SEATTLE, Oct. 18, 2018 /PRNewswire/ -- Rents declined
nationwide on an annual basis for the first time in more than six
years.
The median U.S. rent is $1,440,
according to the September Zillow® Real Estate Market
Reporti. That's down 0.2 percent (which translates to
$36 in annual rent) from last
September, the first annual nationwide decrease since July 2012. Rent appreciation slowed for seven
consecutive months before turning negative in September.
Rents decreased on an annual basis in more than half of the
nation's 35 largest markets. The biggest declines in rent were in
Portland, Ore., where rents fell
2.7 percent, and Seattle, where
they fell 2.2 percent. However, some markets are still seeing
rising rents: Riverside, Calif.,
rents increased the most, up 3 percent from last September.
Home value appreciation also slowed in September, growing 7.6
percent from the year prior to a median of $220,100. In August, home values rose 7.8 percent
annually.
Even as home value growth nationwide is slowing, six of the
biggest U.S. housing markets saw double-digit appreciation, led by
San Jose, where the median home
value increased by 20.9 percent. Even that is slower appreciation
than San Jose has seen in recent
months – in June, home values there were up 25.4 percent annually.
In contrast, Washington, D.C.,
homes saw the smallest appreciation, gaining 3.7 percent
annually.
The slowdown in home value appreciation could benefit home
shoppers, but it comes as mortgage rates have seen a sharp increase
since the beginning of the year. The higher interest rates have
eroded most of the benefits from slower home value growth as
mortgage payments for the median-valued U.S. home are growing more
than twice as fast as home valuesii.
"Today's data are yet another signal that the housing market is
easing toward a more normal, sustainable pace after the frenzy of
the past three years," said Zillow Senior Economist Aaron Terrazas. "With slowing rents and home
value growth, searching for a new home should be somewhat less
competitive than it was a year ago, giving renters and buyers a bit
of breathing room. Rents remain high by historic standards, but
September's modest annual decline in rents should ease some of the
pressure pushing higher-income renters to buy. And though home
value appreciation is slowing, homes are more expensive than ever,
making it difficult for first-time buyers to save for a down
payment to break into the market. Housing plays a central role in
most people's finances, but for people already in their homes with
fixed mortgages, there's minimal spillover. For renters, slower
rent growth is welcome news and will put more spending money in
their already stretched pockets. The slowdown in new construction
is more worrisome for the overall economy: Home building has been a
net contributor to economic growth and employment, but rising costs
mean that it could shift toward a drag in the future."
The number of homes for sale declined 1.9 percent in September,
which was the 44th consecutive month of falling inventory. But it
was the smallest annual decrease since early 2015, another sign of
the housing market cooling from its recent frenetic pace. About
two-thirds of the nation's largest markets are seeing inventory
increase, including some recently hot markets like Portland, Ore., Seattle, and the San
Francisco Bay Area.
Mortgage rates on Zillowiii ended the month at 4.5
percent, slightly lower than the high point of 4.56 percent reached
a few days prior. At the end of September, mortgage rates were 75
percentage points higher than they were at the beginning of the
year. 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,
September
2018
|
ZHVI
Year-
over-
Year
Change
|
Zillow Rent
Index,
September
2018
|
ZRI
Year-
over-
Year
Change
|
Inventory
Year-
over-Year
Change
|
United
States
|
$ 220,100
|
7.6%
|
$ 1,440
|
-0.2%
|
-1.9%
|
New York,
NY
|
$ 431,000
|
5.2%
|
$ 2,370
|
-1.9%
|
5.2%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$ 647,100
|
5.4%
|
$ 2,750
|
0.8%
|
29.9%
|
Chicago,
IL
|
$ 222,200
|
5.3%
|
$ 1,635
|
-1.9%
|
2.7%
|
Dallas-Fort Worth,
TX
|
$ 233,200
|
10.7%
|
$ 1,594
|
-0.6%
|
14.4%
|
Philadelphia,
PA
|
$ 229,300
|
4.7%
|
$ 1,566
|
-1.7%
|
-8.7%
|
Houston,
TX
|
$ 200,900
|
6.3%
|
$ 1,548
|
0.1%
|
0.6%
|
Washington,
DC
|
$ 401,000
|
3.7%
|
$ 2,133
|
-0.9%
|
0.8%
|
Miami-Fort
Lauderdale, FL
|
$ 278,400
|
8.0%
|
$ 1,855
|
0.1%
|
4.8%
|
Atlanta,
GA
|
$ 209,700
|
12.3%
|
$ 1,394
|
0.7%
|
-9.4%
|
Boston, MA
|
$ 458,000
|
6.2%
|
$ 2,367
|
-1.6%
|
16.7%
|
San Francisco,
CA
|
$ 961,200
|
9.8%
|
$ 3,399
|
-0.6%
|
40.5%
|
Detroit,
MI
|
$ 157,200
|
9.2%
|
$ 1,193
|
0.3%
|
6.7%
|
Riverside,
CA
|
$ 362,000
|
6.4%
|
$ 1,899
|
3.0%
|
21.8%
|
Phoenix,
AZ
|
$ 258,300
|
7.3%
|
$ 1,356
|
0.4%
|
-6.2%
|
Seattle,
WA
|
$ 486,600
|
7.4%
|
$ 2,169
|
-2.2%
|
47.3%
|
Minneapolis-St Paul,
MN
|
$ 263,300
|
6.8%
|
$ 1,638
|
0.5%
|
-1.9%
|
San Diego,
CA
|
$ 589,200
|
5.9%
|
$ 2,541
|
0.0%
|
47.1%
|
St. Louis,
MO
|
$ 163,100
|
5.4%
|
$ 1,139
|
-1.2%
|
-4.3%
|
Tampa, FL
|
$ 208,400
|
9.9%
|
$ 1,390
|
1.4%
|
3.3%
|
Baltimore,
MD
|
$ 265,600
|
4.5%
|
$ 1,740
|
-0.2%
|
-0.2%
|
Denver, CO
|
$ 398,400
|
6.2%
|
$ 2,055
|
0.0%
|
6.3%
|
Pittsburgh,
PA
|
$ 142,300
|
7.1%
|
$ 1,085
|
-1.0%
|
-15.4%
|
Portland,
OR
|
$ 391,400
|
4.9%
|
$ 1,833
|
-2.7%
|
18.0%
|
Charlotte,
NC
|
$ 199,400
|
10.5%
|
$ 1,293
|
0.0%
|
0.4%
|
Sacramento,
CA
|
$ 400,600
|
4.8%
|
$ 1,842
|
1.8%
|
17.2%
|
San Antonio,
TX
|
$ 187,800
|
6.1%
|
$ 1,330
|
-1.1%
|
11.0%
|
Orlando,
FL
|
$ 231,000
|
9.7%
|
$ 1,449
|
1.0%
|
-2.8%
|
Cincinnati,
OH
|
$ 164,500
|
7.2%
|
$ 1,277
|
-0.4%
|
-2.3%
|
Cleveland,
OH
|
$ 142,700
|
6.4%
|
$ 1,140
|
-1.0%
|
-7.0%
|
Kansas City,
MO
|
$ 185,500
|
9.1%
|
$ 1,264
|
-1.4%
|
0.5%
|
Las Vegas,
NV
|
$ 273,800
|
15.4%
|
$ 1,305
|
1.4%
|
N/A
|
Columbus,
OH
|
$ 184,200
|
7.9%
|
$ 1,336
|
0.4%
|
-8.1%
|
Indianapolis,
IN
|
$ 157,200
|
11.0%
|
$ 1,195
|
-1.2%
|
N/A
|
San Jose,
CA
|
$
1,288,700
|
20.9%
|
$ 3,499
|
-0.9%
|
138.1%
|
Austin, TX
|
$ 300,600
|
6.6%
|
$ 1,683
|
-1.6%
|
3.2%
|
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/research/data.
|
ii https://www.zillow.com/research/mortgage-payments-21610/
|
iii Mortgage rates for a 30-year
fixed mortgage
|
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SOURCE Zillow