In the second half of 2022, the total value of residential homes in the United States decreased by $2.3 trillion, or 4.9%, to $45.3 trillion, according to a report by real estate broker Redfin Corp.
The drop was a record since 2008, when the financial crisis was raging in the country. The main reason for such a sharp reduction was the increase in mortgage rates, which put pressure on the demand for real estate.
San Francisco was the hardest hit – the value of residential real estate assets in the city fell by 6.7%, to $517.5 billion at the end of 2022. At the same time, in Miami, the indicator soared by 19.7% to $468.5 billion.
Redfin notes that even taking into account the recent decline, the cost of housing in the United States has increased by about $13 billion during the pandemic, that is, since February 2020.