California’s residential real estate market adds up to $10T

The value of residential real estate across the Golden State has reached more than $10 trillion.

Six of the top 20 cities for valuable housing in June are in California, including San Francisco and San Jose, the San Francisco Chronicle reported, citing a report from Zillow.

The $10.18 trillion value of California homes make up nearly a fifth of the U.S. total $51.9 trillion.

Florida trails at nearly $4 trillion. While California has 77 percent more people than the No. 2 state, California real estate is 150 percent more valuable than Florida’s.

New York came in at $3.6 trillion, now third for the first time, followed by Texas at $3.3 trillion and New Jersey at $1.8 trillion.

California, the most populous state, has the most homes. And they are pricey, with only homes in Hawaii having a higher average value.

“That combination of lots of homes and those homes being very expensive is the reason California’s housing market is the most valuable of any state by far,” a Zillow spokesperson told the Chronicle.

California’s housing market value has dropped 3.3 percent since June of last year, along with home values in some of its largest cities.

Los Angeles, the second most valuable market in the country at $3.7 trillion, stayed roughly the same year-over-year, increasing by 0.1 percent in June. San Francisco, the third most valuable market, was valued at $1.8 trillion, a drop of 8.8 percent.

San Diego was ninth at $994 billion, an increase of 1 percent. San Jose was 11th at $909 billion, which fell 5 percent. Riverside was 14th at $785 billion, down 3 percent. Sacramento was 19th at $482 billion, down 5 percent.

New York City, the most valuable housing market in the nation at $4.2 trillion, saw an increase of 4.2 percent.

The California real estate market, especially in costly cities such as San Francisco, was slammed  by rising mortgage rates, which priced out potential buyers and caused potential sellers to stay in their homes, pushing inventory levels to their lowest in 20 years, according to the Chronicle.

The slow market, combined with a shift to remote work, contributed to price declines in upscale markets such as San Francisco and San Jose.

— Dana Bartholomew

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