SEATTLE, Nov. 20, 2015 /PRNewswire/ -- Newly built
apartment buildings are finally opening for new residents and
slowing the rate of rental appreciation across the country, but
rents are still rising much faster than the historical norm and
continue to rise faster than incomes, according to the Zillow®
October Real Estate Market Reportsi.
Nationally, rents grew at 4.5 percent annually in October, down
from 5.3 percent in September and down from a high of 6.6 percent
in July. Single-family rents are rising faster than multifamily
rents, at 4.5 compared to 3.9 percent.
Multifamily housing starts have been increasing since late 2009,
and as units become available, the pace of rental appreciation is
slowing. Lack of inventory has been a leading cause of the ongoing
rental affordability crisis, especially in fast-growing
markets.
Even the hottest rental markets, which have seen double-digit
rent appreciation for the past five months, are growing at a slower
pace although rents are still rising there more than twice as fast
as the national average. The San
Francisco metro has the fastest rental appreciation among
the nation's 35 largest markets. Rents there are up 15.2 percent
from last year, but they were growing as fast as 19 percent
annually in June and July.
"Rental appreciation has started to slow down in part due to
more rental supply. Many of the bigger multifamily rental projects
that were begun a couple years ago in cities nationwide are finally
starting to open for occupancy, easing pressure on rents somewhat,"
said Zillow Chief Economist Dr. Svenja
Gudell. "But make no mistake: Despite this recent slowdown
in rental appreciation, the rental affordability crisis we've been
enduring for the past few years shows no signs of easing,
especially as income growth remains weak. It will take a lot more
supply, and a lot more renters-turned-homeowners, to fully reverse
this trend."
As rents have grown and rental affordability continues to
suffer, the stability and relative affordability of homeownership
may be pushing some qualified renters to make the jump to
homeownership. A widely expected December rate hike from the
Federal Reserve could be an additional incentive for buyers to
enter the market while rates remain low. Reflecting this, home
values are growing at their fastest pace since November 2014, up 4.3 percent to a Zillow Home
Value Indexii of $182,800.
|
Metro
Name
|
October 2015
Zillow Home Value Index (ZHVI)
|
Year-over-Year
Percent Change in ZHVI
|
October 2015
Zillow Rent Indexiii (ZRI)
|
Year-over-Year
Percent Change in ZRI
|
|
United
States
|
$182,800
|
4.3%
|
$1,382
|
4.5%
|
|
New York-Northern New
Jersey
|
$380,400
|
1.8%
|
$2,355
|
5.3%
|
|
Los Angeles-Long
Beach-Anaheim, CA
|
$551,300
|
6.2%
|
$2,485
|
5.8%
|
|
Chicago,
IL
|
$192,000
|
2.1%
|
$1,642
|
1.4%
|
|
Dallas-Fort Worth,
TX
|
$174,400
|
15.2%
|
$1,493
|
5.3%
|
|
Philadelphia,
PA
|
$202,800
|
0.7%
|
$1,559
|
2.1%
|
|
Houston,
TX
|
$168,500
|
8.6%
|
$1,574
|
6.4%
|
|
Washington,
DC
|
$356,000
|
-0.4%
|
$2,112
|
1.7%
|
|
Miami-Fort
Lauderdale, FL
|
$222,200
|
10.3%
|
$1,812
|
4.1%
|
|
Atlanta,
GA
|
$158,500
|
5.5%
|
$1,275
|
5.0%
|
|
Boston, MA
|
$379,900
|
5.1%
|
$2,239
|
7.4%
|
|
San Francisco,
CA
|
$773,400
|
12.2%
|
$3,303
|
15.2%
|
|
Detroit,
MI
|
$120,200
|
6.5%
|
$1,131
|
2.3%
|
|
Riverside,
CA
|
$294,800
|
5.9%
|
$1,686
|
4.1%
|
|
Phoenix,
AZ
|
$213,000
|
8.0%
|
$1,250
|
4.5%
|
|
Seattle,
WA
|
$363,200
|
8.7%
|
$1,912
|
7.4%
|
|
Minneapolis-St Paul,
MN
|
$214,100
|
3.4%
|
$1,504
|
2.2%
|
|
San Diego,
CA
|
$491,700
|
6.4%
|
$2,316
|
5.4%
|
|
St. Louis,
MO
|
$139,800
|
7.1%
|
$1,122
|
2.7%
|
|
Tampa, FL
|
$157,800
|
8.2%
|
$1,293
|
5.1%
|
|
Baltimore,
MD
|
$239,400
|
-1.2%
|
$1,718
|
2.1%
|
|
Denver, CO
|
$316,200
|
16.2%
|
$1,946
|
11.1%
|
|
Pittsburgh,
PA
|
$126,800
|
2.4%
|
$1,097
|
2.4%
|
|
Portland,
OR
|
$304,700
|
11.4%
|
$1,674
|
11.2%
|
|
Charlotte,
NC
|
$155,600
|
3.7%
|
$1,220
|
5.2%
|
|
Sacramento,
CA
|
$326,700
|
7.1%
|
$1,601
|
6.2%
|
|
San Antonio,
TX
|
$147,300
|
6.9%
|
$1,309
|
5.4%
|
|
Orlando,
FL
|
$178,100
|
6.6%
|
$1,339
|
4.9%
|
|
Cincinnati,
OH
|
$140,500
|
3.3%
|
$1,228
|
4.8%
|
|
Cleveland,
OH
|
$125,800
|
3.8%
|
$ 1,130
|
0.3%
|
|
Kansas City,
MO
|
$145,900
|
5.4%
|
$1,196
|
4.8%
|
|
Las Vegas,
NV
|
$196,600
|
8.5%
|
$1,214
|
2.6%
|
|
Columbus,
OH
|
$151,000
|
5.9%
|
$1,273
|
4.6%
|
|
Indianapolis,
IN
|
$129,200
|
3.9%
|
$1,189
|
2.1%
|
|
San Jose,
CA
|
$922,100
|
13.3%
|
$3,398
|
11.0%
|
|
Austin, TX
|
$240,000
|
9.6%
|
$1,682
|
5.2%
|
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. 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.
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 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.
iii 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/more-rental-supply-helps-ease-rents-300182359.html
SOURCE Zillow