SEATTLE, Dec. 6, 2016 /PRNewswire/ -- Nearly all
housing experts surveyed last month in Zillow's quarterly survey
agreed short-term home rentals like those offered on Airbnb® and
HomeAway® do not have a meaningful and large[i] impact on housing
affordability, according to the latest Zillow® Home Price
Expectations (ZHPE) Survey.
Respondents to the quarterly survey, sponsored by Zillow and
conducted by Pulsenomics LLC[ii], were asked about the impact of
short-term home rentals[iii] on supply and housing affordability.
Half of the experts surveyed said the impact is meaningful, but
small[iv]. Just over 40 percent said the impact is not
meaningful[v], and about 5 percent said short-term home rentals
have a large impact on housing affordability. Just 3.8 percent
responded as unsure.
Cities across the country are debating the role short-term
rentals play in housing affordability. One view suggests short-term
rentals subtract from the supply of long-term rental homes and
contribute to rising rents. Others argue short-term rental units
give homeowners an additional source of income, allowing them to
more easily afford a monthly mortgage payment.
"Cities across the country are grappling with housing
affordability issues, especially in places with rapidly rising
rents and home values," said Zillow Chief Economist Dr.
Svenja Gudell. "In some hot West
Coast markets, it's not uncommon for renters to spend 40 percent or
more of their income on a monthly rental payment, when historically
that number was much lower. Inventory plays a large role in this
affordability crisis; there simply aren't enough rentals on the
market to keep prices low. Clearly experts aren't convinced that
short-term rentals are the cause of our problem."
Only 7 percent of homeowners rent out, or are planning to rent
out, all or a portion of their primary residence, according to the
Zillow Group Report on Consumer Housing Trends.
Overall, the experts surveyed – which include economists and
researchers -- said they expect home price appreciation to be at
almost 5 percent by the end of 2016, and slow down to 3.6 percent
by the end of next year. Zillow forecasts rents across the U.S. to
appreciate 1.6 percent from October
2016 to October 2017.
"More than 90 percent of the 111 panelists who participated in
this quarter's survey expect home value growth to be slower next
year, and more than 85 percent of them foresee home value
appreciation rates flat or lower compared to 2016 in every year
through 2021," said Pulsenomics founder Terry Loebs. "While those figures
represent a clear consensus that home value growth will moderate in
the coming years, there is no consensus concerning the pace of the
expected deceleration. For example, the most optimistic
experts project that U.S. home value appreciation will average more
than 4 percent annually through 2021, while the most pessimistic
expect an average annual rate of just 1.1 percent for 2017 and
beyond."
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.
About Pulsenomics:
Pulsenomics LLC (www.pulsenomics.com) is an independent research
and consulting firm that specializes in data analytics, new product
and index development for institutional clients in the financial
and real estate arenas. Pulsenomics also designs and manages expert
surveys and consumer polls to identify trends and expectations that
are relevant to effective business management and monitoring
economic health. Pulsenomics LLC is the author of The Home Price
Expectations Survey™, The U.S. Housing Confidence Survey, and The
U.S. Housing Confidence Index. Pulsenomics®, The Housing
Confidence Index™, and The Housing Confidence Survey™ are
trademarks of Pulsenomics LLC.
Airbnb is a registered trademark of Airbnb, Inc. HomeAway
is a registered trademark of HomeAway, Inc.
[i] Meaningful and large is defined as: short-term rentals
significantly reduce the supply of long-term rental units and are
compounding today's rent affordability problems.
[ii] This edition of the Zillow® Home Price Expectations Survey
surveyed 111 experts between October 28 and
November 15, 2016. The survey was conducted by Pulsenomics
LLC on behalf of Zillow, Inc. and asked the experts about their
expectations for the housing market.
[iii] Short-term home rentals are classified as a full apartment,
single-family home, or auxiliary unit. A short-term room rental is
classified as a room in an otherwise occupied unit.
[iv] Meaningful but small is defined as: short-term rentals reduce
the supply of long-term rental units only marginally and contribute
little to today's rent affordability problems.
[v] Not meaningful is defined as: short-term rentals do not have a
meaningful impact on the supply or affordability of standard,
long-term rental units.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/experts-short-term-home-rentals-have-little-to-no-impact-on-housing-affordability-300373329.html
SOURCE Zillow