SEATTLE, Sept. 20, 2018 /PRNewswire/ -- For the first time
since 2012, rents nationwide remained at the same level as they
were a year earlier, with a median rent of $1,440.
Annual rent appreciation has slowed for six straight months,
according to the August Zillow® Real Estate Market
Reporti. Rent appreciation has remained below 3 percent
annual increase for the past 27 months after growing as fast as 6.6
percent in July 2015.
The median rent fell on an annual basis in 19 of the 35 largest
markets. Rent declined the most in Portland, Ore., where the $1,834 median is 1.8 percent lower than in
August 2017. The typical rent is
growing fastest in Riverside,
Calif., where it rose 3.7 percent over the past year to
$1,899.
It's not only rent appreciation that slowed in August: Home
value appreciation is at its slowest pace in two years. Nationally,
home values rose 6.5 percent over the past year to a median value
of $216,700, down from a peak
post-recession annual appreciation rate of 8.2 percent in
March 2018. In August 2017, home values were increasing 7.4
percent annually.
San Jose is seeing the fastest
home value appreciation, up 22.7 percent since August 2017. Las
Vegas and Atlanta are the
only other two large markets where home values grew at a
double-digit pace, up 12.0 percent and 10.4 percent,
respectively.
"Earlier this year, the housing market was a story of diverging
paths, with rents steadily cooling and home values picking up
speed. Normally rents and home values are tied together, but strong
apartment construction and a surge of young homebuyers contributed
to this historical anomaly. As summer turns to fall, the more
typical pattern is reemerging, as rents and home values are both
slowing in unison," said Zillow Senior Economist Aaron Terrazas. "The feverish housing crunch of
the past few years seems to be cracking. Slower rent growth means
that renters may feel less urgency to buy. While home values
continue to grow at double their historic pace, the speed of
appreciation is down sharply from its spring highs."
In August, there were 3.6 percent fewer homes for sale than the
year before. The lack of available homes has been a defining
characteristic of the housing market for several years, but this
trend is easing. Inventory has fallen on an annual basis for 43
consecutive months, but the speed of its decline has slowed
substantially. A year ago, inventory was down 13.1 percent from the
previous year.
Among the largest U.S. housing markets, the biggest inventory
declines are in Pittsburgh,
Atlanta and Columbus, where inventory is falling at a
double-digit pace.
The number of available homes on a given day is on the rise in
more than half of the nation's largest markets, but they are
returning from very low levels. Inventory is at its lowest point
since 2015 in nearly every large market.
Mortgage rates on Zillowii ended August at 4.32
percent. Rates were highest at the beginning of the month, when
they were at 4.43 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
|
Zillow
Home
Value Index,
August 2018
|
ZHVI
Year-
over-
Year
Change
|
Zillow
Rent
Index,
August
2018
|
ZRI Year-
over-Year
Change
|
Inventory
Year-over-
Year Change
|
United
States
|
$ 216,700
|
6.5%
|
$ 1,440
|
0.0%
|
-3.6%
|
New York / Northern
New Jersey
|
$ 426,300
|
4.4%
|
$ 2,371
|
-1.3%
|
3.3%
|
Los Angeles,
CA
|
$ 641,800
|
5.2%
|
$ 2,751
|
1.3%
|
21.6%
iii
|
Chicago,
IL
|
$ 219,100
|
4.2%
|
$ 1,636
|
-1.4%
|
2.0%
|
Dallas, TX
|
$ 229,400
|
9.7%
|
$ 1,594
|
-0.3%
|
N/A
|
Philadelphia,
PA
|
$ 227,200
|
4.2%
|
$ 1,566
|
-1.4%
|
-9.5%
|
Houston,
TX
|
$ 198,500
|
5.3%
|
$ 1,548
|
0.3%
|
-4.3%
|
Washington,
DC
|
$ 397,800
|
3.2%
|
$ 2,133
|
-0.6%
|
0.1%
|
Miami, FL
|
$ 274,000
|
7.0%
|
$ 1,856
|
0.3%
|
3.4%
|
Atlanta,
GA
|
$ 204,600
|
10.4%
|
$ 1,394
|
1.5%
|
-11.8%
|
Boston, MA
|
$ 451,500
|
5.2%
|
$ 2,366
|
-1.3%
|
9.6%
|
San Francisco,
CA
|
$ 947,700
|
9.0%
|
$ 3,399
|
-0.2%
|
22.2%
|
Detroit,
MI
|
$ 153,900
|
7.4%
|
$ 1,194
|
1.3%
|
4.6%
|
Riverside,
CA
|
$ 356,600
|
5.5%
|
$ 1,899
|
3.7%
|
18.5%
|
Phoenix,
AZ
|
$ 254,400
|
6.3%
|
$ 1,359
|
0.9%
|
-8.0%
|
Seattle,
WA
|
$ 486,800
|
8.2%
|
$ 2,171
|
-1.1%
|
32.9%
|
Minneapolis-St. Paul,
MN
|
$ 258,900
|
5.4%
|
$ 1,638
|
1.0%
|
1.2%
|
San Diego,
CA
|
$ 580,500
|
4.9%
|
$ 2,541
|
0.3%
|
41.9%
|
St. Louis,
MO
|
$ 161,200
|
4.6%
|
$ 1,139
|
-0.9%
|
-5.3%
|
Tampa, FL
|
$ 205,000
|
8.9%
|
$ 1,390
|
1.7%
|
0.9%
|
Baltimore,
MD
|
$ 263,300
|
3.9%
|
$ 1,740
|
-0.1%
|
-1.2%
|
Denver, CO
|
$ 396,200
|
6.2%
|
$ 2,054
|
0.4%
|
-1.7%
|
Pittsburgh,
PA
|
$ 140,200
|
6.1%
|
$ 1,084
|
-1.1%
|
-14.7%
|
Portland,
OR
|
$ 387,900
|
4.2%
|
$ 1,834
|
-1.8%
|
14.8%
|
Charlotte,
NC
|
$ 195,000
|
8.8%
|
$ 1,293
|
0.4%
|
3.1%
|
Sacramento,
CA
|
$ 397,100
|
4.3%
|
$ 1,842
|
3.1%
|
7.8%
|
San Antonio,
TX
|
$ 184,600
|
4.4%
|
$ 1,331
|
-0.8%
|
12.5%
|
Orlando,
FL
|
$ 226,300
|
7.9%
|
$ 1,449
|
1.4%
|
-7.7%
|
Cincinnati,
OH
|
$ 161,000
|
5.4%
|
$ 1,277
|
-0.1%
|
-4.7%
|
Cleveland,
OH
|
$ 140,400
|
5.2%
|
$ 1,140
|
-0.7%
|
-7.4%
|
Kansas City,
MO
|
$ 181,300
|
7.5%
|
$ 1,264
|
-1.3%
|
-0.6%
|
Las Vegas,
NV
|
$ 263,300
|
12.0%
|
$ 1,306
|
2.3%
|
N/A
|
Columbus,
OH
|
$ 180,700
|
6.5%
|
$ 1,336
|
0.8%
|
-11.1%
|
Indianapolis,
IN
|
$ 152,700
|
8.1%
|
$ 1,195
|
-0.6%
|
N/A
|
San Jose,
CA
|
$
1,281,100
|
22.7%
|
$ 3,499
|
-0.4%
|
87.7%
|
Austin, TX
|
$ 296,300
|
5.3%
|
$ 1,682
|
-1.7%
|
1.2%
|
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 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 In markets with some of the biggest annual
increases in inventory, including San
Jose, San Diego,
Seattle, San Francisco and Los Angeles, August
2017 inventory levels were near historic lows.
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SOURCE Zillow