The value of U.S. homes hit $25.3 trillion in the fourth quarter of 2015, the Fed reported. That’s $450 billion more than the third quarter. Homes were worth more in the fourth quarter than any time since before the financial meltdown.
And the Fed’s numbers might be conservative, according to a Zillow report. Zillow estimated that U.S. home values grew $1.1 trillion in 2015, reaching a total of $28.5 trillion.
The market isn’t perfect, however. Although the market has made up the $7 trillion lost during the recession, the average home price is still 5% below the peak in 2006. according to a report on ConstructionDive.com. Median household income is also lower than it was in 2000.
And while home values haven’t hit pre-recession peaks yet, spiking home prices are still making it difficult for many would-be homebuyers. Low inventory and high prices are pushing millennials out of the city and into the suburbs in search of affordable homes, ConstructionDive.com reported. And skyrocketing prices in California are actually pushing hundreds of thousands of people to leave the state in search of homes they can afford.
The total value of U.S. homes has hit a level unseen since 2006, according to the Federal Reserve.