Florida surpassed New York in home values and ranked second in the U.S. housing market.

The total value of housing in the United States rose by more than $2.6 trillion over the past year, contradicting predictions of a prolonged recession due to rising borrowing costs. That follows a new study by Zillow, which also found that Florida surpassed New York to become the second most expensive U.S. state for housing.

The gains are not evenly distributed across the country, however. In California, which makes up about a fifth of the U.S. housing market, prices have fallen since June 2022.

"Despite rising mortgage rates discouraging some buyers'housing and kept many existing owners from selling, enough buyers remained to keep the market moving,' wrote Orfe Divungi, senior economist at Zillow.

The real estate boom in Florida has propelled Miami to the fifth position in the ranking of the largest U.S. metropolitan housing market, up from ninth place in May 2021 and ahead of the nation's capital, Washington, D.C., and other cities. Home values in Miami have risen by more than 80% since the pandemic began, while property prices in Tampa and Jacksonville have also risen, and Orlando posted a gain of more than 70%. The state's significant population growth is one reason prices in Florida are rising so quickly, according to Zillow.