The total, combined value of all homes nationwide rose by almost $2.5 trillion in 2020 — the most in a single year since 2005 — to a whopping $36.2 trillion.
2020 was a remarkable year for the housing market. Strong demand drove intense competition among buyers, causing homes to fly off the market at the fastest pace Zillow has recorded and pushing prices higher. Housing demand was already strong coming into the year with the large Millennial generation aging into prime first-time home-buying age and mortgage rates hovering near record lows. The widespread shift to remote work during the COVID-19 pandemic prompted many to reevaluate their housing options and supercharged demand. Homeowners forced by the coronavirus pandemic to hole up in their homes for much of the past year are changing a few things about their homes.
For starters, COVID-19 exposed the flaws of the open floor plans touted on HGTV and other design shows—finding a quiet space to jump on that Zoom meeting with the boss while the kids are remote learning a few feet away can be a logistical nightmare. Fewer homeowners created an open-concept floor plan leading into 2021, according to a recent survey from design and remodeling site Houzz. Read more