In August 2005, the market capitalization of the new home market peaked at $31.05 billion, going by the trailing twelve month average for this figure.
In January 2021, fueled by a surge in demand by Americans fleeing coronavirus pandemic lockdown restrictions and amplified by sustained breakdowns of public order in large cities in the U.S., the market cap of the new home market reached $30.32 billion, just 2.4% shy of the housing market's previous nominal peak.
Since January 2021 however, the trailing twelve month average market cap for new homes in the U.S. has fallen somewhat, dropping to $29.91 billion in the initial estimate for March 2021, as the supply of new homes sold has increased while the average price of new homes sold in the U.S. has dipped from a six-year high in January 2021.
Adjusted for inflation, the market cap for new homes now would have to be over a third higher to come close the August 2005 peak in terms of constant March 2021 U.S. dollars.
References
U.S. Census Bureau. New Residential Sales Historical Data. Houses Sold. [Excel Spreadsheet]. Accessed 24 April 2021.
U.S. Census Bureau. New Residential Sales Historical Data. Median and Average Sale Price of Houses Sold. [Excel Spreadsheet]. Accessed 24 April 2021.
U.S. Department of Labor Bureau of Labor Statistics. Consumer Price Index, All Urban Consumers - (CPI-U), U.S. City Average, All Items, 1982-84=100[Online Application]. Accessed 13 April 2021.
Labels: real estate
Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:
ironman at politicalcalculations
Thanks in advance!
Closing values for previous trading day.
This site is primarily powered by:
CSS Validation
RSS Site Feed
JavaScript
The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.
Other Cool Resources
Blog Roll
