SEATTLE, Dec. 21, 2017 /PRNewswire/ -- After growing
at a relatively slow pace for much of the 2017, rental prices have
started to tick back up again, driven mainly by an increase in
single-family rental prices, according to the November Zillow® Real
Estate Market Reporti.
Median rent across the country rose 2.4 percent over the past
year to a median rental price of $1,435 per month, the highest median rent Zillow
has ever reported.
With the recent pick up in rent prices, rent growth is now
rising at the same pace as incomes for the first time since
June 2016, causing renters to put
more of their income toward a monthly rental payment. Incomes rose
2.5 percentii since last November, and they have been
hovering around that rate for over a year.
The West Coast dominates the list of markets with the fastest
rising rents, with Sacramento,
Calif., Riverside, Calif.,
and Seattle leading the way, all
rising at over 5 percent annually. Portland rents are also appreciating quickly,
up 4.6 percent since last November.
"After about a two-year slowdown, rent growth is starting to
pick back up across the nation," said Zillow senior economist
Aaron Terrazas. "The slowdown in
rental appreciation, combined with consistent income growth, gave
renters some reprieve from worsening rental affordability over the
past few years. But as rental growth begins to catch up with income
growth, affordability will deteriorate, placing a squeeze on
budget-constrained renters. Looking into 2018, rent is expected to
continue gaining steam in growing employment centers, like
Dallas and New York, as well as a few smaller markets
like Cleveland. More widespread
rent growth could mean home buying demands stay high, as renters
who can afford it move away from the unpredictability of rising
rents toward the relative stability of a monthly mortgage payment
instead."
National home values are continuing to rise, but not as quickly
as they have over the past several months. Over the past year, home
values rose 6.7 percent, the slowest rate of appreciation since
November 2016, to a median home value
of $205,100.
San Jose leads the nation in
home value growth, up about 17.5 percent since last November to a
median home value of $1,128,300.
Las Vegas and Seattle follow with home values up 14 percent
and 12 percent, respectively.
As 2017 comes to a close, home shoppers will find 10.5 percent
fewer homes on the market to choose from than a year ago.
San Jose, San Francisco, and Denver reported the greatest drop in inventory
since last November. There are almost 55 percent fewer homes on the
market in San Jose than last year.
In San Francisco there are 30
percent fewer, and 26.5 percent fewer in Denver.
Mortgage rates moved in a very tight range throughout the month
of November, reflecting stable financial markets and a predictable
monetary policy outlook, despite looming leadership changes at the
Federal Reserve.
Mortgages ratesiii on Zillow started and ended the
month of November at 3.75 percent, which was also the month
highiv, and hit a low of 3.68 percent in the first week
of the monthv. Zillow's real-time mortgage
rates are based on thousands of custom mortgage quotes
submitted daily to anonymous borrowers on the Zillow Mortgages site
and reflect the most recent changes in the market.
Metropolitan
Area
|
Zillow Home Value
Indexvi (ZHVI)
|
ZHVI
Year-Over-Year Change
|
ZHVI Forecast Over
the Next Year
|
Zillow Rent
Indexvii (ZRI)
|
ZRI Year-Over-Year
Change
|
ZRI Forecast Over
the Next Year
|
Year-Over-Year
Inventory Change
|
United
States
|
$
205,100
|
6.7%
|
3.2%
|
$
1,435
|
2.4%
|
1.5%
|
-10.5%
|
New York,
NY
|
$
429,400
|
7.4%
|
2.7%
|
$
2,401
|
0.7%
|
2.2%
|
-15.7%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$
625,600
|
6.3%
|
2.3%
|
$
2,725
|
4.2%
|
3.5%
|
-22.8%
|
Chicago,
IL
|
$
213,800
|
5.2%
|
2.3%
|
$
1,651
|
1.0%
|
0.2%
|
-10.4%
|
Dallas-Fort Worth,
TX
|
$
218,300
|
9.0%
|
4.7%
|
$
1,600
|
2.9%
|
2.7%
|
22.2%
|
Philadelphia,
PA
|
$
220,700
|
3.4%
|
2.4%
|
$
1,579
|
0.4%
|
0.4%
|
-11.9%
|
Houston,
TX
|
$
184,500
|
5.1%
|
3.4%
|
$
1,538
|
-1.3%
|
0.0%
|
2.0%
|
Washington,
DC
|
$
385,500
|
2.1%
|
1.3%
|
$
2,135
|
0.7%
|
0.4%
|
9.1%
|
Miami-Fort
Lauderdale, FL
|
$
262,400
|
7.5%
|
1.6%
|
$
1,850
|
-1.2%
|
2.4%
|
-1.4%
|
Atlanta,
GA
|
$
184,600
|
7.4%
|
4.3%
|
$
1,383
|
4.1%
|
4.1%
|
-13.6%
|
Boston, MA
|
$
436,200
|
6.7%
|
3.3%
|
$
2,369
|
2.0%
|
1.3%
|
-17.3%
|
San Francisco,
CA
|
$
893,100
|
8.1%
|
3.8%
|
$
3,388
|
0.4%
|
0.5%
|
-30.1%
|
Detroit,
MI
|
$
143,300
|
6.9%
|
3.4%
|
$
1,187
|
1.8%
|
1.1%
|
-13.4%
|
Riverside,
CA
|
$
339,100
|
6.8%
|
5.0%
|
$
1,847
|
6.2%
|
4.1%
|
-19.1%
|
Phoenix,
AZ
|
$
244,800
|
7.0%
|
3.0%
|
$
1,349
|
3.8%
|
3.6%
|
-12.9%
|
Seattle,
WA
|
$
463,800
|
12.3%
|
5.4%
|
$
2,203
|
5.4%
|
5.4%
|
-20.8%
|
Minneapolis-St Paul,
MN
|
$
247,000
|
5.2%
|
2.1%
|
$
1,628
|
5.0%
|
2.6%
|
-11.4%
|
San Diego,
CA
|
$
560,800
|
6.6%
|
3.7%
|
$
2,541
|
4.4%
|
2.9%
|
-25.1%
|
St. Louis,
MO
|
$
150,300
|
1.6%
|
3.0%
|
$
1,139
|
1.4%
|
-0.2%
|
-10.1%
|
Tampa, FL
|
$
191,800
|
8.4%
|
2.9%
|
$
1,360
|
1.7%
|
0.2%
|
-15.1%
|
Baltimore,
MD
|
$
261,400
|
2.3%
|
1.2%
|
$
1,733
|
0.3%
|
0.8%
|
-6.1%
|
Denver, CO
|
$
376,500
|
6.5%
|
3.0%
|
$
2,038
|
1.8%
|
3.3%
|
-26.5%
|
Pittsburgh,
PA
|
$
138,900
|
5.2%
|
3.0%
|
$
1,058
|
-2.0%
|
-2.6%
|
-11.3%
|
Portland,
OR
|
$
370,700
|
5.7%
|
3.7%
|
$
1,879
|
4.6%
|
4.7%
|
3.0%
|
Charlotte,
NC
|
$
181,600
|
9.3%
|
4.0%
|
$
1,288
|
3.6%
|
2.9%
|
-0.8%
|
Sacramento,
CA
|
$
380,000
|
8.7%
|
5.4%
|
$
1,829
|
7.5%
|
7.3%
|
-22.1%
|
San Antonio,
TX
|
$
167,700
|
7.4%
|
3.5%
|
$
1,339
|
1.1%
|
0.4%
|
6.8%
|
Orlando,
FL
|
$
212,100
|
7.5%
|
3.8%
|
n/a
|
n/a
|
n/a
|
-13.8%
|
Cincinnati,
OH
|
$
156,500
|
6.2%
|
3.0%
|
$
1,275
|
2.7%
|
3.5%
|
-12.2%
|
Cleveland,
OH
|
$
137,200
|
6.0%
|
2.2%
|
$
1,142
|
-0.3%
|
0.3%
|
-12.9%
|
Kansas City,
MO
|
$
164,600
|
8.3%
|
3.4%
|
$
1,272
|
2.4%
|
2.1%
|
5.8%
|
Las Vegas,
NV
|
$
243,400
|
13.8%
|
7.1%
|
$
1,290
|
4.0%
|
2.8%
|
-24.6%
|
Columbus,
OH
|
$
169,300
|
6.7%
|
3.5%
|
$
1,325
|
2.6%
|
2.0%
|
-22.7%
|
Indianapolis,
IN
|
$
141,700
|
6.1%
|
3.7%
|
$
1,209
|
1.9%
|
1.5%
|
-22.1%
|
San Jose,
CA
|
$
1,128,300
|
17.4%
|
8.9%
|
$
3,493
|
0.5%
|
0.1%
|
-54.0%
|
Austin, TX
|
$
277,600
|
6.6%
|
3.3%
|
$
1,689
|
-0.6%
|
0.6%
|
6.9%
|
About 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. Launched in 2006, Zillow
is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow and Zestimates are registered trademarks of Zillow,
Inc.
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i The
Zillow Real Estate Market Reports are a monthly overview of the
national and local real estate markets. The reports are compiled by
Zillow Real Estate Research. For more information, visit
www.zillow.com/research/. The data in Zillow's Real Estate Market
Reports are aggregated from public sources by a number of data
providers for 928 metropolitan and micropolitan areas dating back
to 1996. Mortgage and home loan data are typically recorded in each
county and publicly available through a county recorder's office.
All current monthly data at the national, state, metro, city, ZIP
code and neighborhood level can be accessed at
www.zillow.com/local-info/ and
www.zillow.com/research/data.
|
ii
According to the Bureau of Labor Statistics, November
2017.
|
iii
Mortgage rates for a 30-year fixed mortgage
|
iv Month
high occurred on November 1st and
14th.
|
v Month
low occurred on November 6th, 7th, and
8th.
|
vi The
Zillow Home Value Index (ZHVI) is the median estimated home value
for a given geographic area on a given day and includes the value
of all single-family residences, condominiums and cooperatives,
regardless of whether they sold within a given period. It is
expressed in dollars, and seasonally adjusted.
|
vii The
Zillow Rent Index (ZRI) is the median Rent Zestimate® (estimated
monthly rental price) for a given geographic area on a given day,
and includes the value of all single-family residences,
condominiums, cooperatives and apartments in Zillow's database,
regardless of whether they are currently listed for rent. It is
expressed in dollars.
|
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SOURCE Zillow