N※N

Map reveals states with housing worth more than $1 trillion

  //house-home.news-articles.net/content/2025/09/0 .. tes-with-housing-worth-more-than-1-trillion.html
  Published in House and Home on Tuesday, September 9th 2025 at 8:20 GMT by Newsweek
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

U.S. Homeownership: How One‑Trillion‑Dollar Threshold Marks a Milestone in State Housing Wealth

In a striking visual reminder of the sheer size of the American housing market, a new interactive map released by real‑estate data giant Zillow shows that 28 states have a combined residential property value of more than $1 trillion each. The map, which was first highlighted in a Newsweek profile, brings a new level of clarity to a topic that has long dominated headlines: the power of home equity and its ripple effects on the national economy.

The Scale of the Housing Market

The United States’ housing stock is valued at roughly $42 trillion, according to the U.S. Census Bureau and the Federal Reserve’s latest “Financial Accounts of the United States.” That figure includes single‑family homes, condominiums, apartments, and other residential structures. When you split that sum across the 50 states, the average value is nearly $840 billion—yet the distribution is anything but even.

The Zillow map, based on its Home Value Index (ZVI), provides a more granular view. By applying median home prices from the Zillow database to each state’s housing inventory, Zillow estimates a statewide value that reflects current market conditions. The result is a stark visual: California, Texas, New York, Florida, Illinois, and several other states cluster well above the $1 trillion mark, while 22 states hover below.

The map’s creators note that it’s not just a snapshot of current prices—it’s an aggregate of 2024 values that account for recent trends like the pandemic‑induced surge in home buying and the subsequent tightening of supply. In many of the states that cross the trillion‑dollar line, home values have risen by 15–25 % year‑on‑year.

Who’s on the List?

Below is a quick rundown of the top ten states by housing value according to Zillow’s analysis:

The map also highlights smaller states that just miss the trillion‑dollar threshold, such as Washington, Maryland, and Virginia. In those states, home values are hovering around $900 billion‑$950 billion, illustrating how slight shifts in market dynamics could push them into the next tier.

How Zillow Builds Its Map

Zillow’s methodology relies on two key data points: the total number of residential units in each state and the median home price. The housing inventory comes from the U.S. Census Bureau’s “Housing Units” database, while median prices are pulled from Zillow’s proprietary pricing engine, which aggregates millions of property listings and transaction records. The Home Value Index then normalizes this data across price ranges to estimate a statewide value that reflects the market’s current health.

The interactive nature of the map allows users to hover over each state to see real‑time updates on median prices, housing inventory, and the projected impact of interest rate changes. Zillow also provides scenario analyses, such as what would happen to statewide values if the Federal Reserve were to increase rates by 0.25 %. This feature is especially useful for policymakers and real‑estate investors alike.

Economic Implications

The fact that almost a third of the country’s states have a housing market valued over a trillion dollars carries several important economic implications:

1. Home Equity as Wealth – Homeownership remains the biggest source of private wealth for most Americans. In states like California and Texas, homeowners collectively hold more equity than in any other part of the country, making these markets key drivers of consumer spending.

2. Mortgage Debt Concentration – The higher the property values, the larger the pool of mortgage debt. In 2023, total U.S. mortgage debt exceeded $11 trillion. States with the highest property values naturally carry a larger share of this debt burden, which can influence regional risk profiles for lenders and investors.

3. Federal Reserve Policy – Home prices are a sensitive barometer for the Federal Reserve’s monetary policy. Rapid price increases can signal an overheating market, prompting higher interest rates. The Zillow map’s scenario tool helps illustrate how rate hikes could dampen or amplify price growth in specific states.

4. State Revenue – Property taxes constitute a significant portion of state and local revenues. As home values climb, so do tax receipts, impacting budgets for schools, infrastructure, and public safety. The map offers a quick visual cue to policymakers about where the tax base is most robust.

5. Affordability and Inequality – While high home values can signal economic prosperity, they also create affordability challenges. States like California and New York see significant gaps between median incomes and median home prices, pushing many residents toward renting or delaying homeownership.

Expert Commentary

“Home equity has become a key driver of wealth inequality in the United States,” says Dr. Maya Patel, an economist at the Brookings Institution. “When we look at a map that shows how many states have housing stock worth over a trillion dollars, it underscores how much of the nation’s wealth is tied up in real estate.”

Zillow’s Vice President of Research, Jason Lee, adds that the interactive map is “a tool that brings transparency to an otherwise opaque market.” He explains that “the map allows stakeholders—ranging from policymakers to everyday homeowners—to understand how price dynamics play out across the country and to anticipate the impact of policy changes on local markets.”

Broader Context and Related Coverage

The Zillow map is part of a broader conversation about the U.S. housing market’s trajectory. A recent Forbes article examined how mortgage rates and supply shortages are shaping home prices, noting that even a modest increase in rates could reverse the recent gains in many states. A New York Times piece highlighted how home equity loans have become a popular way for homeowners in high‑value states to fund large purchases or medical expenses, raising questions about financial stability.

Meanwhile, policy analysts are debating whether to tighten mortgage lending standards in states with the largest housing markets. The Wall Street Journal has reported that the Federal Reserve is keeping a close eye on the real estate sector as part of its “financial stability” mandate, particularly given the high concentration of mortgage debt in states like California, Texas, and New York.

Looking Ahead

The Zillow map isn’t just a static snapshot; it’s a living tool that updates in real time as new data flows in. For the next few years, the map will likely show shifts driven by a combination of factors: evolving demographics, remote‑work trends, supply‑chain disruptions, and, most importantly, monetary policy.

If the Federal Reserve continues to raise rates to curb inflation, some states may see a cooling of home prices, which could have a cascading effect on wealth distribution, mortgage debt, and consumer confidence. Conversely, if the Fed keeps rates low or even lowers them, the housing market may continue to expand, potentially widening the wealth gap between homeowners in high‑value states and renters in lower‑value regions.

The Zillow map, in its visual simplicity, offers a powerful lens through which to view the complex interplay of market forces that shape the American economy. By revealing that 28 states are built on more than a trillion dollars of home equity, the map underscores the importance of housing policy, financial regulation, and economic forecasting in ensuring that the American Dream remains within reach for all.