SEATTLE, June 28, 2018 /PRNewswire/ -- Median rent is
appreciating more quickly this spring than last in 27 of the 35
largest U.S markets, according to the May Zillow® Real Estate
Market Reporti.
Pittsburgh, Detroit and Houston reported the greatest jumps in annual
rent growth this spring compared to last. Median rent in all three
of these metros was falling at this time last year, but is now
appreciating over 1 percent annually.
In some of the nation's most expensive rental markets, median
rent is appreciating more slowly now than last spring. In
Seattle, for example, where annual
rent growth has been among the highest in the country, rent
appreciation has slowed from a 5.8 percent annual growth rate last
spring, to a 3.3 percent annual growth rate now. A similar trend
holds true in Los Angeles,
Portland and Boston.
Across the U.S., rent growth has been holding steady at about a
2-3 percent annual appreciation rate for the past 11 months. Median
rent rose 2.1 percent over the past year to $1,440 per month.
Saving enough money for a down payment is one of the greatest
hurdles to homeownership, and rising rents is one of the main
reasons why saving is so difficult. Even in markets where rent
growth is slowing, high prices have already been established. With
mortgage rates rising and mortgage affordability deteriorating,
owning a home may start to feel out of reach for many
Americans.
"Over the past two years, rent growth slowed across the country
as new apartments hit the market and renters with the financial
means to do so increasingly became homeowners," said Zillow Senior
Economist Aaron Terrazas. "The
slowdown in rent growth was most prominent in the markets that
moved most quickly to add units – either because it was easy to
build or because of local demands. But the ever-swinging pendulum
is again on the move. This spring rent appreciation has perked back
up nationwide, though it remains well within a long-term
sustainable range. The ebb-and-flow of supply and demand is
following slightly different timeliness in different markets, but
over the past two years, we have seen similar trends in markets
from the Southeast to the Northwest."
Home values continue to
appreciate across the country. The median U.S. home value rose just
over 8 percent over the past year to $216,000. San Jose,
Calif., Las Vegas and
Seattle reported the greatest
annual home value appreciation among the 35 largest U.S.
metros.
The median home value in San
Jose is now $1,265,300, up
almost 26 percent since last May. Home values rose 15.5 percent over the past
year in Las Vegas and 12 percent
over the past year in Seattle.
Spring home shoppers will have 5.3 percent fewer homes to choose
from than last year, though the pace of inventory declines has been
slowing for the past 10 months. Markets with the greatest drop in
for-sale inventory are Denver,
Atlanta and Pittsburgh. Home shoppers in Denver and Atlanta will have 15 percent fewer homes to
choose from than a year ago, and 13 percent fewer in Pittsburgh.
May ended with mortgage rates on Zillowii at 4.29
percent, after starting the month at 4.38 percent. May mortgage
rates peaked in the middle of the monthiii at 4.51
percent, the highest rate since the beginning of 2013iv,
and hit a month low in the last few days of the monthv
when rates were at 4.28 percent. 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
|
YoY Rent Growth in
May 2017
|
YoY Rent Growth in
May 2018
|
Zillow Rent Index
(ZRI)
|
Zillow Home Value
Index (ZHVI)
|
YoY ZHVI
Change
|
YoY Inventory
Change
|
United
States
|
0.70%
|
2.10%
|
$
1,440
|
$
216,000
|
8.1%
|
-5.3%
|
New York,
NY
|
-1.90%
|
0.90%
|
$
2,378
|
$
428,200
|
7.2%
|
-2.3%
|
Los Angeles-Long
Beach-Anaheim, CA
|
4.20%
|
3.50%
|
$
2,751
|
$
644,900
|
8.0%
|
1.4%
|
Chicago,
IL
|
-1.00%
|
0.90%
|
$
1,638
|
$
219,700
|
5.8%
|
-3.8%
|
Dallas-Fort Worth,
TX
|
2.90%
|
1.20%
|
$
1,595
|
$
227,500
|
11.5%
|
32.6%
|
Philadelphia,
PA
|
-1.00%
|
1.00%
|
$
1,568
|
$
227,300
|
6.2%
|
-5.0%
|
Houston,
TX
|
-2.70%
|
1.20%
|
$
1,550
|
$
197,400
|
5.4%
|
-2.6%
|
Washington,
DC
|
-0.10%
|
1.20%
|
$
2,131
|
$
400,000
|
4.5%
|
25.6%
|
Miami-Fort
Lauderdale, FL
|
-1.80%
|
1.00%
|
$
1,863
|
$
271,900
|
8.0%
|
1.4%
|
Atlanta,
GA
|
2.90%
|
4.00%
|
$
1,393
|
$
203,200
|
11.4%
|
-15.1%
|
Boston, MA
|
3.20%
|
1.20%
|
$
2,359
|
$
453,200
|
7.0%
|
-6.3%
|
San Francisco,
CA
|
-0.40%
|
1.80%
|
$
3,398
|
$
949,800
|
11.2%
|
-4.4%
|
Detroit,
MI
|
-1.30%
|
3.60%
|
$
1,195
|
$
154,100
|
9.9%
|
-1.5%
|
Riverside,
CA
|
3.00%
|
6.50%
|
$
1,895
|
$
357,200
|
8.8%
|
3.2%
|
Phoenix,
AZ
|
1.90%
|
4.00%
|
$
1,366
|
$
253,300
|
7.9%
|
-11.3%
|
Seattle,
WA
|
5.80%
|
3.30%
|
$
2,179
|
$
490,200
|
12.2%
|
-6.9%
|
Minneapolis-St Paul,
MN
|
3.10%
|
3.50%
|
$
1,636
|
$
260,700
|
7.9%
|
-7.3%
|
San Diego,
CA
|
2.70%
|
3.00%
|
$
2,542
|
$
584,100
|
7.3%
|
19.8%
|
St. Louis,
MO
|
0.10%
|
0.40%
|
$
1,139
|
$
160,400
|
5.1%
|
-5.8%
|
Tampa, FL
|
2.10%
|
2.70%
|
$
1,386
|
$
203,700
|
11.5%
|
-1.4%
|
Baltimore,
MD
|
-0.80%
|
1.50%
|
$
1,739
|
$
264,600
|
4.9%
|
8.9%
|
Denver, CO
|
0.10%
|
2.80%
|
$
2,051
|
$
398,000
|
7.9%
|
-15.4%
|
Pittsburgh,
PA
|
-5.20%
|
1.90%
|
$
1,079
|
$
140,600
|
7.7%
|
-13.0%
|
Portland,
OR
|
3.60%
|
1.50%
|
$
1,835
|
$
389,800
|
5.8%
|
17.6%
|
Charlotte,
NC
|
1.00%
|
3.40%
|
$
1,293
|
$
194,400
|
11.0%
|
8.3%
|
Sacramento,
CA
|
4.50%
|
6.40%
|
$
1,843
|
$
399,100
|
7.0%
|
-5.9%
|
San Antonio,
TX
|
1.00%
|
0.90%
|
$
1,335
|
$
184,200
|
5.9%
|
11.1%
|
Orlando,
FL
|
2.70%
|
3.60%
|
$
1,445
|
$
225,000
|
9.6%
|
-10.5%
|
Cincinnati,
OH
|
1.10%
|
2.00%
|
$
1,276
|
$
159,600
|
6.2%
|
-7.2%
|
Cleveland,
OH
|
0.80%
|
0.10%
|
$
1,140
|
$
140,500
|
7.2%
|
-10.0%
|
Kansas City,
MO
|
1.80%
|
0.60%
|
$
1,266
|
$
179,700
|
8.8%
|
-5.4%
|
Las Vegas,
NV
|
0.80%
|
4.40%
|
$
1,302
|
$
261,900
|
15.5%
|
n/a
|
Columbus,
OH
|
0.80%
|
2.90%
|
$
1,333
|
$
181,600
|
9.4%
|
-10.8%
|
Indianapolis,
IN
|
-0.40%
|
0.90%
|
$
1,197
|
$
150,800
|
7.3%
|
n/a
|
San Jose,
CA
|
-1.20%
|
1.80%
|
$
3,500
|
$
1,265,300
|
25.7%
|
-6.3%
|
Austin, TX
|
-1.00%
|
-0.50%
|
$
1,680
|
$
295,100
|
5.5%
|
-0.3%
|
Zillow Research
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
great real estate professionals. In addition, Zillow operates an
industry-leading economics and analytics bureau led by Zillow
Group'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 is a registered trademark of Zillow, Inc.
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 Mortgage rates for a 30-year fixed mortgage.
iii Month high hit on May
17th.
iv January 5, 2013
v Month low was hit on May
29th and 30th.
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SOURCE Zillow