By Serj Markarian, Licensed Associate Real Estate Broker
Despite headlines dominated by high interest rates and economic uncertainty, the American housing market continues to demonstrate its long-term resilience—and profitability. According to a recent Realtor.com report, the total value of residential real estate in the U.S. has surged by $3.2 trillion over the past year, reaching a record $47.5 trillion. That’s a 7.2% increase from February 2023 to February 2024, with nearly 60% of that gain driven by the luxury segment.
Equally compelling is the sharp rise in homeowner equity, up $2.8 trillion over the same period. That means Americans who own their homes are sitting on significantly more wealth than they were just a year ago, even as affordability challenges persist for new buyers. It’s a reminder that real estate—particularly ownership—remains one of the most effective ways to build long-term financial security.
Zooming in on New York City, the market reflects similar strength. In April 2025, the median home sold price in New York reached $870,078, marking a 3.2% year-over-year increase. Notably, Queens experienced a 6.0% rise, while Brooklyn and Manhattan saw increases of 2.9% and 2.4%, respectively.
Homeowners in New York have also seen substantial equity gains. In the third quarter of 2024, the average homeowner in the state gained approximately $37,000 in equity, ranking among the highest in the nation.
While affordability remains a real hurdle for first-time buyers, those able to break into the market continue to benefit from rising home values and the equity it generates. Even in a high-rate environment, demand has held steady across many metro areas—a sign that buyers still view homeownership as a sound investment, not just a lifestyle upgrade.
We shall see how these numbers evolve, especially as interest rates begin to moderate. But for now, the data reinforces what many seasoned investors have long known—real estate isn’t just about where you live, it’s a cornerstone of building wealth.
