“This reminds us of the large role housing plays in the overall economy,” Zillow Chief Economist Dr. Svenja Gudell said. “Total home value slowed this year, but there was still a significant increase in overall value, and many markets are more valuable than they've ever been.”

According to Zillow's November Real Estate Market Report, home values rose 3.9% annually, to a Zillow Home Value Index of $183,000.

Rental Trends

Rental payments are also increasing, according to Dr. Gudell. In fact, more renter households and rising rents combined to set new records in rental spending in 2015.

“Americans are spending a lot of money on housing, and that will make affordability an important issue next year,” he said.

Americans shelled out nearly $20 billion more in rent in 2015 than in 2014, as people around the country set up 1.8 million new renter households, and median monthly rents rose at a record pace. In all, according to Zillow, renters spent $535 billion on rent in 2015, nearly as much as the total budget of the U.S. Department of Defense (which was $575 billion). In 2014, renters spent $516 billion.

Renters of single-family homes and apartments spent about the same amount on rent this year, with single-family home renters paying $245 billion, and apartment renters paying $239 billion.

Rents continued their steady climb in November, growing 3.8% annually to a Zillow Rent Index of $1,382, although the pace of rental appreciation has slowed over the past four months.