SEATTLE, Dec. 18, 2020 /PRNewswire/ -- Rent
appreciation began to recover in November after a long slide that
began in February, and home value growth soared to new
heights, according to Zillow's® latest Real Estate Market
Report1. Looking forward, Zillow economists predict 2021
sales to be the strongest since 2005, for rent growth to make up
for what it lost in 2020 and for home values to reach 10% year over
year growth by November.
The typical U.S. rent was up 1.1% year over year in November to
$1,734, after sliding from 3.9%
growth in February to just 0.7% growth in October. Among the 100
largest U.S. markets, monthly rent growth was highest in
Stamford, Connecticut (3.1%),
Providence, Rhode Island (2.3%),
and Ogden, Utah (2.1%).
Typical rents in November are in roughly the same place they
began the year, rising only $4 since
January as renters were particularly hard-hit by the coronavirus
pandemic and resulting recession. Just recently, Gen Z renters
especially began venturing back out on their own and often finding
good deals, but a predicted rebound in the rental market may make
those a limited-time offer.
"With a vaccine on the horizon and Gen Z continuing to graduate
from college, we expect the cloud of uncertainty surrounding the
pandemic to lift and demand for rental units to surge in 2021,"
said Zillow senior economist Chris
Glynn. "Though the coming rebound in the rental market is
good news for some, it will certainly put millions of renters who
were hit hard by pandemic-related income loss in an even more
tenuous position, and further government intervention will likely
be needed to avoid a painful wave of evictions."
While the rental market appears poised to turn the corner, the
for-sale market continues to have the pedal pressed firmly to the
floor. Zillow's typical home value rose 1.1% from October to
November and 3% over the past three months -- both of which are the
largest gains on record going back to 1996.
Home values across the U.S. rose 7.5% since last year to
$263,351. The largest annual
increases by metro are in San Jose
at 14.2%, Phoenix at 14.1% and
Seattle at 13.2%.
The rapid acceleration in home values across the U.S. is driven
by robust demand and diminishing inventory -- the same forces that
established this sellers' market after a short spring lull.
Looking forward to next year, Zillow economists expect home
values to increase by 3.6% in the three months ending February 2021 and by 10.3% from November 2020 to November 2021.
"We expect the housing market to continue its bull run from this
summer and fall well into 2021," said Zillow senior economist
Jeff Tucker. "This rapid price
growth will be driven by the same factors that took the steering
wheel in 2020: strong demographic trends, shifts in buyer
preferences sparked by the pandemic, low mortgage rates, and short
supply. The millennial generation is moving into their mid-30s and
bringing a wave of demand from renters looking to buy their first
homes."
Despite the pandemic, 2020 has been a remarkably strong year for
sales. Zillow economists expect 5.7 million homes to be sold by the
end of the year -- 5.9% more than were sold in 2019. Next year is
forecasted to be much stronger, with 6.9 million homes expected to
be sold -- the strongest year since 2005 and 21.9% more than
2020.
Mortgage rates listed by third-party lenders on Zillow started
the month at 2.86%, hit monthly highs of 2.92% on Nov. 3 and Nov. 9,
then reached down to monthly lows of 2.72% on Nov. 18 and Nov. 20
before finishing out the month at 2.80%. Zillow's real-time
mortgage rates are based on thousands of custom mortgage quotes
submitted daily to anonymous borrowers on the Zillow Group
Mortgages site by third-party lenders and reflect recent changes in
the market2.
Metropolitan
Area*
|
Zillow Home
Value Index
(ZHVI),
November
2020
|
ZHVI - YoY
Change,
November
2020
|
Newly
Pending
Listings - YoY,
as of the week
ending Dec. 12
|
Zillow
Observed Rent
Index (ZORI),
November
2020
|
ZORI - YoY
Change,
November
2020
|
United
States
|
$263,351
|
7.5%
|
18.2%
|
$1,734
|
1.1%
|
New York/Newark,
NY/NJ
|
$508,140
|
6.0%
|
51.0%
|
$2,528
|
-8.3%
|
Los Angeles,
CA
|
$731,024
|
8.6%
|
-4.0%
|
$2,579
|
0.3%
|
Chicago,
IL
|
$256,537
|
5.4%
|
32.9%
|
$1,661
|
-2.2%
|
Dallas-Fort Worth,
TX
|
$268,012
|
6.3%
|
20.3%
|
$1,570
|
2.3%
|
Philadelphia,
PA
|
$271,494
|
8.6%
|
74.0%
|
$1,610
|
1.6%
|
Houston,
TX
|
$227,154
|
5.2%
|
29.1%
|
$1,492
|
1.2%
|
Washington,
DC
|
$467,757
|
7.1%
|
89.6%
|
$2,039
|
-2.1%
|
Miami-Fort
Lauderdale, FL
|
$315,889
|
6.0%
|
22.8%
|
$1,935
|
1.9%
|
Atlanta,
GA
|
$258,262
|
8.0%
|
19.4%
|
$1,607
|
5.7%
|
Boston, MA
|
$529,013
|
8.1%
|
-30.5%
|
$2,270
|
-5.4%
|
San Francisco,
CA
|
$1,158,018
|
5.7%
|
73.0%
|
$2,985
|
-7.1%
|
Detroit,
MI
|
$195,138
|
8.5%
|
32.1%
|
$1,322
|
4.8%
|
Riverside,
CA
|
$420,573
|
9.3%
|
22.2%
|
$2,206
|
8.9%
|
Phoenix,
AZ
|
$321,359
|
14.1%
|
25.4%
|
$1,558
|
8.8%
|
Seattle,
WA
|
$580,462
|
13.2%
|
25.0%
|
$1,891
|
-2.2%
|
Minneapolis-St. Paul,
MN
|
$313,259
|
7.5%
|
17.6%
|
$1,546
|
2.0%
|
San Diego,
CA
|
$670,649
|
11.2%
|
|
$2,355
|
3.8%
|
St. Louis,
MO
|
$192,869
|
8.0%
|
22.2%
|
$1,154
|
4.2%
|
Tampa, FL
|
$250,431
|
10.3%
|
|
$1,581
|
6.8%
|
Baltimore,
MD
|
$314,747
|
6.5%
|
96.6%
|
$1,663
|
2.6%
|
Denver, CO
|
$474,618
|
7.4%
|
16.0%
|
$1,743
|
0.9%
|
Pittsburgh,
PA
|
$174,533
|
8.6%
|
22.6%
|
$1,186
|
2.0%
|
Portland,
OR
|
$449,383
|
8.5%
|
29.3%
|
$1,665
|
2.1%
|
Charlotte,
NC
|
$258,213
|
9.3%
|
3.5%
|
$1,533
|
3.9%
|
Sacramento,
CA
|
$466,944
|
9.8%
|
20.9%
|
$1,948
|
7.0%
|
San Antonio,
TX
|
$218,583
|
4.9%
|
38.5%
|
$1,336
|
2.2%
|
Orlando,
FL
|
$270,289
|
6.7%
|
|
$1,595
|
1.9%
|
Cincinnati,
OH
|
$203,561
|
10.1%
|
21.1%
|
$1,309
|
5.5%
|
Cleveland,
OH
|
$172,584
|
10.4%
|
14.4%
|
$1,140
|
3.5%
|
Kansas City,
MO
|
$221,847
|
9.1%
|
20.8%
|
$1,205
|
5.8%
|
Las Vegas,
NV
|
$310,895
|
7.3%
|
20.5%
|
$1,483
|
6.6%
|
Columbus,
OH
|
$228,725
|
9.4%
|
17.8%
|
$1,333
|
5.3%
|
Indianapolis,
IN
|
$199,431
|
9.6%
|
25.8%
|
$1,273
|
6.8%
|
San Jose,
CA
|
$1,275,267
|
14.2%
|
3.9%
|
$2,958
|
-5.2%
|
Austin, TX
|
$368,918
|
11.2%
|
12.6%
|
$1,539
|
-0.5%
|
Virginia Beach,
VA
|
$258,931
|
6.8%
|
|
$1,397
|
5.4%
|
Nashville,
TN
|
$298,665
|
7.5%
|
|
$1,597
|
1.5%
|
Providence,
RI
|
$347,547
|
9.3%
|
-10.3%
|
$1,609
|
8.1%
|
Milwaukee,
WI
|
$207,397
|
10.4%
|
|
$1,213
|
3.1%
|
Jacksonville,
FL
|
$245,567
|
7.3%
|
33.9%
|
$1,400
|
5.7%
|
Memphis,
TN
|
$169,835
|
10.2%
|
17.1%
|
$1,320
|
9.7%
|
Oklahoma City,
OK
|
$167,714
|
7.0%
|
30.9%
|
$1,103
|
3.7%
|
Louisville,
KY
|
$193,584
|
8.3%
|
12.3%
|
$995
|
5.4%
|
Hartford,
CT
|
$255,488
|
7.6%
|
44.3%
|
$1,391
|
5.1%
|
Richmond,
VA
|
$261,391
|
6.2%
|
|
$1,330
|
4.6%
|
New Orleans,
LA
|
$218,950
|
7.5%
|
31.9%
|
$1,409
|
1.9%
|
Buffalo,
NY
|
$190,323
|
9.9%
|
1.8%
|
$1,123
|
4.4%
|
Raleigh,
NC
|
$300,762
|
6.2%
|
8.7%
|
$1,526
|
3.4%
|
Birmingham,
AL
|
$184,509
|
9.1%
|
60.1%
|
$1,104
|
4.4%
|
Salt Lake City,
UT
|
$419,345
|
11.4%
|
|
$1,416
|
3.2%
|
*Table ordered by
market size
|
1
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. Methodologies and all current monthly data at the national,
state, metro, city, ZIP code and neighborhood level can be accessed
at www.zillow.com/research/data.
|
2 Zillow
Group Marketplace, Inc. is a licensed mortgage broker, NMLS
#1303160.
|
About Zillow
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ZG).
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SOURCE Zillow