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Boston’s housing market saw a $3 billion drop in valuation year-over-year in July while still being a top market in the country.

Greater Boston’s homes are collectively worth $1.32 trillion, one of nine total markets that are valued over $1 trillion, according to a new Zillow analysis. Homes in the state’s other markets, combined, were worth $534 billion.

The entire housing market in Massachusetts is worth $1.85 trillion, an increase of $46 billion year-over-year. Since 2020, the housing market in Massachusetts has grown by $652 billion. Between July 2024 and July 2025, the state’s market value grew by $4 billion.

“Even as buyers struggled with rising costs, U.S. housing wealth kept climbing,” Orphe Divounguy, senior economist at Zillow, said in a statement. “New construction opened the door for many first-time homeowners, creating trillions in wealth that didn’t exist five years ago. Home value gains are a windfall for longtime homeowners, but they also highlight how housing deficits that sent prices soaring left behind many aspiring first-time buyers. The bottom line is that we need more homes to solve our chronic affordability crisis.”

Elsewhere in New England, the Connecticut market is valued at $708 billion, a $43 billion increase on a year-over-year basis. Since 2020, the market has grown by $296 billion.

Homes in the United States are now worth a record $55.1 trillion, a $20 trillion increase since 2020. Over the last year, the country’s housing market grew by $862 billion. Out of the nation’s trillion-dollar markets, New York City was the only market to experience significant gains. The other eight trillion-dollar markets lost $18 billion on a year-over-year basis.