Chicago’s housing market ranks No. 7 in the U.S. in terms of value, according to a new report from Zillow. However, it showed the second-highest year-over-year growth of the 20 metros studied, trailing only Miami-Fort Lauderdale.

As of June 2023, the Chicago housing market was valued at roughly $1.1 billion: an increase of $73.2 from June 2022, or, 6.9%

Meanwhile, the total value of the U.S. housing market jumped to $52 trillion in the past year. That’s $1.1 trillion higher than the previous peak hit in June of 2022 and $2.6 trillion higher year over year. Zillow attributes this surge, in part, to the 0.7% increase in the average value of a U.S. home during the same time period.

However, the major catalyst behind the boost was new construction.

“A steady flow of new homes hit the market this spring and summer, helping chip away at the deep inventory deficit and boosting the total value of the market,” Zillow Senior Economist Orphe Divounguy said in the report. “Despite the presence of higher mortgage rates, which deterred some home shoppers and kept many existing homeowners on the sidelines, enough buyers remained to keep the market moving.

“Builders recognized the unmet demand and responded by starting more projects,” Divounguy continued. “New home sales rose this year while existing home sales fell and should make up a bigger piece of the home sales pie for as long as rates remain elevated.”

SF: Miami’s housing market previously ranked as the ninth-most valuable in the nation in May 2021, with a total value of $1.23 trillion. Since then, the metro has jumped up four spots to No. 5, with its dollar value increasing by 86.6%. Florida was also identified as the second-most valuable state in the country, with statewide real estate values jumping 4.3% since June 2022 to $3.8 trillion.