U.S. Home Values See Biggest Jump in a Year, Affordable Areas Lead Gains

The total value of U.S. homes jumped 5% year-over-year to $47.5 trillion in December, the biggest gain in nearly a year.

Affordable East Coast and Midwest metros saw double-digit home value gains, while expensive areas and pandemic boomtowns saw declines.

A shortage of homes for sale is propping up home values despite sluggish demand from buyers facing high mortgage rates and prices.

Suburban home values grew faster than urban and rural areas over the past year as suburbs remain popular.

Newark, NJ saw the largest home value jump (12.8%) of any major metro area over the last year, largely due to demand from priced-out New Yorkers.