SEATTLE, March 14, 2019 /PRNewswire/ -- Rent prices grew
at their fastest rate in 10 months in February, reaching 2.4
percent year-over-year appreciation, according to the February
Zillow® Real Estate Market Report[i].
The U.S. median monthly rent was $1,472 in February, up from $1,438 a year earlier. This translates to more
than $400 in additional yearly
expenses for the typical renter. Rents have steadily recovered
since a slowdown in the fall that saw the first annual price
decreases in more than six years.
Annual rent growth accelerated from January rates in most large
housing markets, with the biggest jumps coming in Portland -- a turnaround after six straight
months of annual rent declines from July through December -- and
Indianapolis.
The only two large housing markets where rent growth fell were
Orlando and Pittsburgh. Despite that slowdown, both still
saw higher-than-average growth, with Orlando rents growing faster than any other
large metro area (7.0 percent).
New York renters have yet to
see an effect from Amazon's decision to not build a new
headquarters in Long Island City. Its rent prices, along with those
in Washington, D.C., and
Nashville, two markets where
Amazon still intends to build large office spaces, have largely
followed national trends since the November announcement.
"The rental market spent part of last year catching its breath
after several years of breakneck growth," said Zillow economist
Jeff Tucker. "Landlords are now
coming to terms with the fact that rent cannot grow faster than
income forever, and after that short correction we can expect a
much more vanilla, slow-growth market going forward. As we enter
the 2020s, the demand for rentals is projected to fall as many
millennials move on to homeownership."
While rent price growth increased, national home value
appreciation sagged to its lowest level since December 2017. The median U.S. home value is
$226,300, a 7.2 percent increase from
a year earlier. The cooldown was felt most in San Jose, Calif., and San Francisco, though these remain the two
priciest large markets in the country.
U.S. for-sale home inventory grew 1 percent year-over-year, an
increase of 16,137 homes. This is the fifth month out of the past
six in which inventory has increased on an annual basis, after
declining for 44 straight months. Inventory picked up the most in
San Jose, Seattle and Los
Angeles, further signaling a cooldown from the frenetic pace
of the past year in major West Coast markets.
Mortgage rates listed on Zillow were mostly flat in February.
Rates ended February at 4.16 percent, down one basis point from the
start of the month. 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
Index,
February
2019
|
ZHVI
Year-
over-
Year
Change
|
Zillow
Rent
Index,
February
2019
|
ZRI
Year-
over-
Year
Change
|
Inventory
Year-
over-
Year
Change
|
United
States
|
$226,300
|
7.2%
|
$1,472
|
2.4%
|
1.0%
|
New York,
NY
|
$440,400
|
4.7%
|
$2,419
|
1.2%
|
2.6%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$652,200
|
2.5%
|
$2,835
|
3.5%
|
26.4%
|
Chicago,
IL
|
$225,300
|
3.5%
|
$1,690
|
3.0%
|
1.9%
|
Dallas-Fort Worth,
TX
|
$244,400
|
10.0%
|
$1,641
|
2.8%
|
15.3%
|
Philadelphia,
PA
|
$233,500
|
3.5%
|
$1,605
|
2.3%
|
-6.7%
|
Houston,
TX
|
$206,300
|
6.3%
|
$1,583
|
2.2%
|
9.2%
|
Washington,
DC
|
$406,800
|
2.9%
|
$2,172
|
1.7%
|
-24.7%
|
Miami-Fort
Lauderdale, FL
|
$284,700
|
6.7%
|
$1,918
|
2.8%
|
7.0%
|
Atlanta,
GA
|
$218,600
|
11.1%
|
$1,443
|
3.8%
|
13.9%
|
Boston, MA
|
$468,100
|
5.3%
|
$2,391
|
2.0%
|
15.4%
|
San Francisco,
CA
|
$955,200
|
3.5%
|
$3,448
|
1.6%
|
24.2%
|
Detroit,
MI
|
$161,300
|
8.2%
|
$1,225
|
2.3%
|
13.6%
|
Riverside,
CA
|
$368,300
|
5.2%
|
$1,983
|
6.2%
|
11.5%
|
Phoenix,
AZ
|
$266,300
|
7.1%
|
$1,442
|
6.8%
|
0.7%
|
Seattle,
WA
|
$491,500
|
3.0%
|
$2,232
|
2.0%
|
31.8%
|
Minneapolis-St Paul,
MN
|
$269,200
|
6.0%
|
$1,697
|
4.2%
|
-3.2%
|
San Diego,
CA
|
$590,500
|
2.1%
|
$2,643
|
4.2%
|
25.0%
|
St. Louis,
MO
|
$167,100
|
5.4%
|
$1,155
|
1.6%
|
-9.1%
|
Tampa, FL
|
$213,800
|
7.8%
|
$1,439
|
5.5%
|
8.5%
|
Baltimore,
MD
|
$268,500
|
3.2%
|
$1,751
|
1.0%
|
-14.9%
|
Denver, CO
|
$407,500
|
4.5%
|
$2,104
|
3.3%
|
18.8%
|
Pittsburgh,
PA
|
$144,400
|
5.2%
|
$1,100
|
4.9%
|
-10.0%
|
Portland,
OR
|
$397,500
|
3.8%
|
$1,867
|
0.9%
|
13.2%
|
Charlotte,
NC
|
$207,600
|
9.8%
|
$1,339
|
3.6%
|
0.9%
|
Sacramento,
CA
|
$409,600
|
3.7%
|
$1,910
|
3.7%
|
10.3%
|
San Antonio,
TX
|
$193,900
|
6.7%
|
$1,364
|
1.9%
|
12.0%
|
Orlando,
FL
|
$238,300
|
8.8%
|
$1,527
|
7.0%
|
6.5%
|
Cincinnati,
OH
|
$169,900
|
8.6%
|
$1,304
|
2.4%
|
3.0%
|
Cleveland,
OH
|
$146,300
|
6.2%
|
$1,162
|
1.7%
|
N/A
|
Kansas City,
MO
|
$192,800
|
9.4%
|
$1,293
|
1.7%
|
-13.7%
|
Las Vegas,
NV
|
$279,600
|
10.5%
|
N/A
|
N/A
|
3.0%
|
Columbus,
OH
|
$190,900
|
7.2%
|
$1,360
|
3.7%
|
7.3%
|
Indianapolis,
IN
|
$165,600
|
12.8%
|
$1,234
|
2.7%
|
N/A
|
San Jose,
CA
|
$1,230,400
|
3.3%
|
$3,547
|
1.4%
|
42.9%
|
Austin, TX
|
$310,200
|
6.6%
|
$1,700
|
1.6%
|
1.5%
|
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
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, data
analysts, applied scientists and engineers 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/research/data.
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SOURCE Zillow