision in this market.

Some experts may argue that, amid high inventory, some buyers could take advantage, as homes are lingering on the market. However, it means being able to afford higher mortgage rates; buyers who are thinking of taking the leap now should weigh whether any price cuts outweigh what the total cost of a home over the term of a mortgage could be.

Inventory of homes for sale is one indicator of the market. The AP report notes that “a 5- to 6-month supply is considered a balanced market between buyers and sellers.”

Data from Realtor.com for August suggest that while inventory has grown for almost two years straight, that supply recovery has now slowed down [6]. The South and West have had the biggest gains in inventory, with smaller gains in the Northeast and Midwest.

While some sellers are feeling the pressure, with Realtor.com finding price cuts for 20.3% of listings, sellers are increasingly taking their homes off the market. There was a 57% increase in delistings year over year in July, with the report saying this is “a sign that many frustrated homeowners are pulling back instead of meeting buyers where they are.”

Is it time to buy? In some areas, the market has shifted toward being a buyers’ market. Realtor.com data show that in metro areas where inventory supply was at six months or more in June, there were price drops in August. Conversely, there was price growth in metros where there was less than four months’ supply.

But another major factor for buyers is mortgage rates. The AP reports that economists expect rates to stay near the mid-6% range this year. After its recent quarter-point rate cut, the Federal Reserve signaled that more cuts could be coming [7]. For buyers who worry that they can’t afford current rates, waiting to see how low they go might be the best — or only — option.

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[1]. Zillow. “U.S. housing market value hits $55.1 trillion”

[2]. The Conversation. “Why home insurance rates are rising fast across the US – climate change plays a big role”

[3]. CNN. “America’s housing market gained $20,000,000,000,000 in 5 years”

[4]. Zillow. “United States housing market”

[5]. The Associated Press, “US home sales fade in June as national median sales price hits an all-time high of $435,300”

[6.]. Realtor.com. “August 2025 monthly housing market trends report”

[7]. CNBC. “Fed cuts will ‘take a bite out of savings,’ CFP says. But there’s still time to lock in higher rates”

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