SEATTLE, Nov. 22, 2016 /PRNewswire/ -- In 2017,
recent trends will reverse course as the housing market's economic
recovery enters a new stage. Renting will become more affordable,
more Americans will drive to work, and the homeownership rate will
bounce back from historical lows.
Millennials will play a significant role in increasing the
homeownership rate. Nearly half of all buyers in 2016 were
first-time buyers, and millennials made up over half of this group
of buyers.
Here is Zillow's look ahead at the 2017 housing
market:
Zillow's 2017 Predictions
- Cities will focus on denser development of smaller homes close
to public transit and urban centers.
- More millennials will become homeowners, driving up the
homeownership rate. Millennials are also more racially diverse, so
more homeowners will be people of color, reflecting the changing
demographics of the United
States.
- Rental affordability will improve as incomes rise and growth in
rents slows.
- Buyers of new homes will have to spend more as builders cover
the cost of rising construction wages, driven even higher in 2017
by continued labor shortages, which could be worsened by tougher
immigration policies under President-elect Trump.
- The percentage of people who drive to work will rise for the
first time in a decade as homeowners move further into the suburbs
seeking affordable housing – putting them further from adequate
public transit options.
- Home values will grow 3.6 percent in 2017, according to more
than 100 economic and housing experts surveyed in the latest Zillow
Home Price Expectations Survey. National home values have risen 4.8
percent so far in 2016.
Statement from Zillow Chief Economist Dr. Svenja Gudell:
"There are pros and cons to both existing homes and new
construction, and the choice for home buyers can often be
difficult. For those considering new construction in 2017, it's
worth considering the added cost that may come amidst ongoing
construction labor shortages that could get worse if
President-elect Trump follows through on his hard-line stances on
immigration and immigrant labor. A shortage of construction workers
as a result may force builders to pay higher wages, costs which are
likely to get passed on to buyers in the form of higher new home
prices.
"Those looking for more affordable housing options will be
pushed to areas farther away from good transit options, in turn
leading more Americans to drive to work.
"Renters should have an easier time in 2017. Income growth and
slowing rent appreciation will combine to make renting more
affordable than it has been for the past two years."
Zillow
Zillow® is the leading real estate and rental marketplace
dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with
the best local professionals who can help. In addition, Zillow
operates an industry-leading economics and analytics bureau led by
Zillow's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data
analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also
sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and
investment and market strategists to predict the path of the Zillow
Home Value Index over the next five years. Zillow also sponsors the
bi-annual Zillow Housing Confidence Index (ZHCI) which measures
consumer confidence in local housing markets, both currently and
over time. Launched in 2006, Zillow is owned and operated by Zillow
Group (NASDAQ:Z and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
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SOURCE Zillow