Housing Bubble 2.0: U.S. Homeowners Made $2 Trillion On Their Houses In 2017

Americans who are lucky enough to own their own little slice of the 'American Dream' are about $2 trillion wealthier this year courtesy of Janet Yellen's efforts to recreate all the same asset bubbles that Alan Greenspan first blew in the early 2000's.  After surging 6.5% in 2017, the highest pace in 4 years according to Zillow data, the total market value of homes in the United States reached a staggering all-time high of $31.8 trillion at the end of 2017...or roughly 1.5x the total GDP of the United States.

If you add the value of all the homes in the United States together, you get a sum that’s a lot to get your mind around: $31.8 trillion.

How big is that? It’s more than 1.5 times the Gross Domestic Product of the United States and approaching three times that of China.

Altogether, homes in the Los Angeles metro area are worth $2.7 trillion, more than the United Kingdom’s GDP. That’s before this luxury home on steroids hits the market.

In the New York City metro, total home values equal $2.6 trillion, more than the French economy — and enough money to buy 8,494 Boeing 787-10 Dreamliners.

And here is a look at the "Housing Bubble 2.0" on a state-by-state basis:

Ironically, among the 35 largest U.S. housing markets, the one to experience the greatest total home value growth happened to be Columbus, Ohio, which gained 15.1% to $152.3 billion.

Meanwhile, the millions of Americans who have been forced into renting following their short sales or foreclosures in the wake of the last housing bubble, threw a record $485.6 billion dollars down the drain in 2017 on rent, an increase of $4.9 billion from 2016. Not surprisingly, folks in New York and Los Angeles spent the most on rent in 2017 while San Francisco rents soared to such high levels that renters collectively paid $616 million more in rent than Chicago renters did, despite there being 467,000 fewer renters in San Francisco than in Chicago.

Of course, as we pointed out at the end of November, while staggering, the pricing gains on housing only look to just now be heating up...

As the latest housing data shows an uptick in sales, Case-Shiller's 20-City Composite index surged 6.19% YoY in September - the fastest rate of gain since July 2014.

As Bloomberg notes, the residential real-estate market is benefiting from steady demand backed by a strong job market and low mortgage rates. The ongoing scarcity of available houses on the market, especially previously-owned dwellings, is likely to keep driving up prices.

Eight cities have surpassed their peaks from before the financial crisis, according to the report.

All 20 cities in the index showed year-over-year gains, led by a 12.9 percent increase in Seattle and a 9 percent advance in Las Vegas (slowest gains in Washington area at 3.1 percent, Chicago at 3.9 percent)

Luckily, American's are too 'smart' to get crushed by another housing crash this cycle...no, this time around they're not taking any chances and are instead taking all their equity out of their  homes to buy Bitcoin...which is a genius plan if we understand it correctly.


greenskeeper carl MGTOW_MONERO_XMR Thu, 12/28/2017 - 20:12 Permalink

Its not the raw number that should alarm people, its the rate at which it's risen, and that it's greater than before the crash. I haven't seen much change in my home's value in the last few years, so hopefully that means it won't nosedive as bad. I bought this house because I wanted to live in it for a long time, not to flip for money, but shit happens in this world, so it would be nice to know that worse case scenario I can at least get enough for it to walk away clean if need be.

In reply to by MGTOW_MONERO_XMR

HRH of Aquitaine 2.0 greenskeeper carl Fri, 12/29/2017 - 00:39 Permalink

I live in a suburb that is far enough away from one two major cities to still be affordable. The price still hasn't increased to 2007 levels. I saw the price paid by the original owner of my home and I am pretty sure mine is still under that price level, sadly. Still thinking about making my place into a rental while I live in a Class C or Class B RV for a year or two.

In reply to by greenskeeper carl

Not if_ But When Cabreado Fri, 12/29/2017 - 17:11 Permalink

I know what you mean.  But I don't see anywhere near the same volume of bundled MBS stuff going on now.  Like 2004-06ish when the rating agencies were declaring packages of shit quality mortgage derivatives to be AAA investment grade because everyone was looking for these securities to "invest" in (plus they didn't want to lose business by accurately rating them).            CPL 593H

In reply to by Cabreado

PrintCash Thu, 12/28/2017 - 19:47 Permalink

Actually, the only ones that are richer (except for those that sold their house......although they most likely bought a bigger more expensive house) are the localities that impose property tax based on increased value.  

itstippy Thu, 12/28/2017 - 19:48 Permalink

The house hunter and house flipper shows are back in full force too.  Mrs. Tippy loves them; they're on the TV at our house constantly.  I don't understand the appeal, but they're better than "reality TV" shows.

The TV is just background noise for me, as I'm generally reading or surfing my favorite internet sites.  At least the house shows are quiet.  The drama queens on "Real Housewives Of Hazzard County" are always shrieking at each other.  Extremely annoying.

new game itstippy Thu, 12/28/2017 - 20:24 Permalink

well, at least the equity increased twice as much as our next and last home will cost. home hedging. location hedging too. but, i have noticed i am not alone in these thoughts. the goal is no debt upon one last move. some cities i've had on my radar are being found by like mind boomers...

somewhere off the beaten trail...

In reply to by itstippy

Giant Meteor itstippy Thu, 12/28/2017 - 21:01 Permalink

Hmmm, you just described my particular situation to a T .. Mrs Meteor likes the same stuff as your Mrs ..
".... At least the house shows are quiet." Aside from all the sawing and hammering, and yahoo crap, which frankly I get enough of in real life. Then there is all that annoying "house hunter" whining, the unrealistic expectations where money is definitely an object ... No no, I want beach access AND a mountain view .. shit like that. Ooooooh the bathroom is sooooo dated ...

Ear plugs work well .... for the Background noise

In reply to by itstippy

warsev Thu, 12/28/2017 - 20:25 Permalink

Yeah, maybe somewhere. Here in Phoenix single family home prices are still down over 25% from the 2007 highs ignoring inflation. Taking the CPI into consideration, home values are down 40% from 2007.

Common_Cents22 Thu, 12/28/2017 - 21:06 Permalink

i have a 3/4 acre vacant home build lot on a nice lake in a metro area, its worth nearly 3/4 mil now.   time to sell!!!  this stuff is getting very frothy and crazy.

StreetObserver Thu, 12/28/2017 - 23:12 Permalink

"Bombshell" = "Bullshit"

Add "Bombshell" to "Groovy", "Bitchin'", "23 Skidoo", "Dynomite!"

it's an outdated term that seems to be used by lower intelligence people on the right who target high school drop outs with their material.


Blankfuck Fri, 12/29/2017 - 00:36 Permalink

Nasty FED FUCKER BANKSTERS AT IT AGAIN! Well they had to bail the FUCKERS since there were so many foreclosures! Still are around by me. THE FED RESERVE FUCKERS CREATED THIS FALSE ECONOMY.  It will fail again. THIS IS A FUN RIDE FOR NOW.  I see the USA may need to start that war to kickstart the economy further. Seems to me they want the FARCE MARKET to run further, 50,000?

Davidduke2000 Fri, 12/29/2017 - 02:44 Permalink

they can only make money if their homes are fully paid, otherwise the rug could be puller from under them anytime. somehow the writer forgot to mention that plus value can turn to negative value in a very short time.

No More Bubbles Fri, 12/29/2017 - 12:30 Permalink

NO ONE "MADE" anything.  It's all fake "value" that will vanish much faster than it appeared.  Does no one have any memory from just a decade ago?


Maybe now that everyone is "rich" with Real Estate and the Farce called the "Stock Market"  -  Everyone can retire soon.  What could possibly go wrong?  LMAO!

DEMIZEN Fri, 12/29/2017 - 16:08 Permalink

the money pumped into sawdust shitboxes will eventually bring down the whole financial system. there is just not enough bearing mexicans to buy that retarded white bubble, but everything is possible if we dream with the money printer on.

we are out. fuck the pursuit of happiness. future will tell if the timing was right.


Common_Cents22 Fri, 12/29/2017 - 16:38 Permalink

nobody "MADE" anything unless they cashed out and sold.   Only a few will have done that.  the rest will ride it right back down.   

I am cashing out now, just put some property up for sale.