SEATTLE, March 19, 2021 /PRNewswire/ -- Home values
continued their march upward in February, matching record monthly
growth from months prior, according to Zillow's February Market
Report.[i] While home sales and appreciation soared over the course
of the pandemic, rent growth slowed, seemingly a boost for rent
affordability. However, it was often the more-expensive areas of
metros that softened the most, providing little respite for renters
in lower-priced areas.
Rents have largely flatlined nationally during the pandemic and
fallen significantly in several expensive markets, but the cuts did
not reach all renters equally. While dropping rents could have
provided relief to lower-income households who have been
disproportionately impacted by the pandemic, rent has remained
stubbornly high in more-affordable areas, a new Zillow®
analysis shows.
"While the pandemic has cut into demand for rental housing, that
has only translated into declining rents in expensive markets, and
most acutely at the top-end of those markets," said Zillow senior
economist Jeff Tucker. "This past
year saw widespread adoption of work-from-home policies, especially
for higher-income renters who previously paid top dollar for
proximity to their workplace. Demand for these rentals took a hit
as many leapt into homeownership, while the flow of new renters
entering these sub-markets dried up, at least temporarily."
In the New York metro area, for
example, rents in wealthier neighborhoods are down 11.6% year over
year, but they're up 1.8% in the least-expensive areas. In
Atlanta, like many other
more-affordable metros where rent has risen since last February,
the increases have been biggest in the least-expensive ZIP codes,
putting added financial pressures on vulnerable renters.
Rents across the U.S. are showing real signs of recovery.
Typical rents grew substantially on a monthly basis for the second
month in a row, posting 0.4% gains after a 0.5% rise in January,
lending credence to the idea that rents have bottomed out and are
on an upward swing. Still, rents are up just 0.5% year over year,
well behind the 3.7% annual pace they were growing in February 2020, illustrating the long road ahead
to a full pre-pandemic recovery.
Home values continue record-setting rise
The typical
U.S. home value rose 1.1% in February to $272,446, maintaining the lightning-fast speed of
month-over-month growth seen in both January and December. This is
the fastest monthly appreciation in Zillow records reaching back to
1996, and still above the previous high of 1% set in the summer of
2005.
Annual home value growth across the U.S. jumped from 9.1% in
January to 9.9% in February, the highest yearly appreciation since
April of 2006 and an increase of $24,473 for the typical U.S. home.
For-sale housing inventory remains lower than a year earlier, as
it did throughout 2020 largely due to a fast pace of sales.
Inventory fell 8% from January, and is down 30.3% year over
year.
"Home price appreciation kept up its breakneck pace in February,
as a wave of early-bird shoppers competed furiously over a very
limited inventory offering," said Tucker. "Monthly price growth
accelerated further in most large metros in February, suggesting
that buyers still have a lot of gas in the tank to keep pushing
prices higher."
Mortgage rates listed by third-party lenders on Zillow rose from
a monthly low of 2.58% on February 10
to 2.98% as the month ended. While the streak of record-low rates
may be over, rates remain very low by historical standards --
mortgage rates ended February 2020 at
3.91%. Zillow's real-time mortgage rates are based on thousands of
custom mortgage quotes submitted daily to anonymous borrowers on
the Zillow Group Mortgages site by third-party lenders and reflect
recent changes in the market.[ii]
Metropolitan
Area*
|
Zillow Home
Value Index,
Feb. 2021
|
ZHVI - YoY
Change,
Feb. 2021
(%)
|
ZHVI - YoY
Change,
Feb. 2021
($)
|
Zillow
Observed
Rent Index,
Feb. 2021
|
ZORI - YoY
Change,
Feb. 2021
(%)
|
ZORI - YoY
Change,
Feb. 2021
($)
|
United
States
|
$272,446
|
9.9%
|
$24,473
|
$1,708
|
0.5%
|
$9
|
New York,
NY
|
$520,587
|
8.3%
|
$40,102
|
$2,471
|
-9.4%
|
-$257
|
Los Angeles-Long
Beach-Anaheim, CA
|
$761,635
|
9.6%
|
$67,020
|
$2,472
|
-0.8%
|
-$20
|
Chicago,
IL
|
$263,185
|
7.6%
|
$18,544
|
$1,634
|
-3.0%
|
-$50
|
Dallas-Fort Worth,
TX
|
$278,259
|
8.9%
|
$22,774
|
$1,519
|
2.2%
|
$32
|
Philadelphia,
PA
|
$280,522
|
11.3%
|
$28,531
|
$1,583
|
2.3%
|
$36
|
Houston,
TX
|
$235,792
|
8.1%
|
$17,684
|
$1,391
|
-0.1%
|
-$1
|
Washington,
DC
|
$483,254
|
9.5%
|
$41,761
|
$1,979
|
-3.8%
|
-$79
|
Miami-Fort
Lauderdale, FL
|
$326,457
|
7.8%
|
$23,738
|
$1,937
|
3.4%
|
$63
|
Atlanta,
GA
|
$269,997
|
10.6%
|
$25,981
|
$1,615
|
6.3%
|
$96
|
Boston, MA
|
$545,895
|
10.3%
|
$50,802
|
$2,326
|
-5.5%
|
-$135
|
San Francisco,
CA
|
$1,192,921
|
5.4%
|
$60,861
|
$2,831
|
-9.1%
|
-$285
|
Detroit,
MI
|
$202,879
|
11.0%
|
$20,028
|
$1,276
|
7.3%
|
$87
|
Riverside,
CA
|
$441,324
|
13.0%
|
$50,666
|
$2,137
|
9.5%
|
$186
|
Phoenix,
AZ
|
$339,878
|
18.3%
|
$52,539
|
$1,547
|
8.9%
|
$126
|
Seattle,
WA
|
$601,735
|
13.1%
|
$69,565
|
$1,854
|
-5.8%
|
-$115
|
Minneapolis-St Paul,
MN
|
$323,661
|
9.0%
|
$26,845
|
$1,549
|
-0.2%
|
-$3
|
San Diego,
CA
|
$702,933
|
14.2%
|
$87,664
|
$2,380
|
4.2%
|
$97
|
St. Louis,
MO
|
$198,709
|
9.3%
|
$16,901
|
$1,110
|
3.9%
|
$42
|
Tampa, FL
|
$261,314
|
13.9%
|
$31,850
|
$1,593
|
7.5%
|
$111
|
Baltimore,
MD
|
$323,406
|
9.2%
|
$27,275
|
$1,635
|
2.3%
|
$37
|
Denver, CO
|
$496,944
|
10.0%
|
$45,228
|
$1,697
|
0.2%
|
$3
|
Pittsburgh,
PA
|
$179,774
|
10.7%
|
$17,425
|
$1,205
|
1.8%
|
$21
|
Portland,
OR
|
$464,988
|
10.6%
|
$44,563
|
$1,628
|
1.4%
|
$22
|
Charlotte,
NC
|
$273,202
|
11.8%
|
$28,865
|
$1,514
|
2.8%
|
$41
|
Sacramento,
CA
|
$489,607
|
12.3%
|
$53,610
|
$1,882
|
7.5%
|
$131
|
San Antonio,
TX
|
$225,999
|
7.9%
|
$16,588
|
$1,278
|
1.6%
|
$20
|
Orlando,
FL
|
$276,596
|
7.7%
|
$19,712
|
$1,600
|
2.4%
|
$37
|
Cincinnati,
OH
|
$211,922
|
13.1%
|
$24,564
|
$1,261
|
5.6%
|
$67
|
Cleveland,
OH
|
$177,598
|
11.6%
|
$18,446
|
$1,151
|
4.1%
|
$45
|
Kansas City,
MO
|
$233,102
|
11.7%
|
$24,373
|
$1,188
|
4.8%
|
$54
|
Las Vegas,
NV
|
$320,222
|
8.6%
|
$25,339
|
$1,455
|
7.6%
|
$103
|
Columbus,
OH
|
$237,025
|
11.1%
|
$23,593
|
$1,282
|
5.8%
|
$70
|
Indianapolis,
IN
|
$205,859
|
12.2%
|
$22,349
|
$1,237
|
6.9%
|
$80
|
San Jose,
CA
|
$1,325,899
|
12.8%
|
$150,961
|
$2,840
|
-8.3%
|
-$258
|
Austin, TX
|
$408,106
|
14.5%
|
$51,552
|
$1,474
|
-1.0%
|
-$15
|
Virginia Beach,
VA
|
$267,161
|
8.8%
|
$21,628
|
$1,380
|
6.5%
|
$84
|
Nashville,
TN
|
$310,812
|
9.6%
|
$27,208
|
$1,600
|
1.6%
|
$25
|
Providence,
RI
|
$363,298
|
13.1%
|
$41,968
|
$1,606
|
9.8%
|
$144
|
Milwaukee,
WI
|
$224,157
|
12.6%
|
$25,124
|
$1,230
|
2.8%
|
$33
|
Jacksonville,
FL
|
$257,266
|
10.1%
|
$23,659
|
$1,375
|
6.6%
|
$85
|
Memphis,
TN
|
$175,627
|
11.6%
|
$18,319
|
$1,381
|
9.3%
|
$118
|
Oklahoma City,
OK
|
$171,597
|
8.0%
|
$12,696
|
$1,113
|
3.9%
|
$42
|
Louisville-Jefferson
County, KY
|
$200,197
|
9.1%
|
$16,751
|
$1,072
|
4.4%
|
$45
|
Hartford,
CT
|
$263,441
|
11.1%
|
$26,216
|
$1,423
|
5.3%
|
$71
|
Richmond,
VA
|
$272,653
|
8.9%
|
$22,387
|
$1,295
|
4.1%
|
$51
|
New Orleans,
LA
|
$226,517
|
8.4%
|
$17,476
|
$1,263
|
4.6%
|
$55
|
Buffalo,
NY
|
$195,939
|
12.4%
|
$21,586
|
$1,157
|
6.0%
|
$66
|
Raleigh,
NC
|
$314,170
|
10.2%
|
$29,035
|
$1,494
|
3.0%
|
$44
|
Birmingham,
AL
|
$192,094
|
10.4%
|
$18,172
|
$1,140
|
5.0%
|
$54
|
Salt Lake City,
UT
|
$440,100
|
15.1%
|
$57,690
|
$1,421
|
4.3%
|
$58
|
*Table ordered by market size
About Zillow Group
Zillow Group, Inc.
(NASDAQ: Z and ZG) is reimagining real estate to make it easier to
unlock life's next chapter.
As the most-visited real estate website in the United States, Zillow® and its affiliates
offer customers an on-demand experience for selling, buying,
renting or financing with transparency and nearly seamless
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dozens of markets across the country, allowing sellers control over
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our customers with an easy option to get pre-approved and secure
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Zillow Group's brands, affiliates and subsidiaries include
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[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] Zillow Group Marketplace, Inc. is a licensed mortgage
broker, NMLS #1303160.
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SOURCE Zillow