Rents are Rising in the Suburbs

19 May

Rents are Rising in the Suburbs

SEATTLE, May 19, 2017 /PRNewswire/ — As rent becomes more costly, renters are starting to consider cheaper housing options outside downtown cores, prompting rent payments to go up faster in the suburbs than in cities, according to a fresh Zillow® report. For the very first time in four years, suburban rents are rising faster than urban rents.

An upsurge in multifamily construction has slowed rent growth over the national country, with rents rising at their slowest pace in five years. The suburbs often offer larger apartments and much more single-family homes for rent with an increase of space — about 19 percent of most single-family homes in the U.S. are rentals, from 13 percent in 2005 up.

In the U.S., the median monthly cost of a suburban rental is up about 2.5 percent year-over-year, as the median cost of an urban rental is 2 up.3 percent. Year at the moment last, the median urban rental price was up 5 percent year-over-year, while median suburban rental prices were up 3 percent.

The trend is more pronounced in booming housing markets where rent affordability is worsening. Rents in the Nashville, San Francisco and Seattle metro areas are growing faster in the suburbs than in cities as rising costs force renters from the city, increasing demand in the suburbs. In the last decade, the share of income necessary for the median rent payment in the San Francisco metro has increased from 34 percent to 44 percent. In the Seattle metro, the share has increased from 26 percent to 32 percent.

Expensive coastal cities are coming off in regards to a decade of rising rents rapidly. Years of increases have pushed urban living out of grab many renters, who could be selecting a longer commute in trade for cheaper rental payments. Rent affordability is really a significant issue for renters over the national country, and in lots of major metros, the share of income had a need to pay rent well surpasses 30 %.

“Because walkable urban centers near amenities are usually a large draw for renters, you’d expect rents to go up faster in the town than in the suburbs — that is exactly what we have been seeing until very recently,” said Zillow Chief Economist Dr. Svenja Gudell. “But a small number of factors are helping turn the tables and starting to push suburban rents up at an increased clip. Included in these are deteriorating rental affordability in expensive urban cores; new apartments, albeit high-end ones, opening downtown in comparison to few in outlying areas relatively; and preferences among some renters toward the area provided by single-family homes in the suburbs. Rents themselves are low in the suburbs still, but if demand grows for suburban supply and rentals continues to lag, that will begin to change also. As more urban renters proceed to the suburbs in coming years formerly, we’ll likely start to see more apartment buildings and walkable amenities showing up in those communities.”

The price of an urban rental in Nashville is up 1.year 7 percent since this time last, however the price of accommodations in the suburbs is up almost 5 percent, with the median price of suburban rentals almost $500 significantly less than an urban rental, despite many suburban rentals offering more space. Rents in Seattle are growing strongly over the metro, however the median price of suburban rentals keeps growing faster compared to the price of urban rentals by about 2 percentage points.

In San Francisco, urban rents are 0 down. year 4 percent since this time around last, but rents in the suburbs are 2 up.6 percent. The median rent price of a suburban rental is approximately $350 significantly less than an urban rental in San Francisco.

Metropolitan Area

Suburban Zillow
Rent Index
i
(ZRI)

Suburban
ZRI YoY
Change

Urban ZRI

Urban
ZRI YoY
Change

Metro Rental
Affordability
ii

Percent
Single-
Family
Homes as
Rentals

United States

$                    1,550

2.5%

$       1,830

2.3%

29.2%

16.8%

New York/ New Jersey

$                    2,535

3.3%

$       2,347

0.7%

40.5%

10.5%

Los Angeles-Long Beach-Anaheim, CA

$                    2,747

5.2%

$       2,662

4.9%

48.5%

24.5%

Chicago, IL

$                    1,682

0.1%

$       1,610

-1.4%

29.8%

12.8%

Dallas-Fort Worth, TX

$                    1,606

4.5%

$       2,174

3.3%

29.9%

17.0%

Philadelphia, PA

$                    1,745

1.0%

$       1,208

2.1%

28.0%

14.9%

Houston, TX

$                    1,558

-0.9%

$       1,591

-1.9%

29.9%

16.0%

Washington, DC

$                    2,127

0.1%

$       2,450

1.2%

26.5%

14.7%

Miami-Fort Lauderdale, FL

$                    1,931

4.2%

$       1,844

1.0%

n/a

20.8%

Atlanta, GA

$                    1,358

3.7%

$       1,861

7.1%

25.4%

19.3%

Boston, MA

$                    2,370

4.4%

$       2,492

1.6%

34.3%

8.5%

San Francisco, CA

$                    3,231

2.6%

$       3,576

-0.4%

43.8%

20.4%

Detroit, MI

$                    1,302

2.6%

$          749

-0.3%

25.5%

16.1%

Riverside, CA

$                    1,822

3.2%

$       1,306

3.4%

36.2%

24.8%

Phoenix, AZ

$                    1,379

3.7%

$       1,221

3.6%

27.1%

22.1%

Seattle, WA

$                    2,105

8.2%

$       2,452

6.3%

32.0%

16.5%

Minneapolis-St Paul, MN

$                    1,626

3.2%

$       1,597

5.3%

26.0%

10.6%

San Diego, CA

$                    2,553

3.4%

$       2,352

4.1%

42.0%

25.2%

St. Louis, MO

$                    1,217

0.3%

$          971

3.1%

23.1%

14.1%

Tampa, FL

$                    1,390

4.1%

$       1,281

4.4%

32.2%

19.2%

Baltimore, MD

$                    1,785

0.1%

$       1,253

-3.0%

28.0%

16.3%

Denver, CO

$                    2,027

1.2%

$       1,993

2.1%

33.0%

15.9%

Pittsburgh, PA

$                    1,121

-2.6%

$       1,002

0.1%

23.0%

13.7%

Portland, OR

$                    1,854

6.5%

$       1,898

5.8%

32.6%

16.9%

Charlotte, NC

$                    1,340

3.5%

$       1,839

5.7%

26.7%

17.8%

Sacramento, CA

$                    1,729

4.9%

$       1,884

8.6%

31.3%

23.7%

San Antonio, TX

$                    1,351

1.8%

$       1,145

6.2%

28.4%

19.2%

Orlando, FL

$                    1,441

4.3%

$       1,130

4.5%

31.8%

20.4%

Cincinnati, OH

$                    1,306

2.5%

$       1,059

6.9%

25.4%

14.7%

Cleveland, OH

$                    1,232

1.4%

$          870

0.0%

25.9%

15.3%

Kansas City, MO

$                    1,354

2.0%

$          847

5.2%

23.7%

17.6%

Las Vegas, NV

$                    1,302

2.1%

$       1,110

2.4%

28.2%

28.5%

Columbus, OH

$                    1,360

2.7%

$       1,092

-2.3%

25.6%

18.1%

Indianapolis, IN

$                    1,210

0.0%

$          752

0.4%

25.3%

17.1%

San Jose, CA

$                    3,558

1.1%

$       3,412

0.0%

39.2%

20.2%

Austin, TX

$                    1,727

0.4%

$       2,035

1.6%

29.8%

16.0%

Virginia Beach, VA

$                    1,443

-0.38%

$       1,242

-0.49%

27%

20.3%

Nashville, TN

$                    1,595

4.66%

$       2,067

1.67%

29%

14.5%

Providence, RI

$                    1,676

1.78%

$       1,479

1.36%

31%

10.5%

Milwaukee, WI

$                    1,585

1.47%

$       1,104

4.82%

27%

13.1%

Jacksonville, FL

$                    1,315

1.86%

$          967

1.38%

28%

19.1%

Memphis, TN

$                    1,082

1.30%

$       1,146

2.27%

25%

22.2%

Oklahoma City, OK

$                    1,123

-4.62%

$       1,133

-3.53%

25%

20.5%

Louisville-Jefferson County, KY

$                    1,195

2.89%

$          851

6.20%

25%

14.5%

Hartford, CT

$                    1,641

0.82%

$       1,370

8.68%

26%

7.8%

Richmond, VA

$                    1,353

0.11%

$       1,499

4.14%

26%

18.0%

New Orleans, LA

$                    1,383

-1.54%

$       1,446

-2.52%

34%

17.5%

Buffalo, NY

$                    1,298

-3.19%

$          982

7.38%

27%

9.8%

Raleigh, NC

$                    1,489

2.78%

$       1,317

5.65%

25%

16.5%

Birmingham, AL

$                    1,075

-1.49%

$          961

-0.56%

24%

13.2%

Salt Lake City, UT

$                    1,523

3.64%

$       1,509

6.28%

26%

12.5%

Zillow

Zillow® may be the leading property and rental marketplace focused on empowering consumers with data, inspiration and knowledge round the accepted place they call home, and connecting them with the very best local professionals who is able to help. Furthermore, 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 a lot more than 450 markets at Zillow PROPERTY Research. Zillow sponsors the quarterly zillow Home Price Expectations Survey also, which asks a lot more than 100 leading economists, property experts and investment and market strategists to predict the road of the Zillow Home Value Index on the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow is really a registered trademark of Zillow, Inc.

______________________________
i
The Zillow Rent Index (ZRI) may be the median Rent Zestimate® (estimated monthly rental price) for confirmed geographic area on confirmed day, and includes the worthiness of most single-family residences, condominiums, cooperatives and apartments in Zillow’s database, whether or not they’re listed for rent currently. It really is expressed in dollars. Data is from March 2017.
ii Zillow determines rental affordability by analyzing the existing percentage of a metro area’s median income had a need to spend the money for rent payment on a median-priced rental home or apartment. Data is from 2016 Q4.

SOURCE Zillow

18 May

Could Alexa Be Your Client’s Agent?

Smart speakers could be the latest touch point connecting consumers with property data. Users of Amazon’s Echo can access mortgage calculators and automated valuation tools already. So it is practical that NAR’s Multiple Listing Issues and Policies Committee would commence to investigate policies to steer the development of the new tools relative to the IDX display rules.

Real estate pros should lead just how in applying new technology to the, said Sam DeBord.

Voice-activated technology is now popular increasingly, not only because of its hands-off ease but additionally in an effort to make more info accessible to those people who have disabilities. Although MLS policy doesn’t allow audio delivery of IDX property listing information currently, that could change soon. Miguel Berger, CEO of audio technology company Voiceter Pro, LLC, contacted the MLS Emerging and Technology Issues Advisory Board concerning the “skill” (a term for something comparable to a smartphone app) his company intended to enable consumers to find properties using voice commands spoken to the Amazon Echo device. After initial setup, Alexa will respond verbally with the very best three search email and results that information to the buyer. The business is pursuing similar technology integrations, through Google Home and Microsoft&rsquo namely;s Cortana.

Does Amazon Echo have another in property?

Does Amazon Echo have another in property?

At the REALTORS® Legislative Meetings & Trade Expo in Washington, D.C. week this, the advisory board proposed that the committee look at how rules may be changed to disseminate IDX information to consumers through these smart speakers.
Some expressed concern about possible unintended consequences of the technology. Cathy Libby, CEO of MLS Maine Listings, questioned the way the listings could be prioritized, if a lot more than the original three returned to a user in reaction to their query. “How are those listings determined as as what&rsquo far; s being read to the buyer back?” she asked. She also concerned about industry disintermediation: “Are we eroding the usage of an agent further?”

In the finish, nearly all committee members preferred to handle the issue prior to the technology really will take off proactively. “Would you like broker members to create the very best new technology, or would you like somebody who isn’t a brokerage building new technology?” said Sam DeBord of Coldwell Banker Danforth in Seattle, who expressed favor for the development of a fresh policy. “We fall behind the curve whenever we hold our brokers back.”

Meg White

Meg White may be the managing editor for REALTOR® Magazine and administrator of the magazine’s Weekly Book Scan blog. Contact her at mwhite[at]realtors.org.

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18 May

U.S. Homeowners Can Spend $15,000 in Hidden Costs to market a homely house

SEATTLE and SAN FRANCISCO, May 18, 2017 /PRNewswire/ — Nationally, U.S. homeowners spend $15,190 typically in hidden or extra costs connected with selling their home, according to a fresh analysis from Zillow® and Thumbtacki. Since most (63 percent) of today’s sellers haven’t sold a home before, a few of these costs could come as a surpriseii.

To help with budgeting, Thumbtack and zillow calculated a few common, but overlooked often, seller expenses including telemarketer and taxes commissions, along with five optional home prep projects.    

More than eight out of 10 home sellers make improvements before listingiii. Although some sellers would rather complete these projects themselves, those that outsource can get to spend a lot more than $2,650 to cover staging nationally, rug cleaning, interior painting, lawn house and care cleaning – five of the very most popular seller home prep projects. Labor costs vary by region significantly, so sellers in Los Angeles pay typically $4,000 for exactly the same projects, in comparison to sellers in Columbus, Ohio, who pay $1,500.

The two largest closing costs are agent commissions and generally in most states, transfer or sales taxes. Nationally, sellers spend $12,532 for both closing costs on the median home. Being that they are percentages of the home’s sale price, sellers in hot coastal markets like San Francisco pay $51,520 on the median home, the best of the metros analyzed. Sellers in Indianapolis pay minimal ($8,238) as home values are lower and hawaii does not have any transfer tax.

From title insurance to escrow fees, sellers have the effect of a number of other smaller closing costs. Though selling a home costs money even, most (73 percent) sellers remain content with the transactioniv. To estimate potential profit, sellers may use Zillow’s Sale Proceeds Calculator. It factors in the home’s sale price, mortgage balance and agent commissions, and also other common seller fees.

“One of the primary regrets sellers have isn’t starting the procedure early enough,” says Jeremy Wacksman, Zillow Group chief marketing officer. “For all those likely to sell this season, invest some time to research all of the costs you will be in charge of and how they could affect your profit, or cover the next home even. Partner with an excellent agent who is able to help the nuances are understood by you in your market – from what taxes or closing costs you need to expect, to which home renovation projects might help attract the proper buyer.”

“Sellers have to examine these additional, often necessary costs when likely to put their home out there,” says Lucas Puente, Thumbtack economist. “While it’s clear these costs vary widely, quite often the simplest way to make sure a home is ready to be sold would be to hire local fully, skilled professionals to greatly help with basic home projects.”

More information regarding Zillow and Thumbtack’s Hidden Costs of Selling Report can be acquired on Zillow’s blog, Porchlight.

Metro Area

Median
Home Value
(ZHVI), March
2017

Estimated
Closing Costs

(commissions
and state
transfer tax on
median home)

Basic Home Prep
Costs

(rug cleaning,
interior painting,
lawn care, home
staging and home
cleaning)

Total Hidden
Costs of Selling

United States

$ 196,500

$ 12,532

$ 2,658

$ 15,190

Los Angeles-Long Beach-Anaheim, CA

$ 601,900

$ 36,776

$4,032

$ 40,808

Chicago, IL

$ 208,400

$ 12,817

$2,349

$ 15,166

Dallas-Fort Worth, TX

$ 205,300

$ 12,318

$2,011

$ 14,329

Philadelphia, PA

$ 216,000

$ 15,120

$2,058

$ 17,178

Houston, TX

$ 174,500

$ 10,470

$3,290

$ 13,760

Washington, DC

$ 382,900

$ 27,186

$2,481

$ 29,667

Miami-Fort Lauderdale, FL

$ 249,700

$ 16,730

$2,749

$ 19,479

Atlanta, GA

$ 175,800

$ 10,724

$2,469

$ 13,193

Boston, MA

$ 419,900

$ 27,126

$2,708

$ 29,833

San Francisco, CA

$ 843,200

$ 51,520

$3,585

$ 55,105

Detroit, MI

$ 138,700

$ 9,570

$2,229

$ 11,800

Riverside, CA

$ 322,700

$ 19,717

$1,506

$ 21,223

Phoenix, AZ

$ 232,700

$ 13,962

$2,058

$ 16,020

Seattle, WA

$ 426,300

$ 34,232

$3,397

$ 37,629

Minneapolis-St Paul, MN

$ 241,900

$ 15,312

$2,197

$ 17,509

San Diego, CA

$ 532,000

$ 32,505

$2,731

$ 35,236

St. Louis, MO

$ 149,300

$ 8,958

$2,092

$ 11,050

Tampa, FL

$ 183,300

$ 12,281

$1,778

$ 14,059

Baltimore, MD

$ 259,200

$ 16,848

$2,617

$ 19,465

Denver, CO

$ 362,800

$ 21,804

$2,278

$ 24,082

Pittsburgh, PA

$ 135,700

$ 9,499

$2,369

$ 11,868

Portland, OR

$ 359,800

$ 21,588

$1,692

$ 23,280

Charlotte, NC

$ 170,600

$ 11,260

$1,864

$ 13,123

Sacramento, CA

$ 361,000

$ 22,057

$3,140

$ 25,197

San Antonio, TX

$ 158,500

$ 9,510

$1,879

$ 11,389

Orlando, FL

$ 202,900

$ 13,594

$2,594

$ 16,188

Cincinnati, OH

$ 151,300

$ 9,683

$1,966

$ 11,649

Cleveland, OH

$ 132,400

$ 8,474

$1,674

$ 10,148

Kansas City, MO

$ 155,600

$ 9,336

$1,980

$ 11,316

Las Vegas, NV

$ 219,200

$ 13,700

$2,483

$ 16,183

Columbus, OH

$ 161,700

$ 10,349

$1,489

$ 11,838

Indianapolis, IN

$ 137,300

$ 8,238

$2,309

$ 10,547

Austin, TX

$ 267,500

$ 16,050

$2,188

$ 18,238

Zillow

Zillow® may be the leading real rental and estate marketplace focused on empowering consumers with data, inspiration and knowledge round the accepted place they call home, and connecting them with the very best local professionals who is able to help. Zillow serves the entire lifecycle of owning and surviving in a home: buying, selling, renting, financing, remodeling and much more. Along with Zillow.com®, Zillow operates typically the most popular suite of mobile property apps, with an increase of than two dozen apps across all major platforms. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG) and headquartered in Seattle.

zillow and

Zillow.com are registered trademarks of Zillow, Inc.

Thumbtack

Thumbtack is really a local services marketplace that connects customers who have to get things finished with local professionals who is able to help. From painters and plumbers to DJs and fitness trainers, Thumbtack helps an incredible number of customers find the appropriate professional because of their project in over 1,000 categories. This means a lot more than $1 billion in annual revenue for the professionals over the U.S., helping them grow their businesses independently terms. Founded in ’09 2009 and headquartered in San Francisco, Thumbtack is backed by over $250 million in investment from Sequoia Capital, Google Capital, Tiger Global Management, Javelin Investment Baillie and Partners Gifford.

i Zillow and Thumbtack’s Hidden Costs of Selling report considered closing costs (transfer taxes and agent commotions) and many basic home prep costs. Zillow computed transfer taxes utilizing the tax rate for the principal state within each metro area (where metro areas cross a number of state lines), that have been put on the median home value for that area then. Zillow also assumed 6 percent for agent commissions and applied it to the median home value for every metro area. For the essential seller home prep costs, Thumbtack viewed thousands of quotes from small company professionals round the country and determined the common cost for every expense within the selected metros. For the purposes of the analysis, rug cleaning, interior painting, lawn care, home staging and house cleaning were defined as five of the very most popular home maintenance-related projects completed by Thumbtack users ahead of selling a home.

ii Based on the 2016 Zillow Group Report on Consumer Housing Trends. 
iii Based on the 2016 Zillow Group Report on Consumer Housing Trends. 
iv Based on the 2016 Zillow Group Report on Consumer Housing Trends.

SOURCE Zillow

For more info: Alexa Fiander, Zillow, press@zillow.com, or Justine Gananian, Thumbtack, justine@thumbtack.com

12 May

Orlando is the greatest Market for First-Time Homebuyers; West Coast Markets Tougher for the First-Time Buyer

SEATTLE, May 12, 2017 /PRNewswire/ — First-time homebuyers could have better luck in the Southeast if they’re searching for a less expensive home, in accordance with a fresh analysis from Zillow®. Orlando and Tampa top the list because the best markets for first-time buyers, with affordable homes and much more inventory than other markets relatively. Also making the list are San Antonio, Atlanta, and Dallas. These markets are less competitive, year because they commence to accumulate equity and buyers will dsicover strong growth on the next.

Zillow’s set of the very best markets for first-time buyers is founded on five metricsi:

  • Lower median home value for a far more affordable down payment
  • Strong home value forecast being an indicator of creating equity
  • Higher inventory-to-household ratio to fully capture available supply
  • Shorter Breakeven Horizon showing a financial benefit of buying over renting
  • Greater share of listings with price cuts to point a less competitive market

While first-time buyers constitute nearly 1 / 2 of recent buyers, based on the 2016 Zillow Group Report on Consumer Housing Trends, having enough saved for a deposit could possibly be holding first-time buyers back certain markets. A lot more than two-thirds of renters say that saving for a deposit may be the biggest barrier to homeownershipii. In every but three of the 10 best markets for first-time buyers, the median home value is leaner compared to the national median home value, this means they require less overall in advance as a deposit.

The Bay Area and Pacific Northwest have strong job markets, but new buyers could have trouble entering the marketplace because of low inventory and high home prices – buyers in these areas will need to develop a lot more than $70,000 as a deposit. However, those thinking of buying in Florida just need to put about $40,000 down on a median home.

“As millennials reach the normal home buying age, they’re coming into a hardcore housing marketplace with low lots and inventory of competition,” said Zillow Chief Economist Dr. Svenja Gudell. “These markets have significantly more favorable conditions for first-time buyers to become homeowners. More difficult metros aren’t out of grab new buyers, however they should be ready to face a far more competitive buying environment.”

Ten Best Markets for First-Time Homebuyers

1.       Orlando, Fla.
2.       Tampa, Fla.
3.       Indianapolis, Ind.
4.       Las Vegas, Nev.
5.       San Antonio, Texas
6.       Pittsburgh, Pa.
7.       Atlanta, Ga.
8.       Detroit, Mich.
9.       Dallas, Texas
10.     Cleveland, Ohio

A 5 percent deposit in the Bay Area is bigger than a 20 percent deposit in most of the greatest markets for first-time buyers. For buyers who is able to think of a down payment, low inventory and few price cuts make these markets competitive especially.  

First-time buyers will exceed their budget than repeat buyersiii. Zillow Group launched a fresh consumer brand recently, RealEstate.com, targeted at first-time home buyers, that allows them to find and compare homes predicated on an “All-In Monthly Price” which factors in costs like mortgage, property tax and utilities to get a better knowledge of a home’s true cost.  

Metropolitan Area

 Zillow
Home Value
Index
March 2017

Breakeven
Horizon
Q1 2017

 Inventory

 Households

 Annual Forecasted Home Value Appreciation (%)

Share of
Listings with
a Price Cut

Orlando, FL

$202,900

1 year, 11 months

10,344

845,295

3.8

17.4

Tampa, FL

$183,300

1 year, 10 months

14,998

1,166,704

3.2

18.8

Indianapolis, IN

$137,300

1 year, 6 months

7,706

755,100

3.0

13.1

Las Vegas, NV

$219,200

2 years, 1 months

13,012

740,966

4.8

12.0

San Antonio, TX

$158,500

1 year, 11 months

7,444

791,273

3.0

17.2

Pittsburgh, PA

$135,700

1 year, 11 months

10,830

990,355

2.5

14.9

Atlanta, GA

$175,800

1 year, 9 months

28,888

2,028,705

3.1

12.4

Detroit, MI

$138,700

1 year, 7 months

13,919

1,674,251

3.2

12.7

Dallas-Fort Worth, TX

$205,300

1 year, 8 months

16,331

2,479,995

4.4

13.7

Cleveland, OH

$132,400

1 year, 11 months

10,045

849,475

1.8

14.1

Cincinnati, OH

$151,300

1 year, 9 months

6,160

832,607

2.7

14.2

Chicago, IL

$208,400

2 years, 3 months

37,367

3,470,993

2.6

16.7

Kansas City, MO

$155,600

1 year, 8 months

6,616

814,092

2.9

11.6

St. Louis, MO

$149,300

2 years, 4 months

12,373

1,108,303

1.5

15.0

Houston, TX

$174,500

2 years, 4 months

24,960

2,292,992

1.5

17.9

Philadelphia, PA

$216,000

2 years, 7 months

26,597

2,233,752

2.3

17.3

Riverside, CA

$322,700

2 years, 5 months

14,462

1,343,526

3.8

13.4

Charlotte, NC

$170,600

1 year, 10 months

7,793

905,696

3.0

12.0

Miami-Fort Lauderdale, FL

$249,700

2 years, 8 months

46,142

2,077,362

0.6

15.7

Austin, TX

$267,500

2 years, 5 months

6,701

723,914

3.4

15.0

Phoenix, AZ

$232,700

3 years, 0 months

21,607

1,608,722

1.7

20.0

Minneapolis-St Paul, MN

$241,900

2 years, 1 month

9,101

1,354,766

3.5

12.7

Columbus, OH

$161,700

1 year, 9 months

4,858

772,304

3.0

11.2

New York, NY

$411,300

2 years, 6 months

76,798

7,125,065

3.8

11.2

Baltimore, MD

$259,200

2 years, 10 months

11,253

1,037,443

1.8

16.1

Sacramento, CA

$361,000

2 years, 5 months

4,276

809,295

4.7

8.4

Seattle, WA

$426,300

2 years, 3 months

6,181

1,437,222

4.8

5.6

Denver, CO

$362,800

2 years, 5 months

6,130

1,075,919

3.3

9.2

Boston, MA

$419,900

2 years, 9 months

9,903

1,782,655

3.1

10.3

Washington, DC

$382,900

4 years, 6 months

17,478

2,172,310

1.2

13.9

Portland, OR

$359,800

2 years, 11 months

5,306

901,402

2.7

9.8

San Diego, CA

$532,000

4 years, 6 months

5,976

1,113,610

0.9

10.6

Los Angeles-Long Beach-Anaheim, CA

$601,900

4 years, 8 months

17,364

4,315,637

0.8

10.7

San Jose, CA

$986,000

5 years, 1 month

1,596

651,352

0.9

7.0

San Francisco, CA

$843,200

4 years, 11 months

4,155

1,689,907

0.6

6.2

Zillow

Zillow® may be the leading real rental and estate marketplace focused on empowering consumers with data, inspiration and knowledge round the accepted place they call home, and connecting them with the very best local professionals who is able to help. Furthermore, 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 a lot more than 450 markets at Zillow PROPERTY Research. Zillow sponsors the quarterly zillow Home Price Expectations Survey also, which asks a lot more than 100 leading economists, property experts and investment and market strategists to predict the road of the Zillow Home Value Index on the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow is really a registered trademark of Zillow, Inc.

i The First-time Home Buyer Index, which range from 0 to 10, captures a balance of five metrics: low median home values for an inexpensive down payment, a solid home value forecast to point an excellent start to growing equity, a more substantial inventory-to-household ratio to fully capture available supply, a larger share of listings with price cuts to surface less competitive buying experiences, and a faster breakeven to show a solid incentive to get over rent. These five metrics are ordered and metros are scored on a scale from 0 to 10 along a uniform distribution. These five scores are then averaged and the common re-scaled to range between 0 to 10.

iihttps://www.zillow.com/research/down-payment-hurdle-zhar-14790/

iiihttps://www.zillow.com/research/zillow-group-report-2016-13279/#buyercharacter

SOURCE Zillow

4 May

A Picture’s Worth one thousand Words Archives – Zillow Research

Where we live comes with an enormous influence on what we balance the competing demands of living, working and playing. Most of us (well, the majority of us) have to work, and communities with stronger labor markets widen our options. Most of us need a spot to live, too, but housing is more expensive occasionally than in others. And our convenience of play happens of everything left from the fruits of our labor after taxes and housing costs – the purchase price we pay to call home in a civilized society.

4 May

Best Time to Purchase a Home is Late Summer

SEATTLE, Might 4, 2017 /PRNewswire/ — Patience takes care of, for home customers. The optimum time to buy a house is late summer, whenever there are probably the most options and frequent cost cuts.

As summer approaches, overall inventory of virginia homes is down 5.3 % from the year ago[i], signaling another competitive house shopping season for purchasers this season. Even in markets which have seen a recently available uptick in the amount of virginia homes, inventory continues to be well below the degrees of five years back.

A new Zillow® analysis[ii] implies that there are more virginia homes by the end of summer season than at any season, giving buyers the best selection. In most main metros, August had a lot more for-selling listings than any month. In Los Angeles, for example, there have been about 8,000 a lot more virginia homes in August than in April. In Seattle, the distinction was about 5,000 listings.

At once, price cuts tend to be more common as house sellers start to be worried about not really selling their homes. In the united states, 15 % of listings in August experienced price reductions. Generally in most large markets, customers are likely to discover a house with a reduced price in either August or September.

The house shopping process could be stressful for buyers. Typically, buyers save money than four months searching for a house, and put in at the very least two provides before buying, based on the 2016 Zillow Group Report on Consumer Housing Trends. Buyers who’ve been unsuccessful so significantly may find better good fortune in the later a few months of the summertime.

“In that competitive housing marketplace, it’s possible for buyers to obtain frustrated if they are investing in multiple provides without success,” mentioned Zillow Chief Economist Dr. Svenja Gudell. “Customers who start their house search in the springtime may be looking months afterwards – but for those that can wait around it out, the finish of summer provides more favorable conditions. Houses that may have already been overpriced previously in the year will have a cost reduction, and the ones listings approved over in previously months may look much better with a brand new perspective.”

Spring traditionally begins the home purchasing season – most brand new listings to enter the market of these months. April specifically had more brand new listings than any 30 days in 2016.  Nevertheless, shopping in spring could be aggressive, and these homes will sell for reduced. Homes listed in past due spring sell quicker and for a $1,500 premium typically, in accordance with Zillow’s Best Time and energy to List analysis. 

Share of Energetic Listings with a cost Cut – 2016

Metropolitan Area

March

April

May

June

July

August

September

October

United Declares

12.6%

12.8%

12.8%

14.3%

14.4%

15.1%

14.3%

13.0%

New York/Northern New Jersey

11.5%

12.2%

12.3%

13.2%

12.3%

11.9%

12.5%

11.2%

Los Angeles-Long Beach-Anaheim, CA

10.8%

10.3%

10.7%

12.6%

13.2%

14.3%

13.5%

11.9%

Chicago, IL

13.2%

15.9%

16.2%

18.6%

18.6%

19.7%

19.9%

18.2%

Dallas-Fort Really worth, TX

10.6%

11.2%

11.6%

13.7%

15.2%

16.4%

15.4%

14.5%

Philadelphia, PA

17.5%

18.5%

18.1%

20.1%

19.3%

19.0%

21.0%

19.7%

Houston, TX

17.1%

16.5%

14.7%

17.2%

19.1%

18.2%

18.2%

17.2%

Washington, DC

13.4%

15.4%

16.3%

17.8%

17.7%

17.1%

17.2%

16.8%

Miami-Fort Lauderdale, FL

14.1%

13.1%

12.1%

12.4%

11.8%

12.1%

11.8%

10.8%

Atlanta, GA

11.6%

12.1%

12.0%

13.3%

14.1%

14.6%

14.0%

13.6%

Boston, MA

10.8%

11.4%

12.5%

14.3%

13.4%

14.2%

14.6%

16.4%

San Francisco, CA

6.8%

7.6%

9.0%

10.3%

11.2%

12.3%

10.9%

10.1%

Detroit, MI

14.9%

13.9%

14.8%

17.5%

18.9%

20.8%

18.9%

17.6%

Riverside, CA

13.8%

12.5%

11.8%

13.0%

13.5%

14.6%

13.6%

12.8%

Phoenix, AZ

21.6%

19.3%

18.7%

18.7%

18.5%

19.4%

19.3%

19.8%

Seattle, WA

6.3%

7.0%

7.7%

9.3%

10.8%

12.1%

11.7%

9.2%

Minneapolis-St Paul, MN

12.8%

13.0%

13.7%

16.4%

17.2%

18.9%

18.6%

17.3%

San Diego, CA

12.9%

12.6%

12.6%

13.7%

14.9%

15.5%

12.7%

8.3%

St. Louis, MO

14.5%

15.3%

15.3%

17.1%

16.9%

17.9%

17.3%

15.7%

Tampa, FL

16.3%

15.6%

14.0%

14.4%

14.1%

14.6%

15.2%

14.6%

Baltimore, MD

16.1%

17.2%

17.7%

19.1%

19.6%

19.2%

19.9%

19.8%

Denver, CO

8.3%

9.3%

10.4%

13.5%

14.2%

15.3%

12.9%

9.1%

Pittsburgh, PA

14.4%

15.1%

15.7%

16.5%

17.4%

17.8%

17.9%

16.3%

Portland, OR

7.2%

8.2%

9.6%

11.4%

13.2%

15.3%

15.2%

13.0%

Charlotte, NC

11.3%

11.5%

11.5%

12.3%

12.9%

13.5%

11.8%

9.6%

Sacramento, CA

8.7%

9.9%

11.0%

12.3%

14.0%

14.6%

13.0%

8.6%

San Antonio, TX

14.3%

15.2%

15.9%

16.8%

19.4%

20.0%

17.9%

16.9%

Orlando, FL

15.9%

15.7%

13.3%

14.2%

14.8%

14.6%

15.1%

14.1%

Cincinnati, OH

13.5%

14.8%

13.7%

16.1%

16.0%

16.7%

15.8%

13.7%

Cleveland, OH

14.1%

13.6%

13.9%

15.9%

15.9%

17.5%

17.0%

16.2%

Kansas Town, MO

11.7%

11.9%

12.0%

14.2%

15.0%

15.9%

15.3%

14.8%

Las Vegas, NV

13.0%

12.7%

12.1%

12.5%

13.6%

16.0%

15.3%

14.2%

Columbus, OH

11.5%

11.3%

11.5%

12.9%

14.4%

15.3%

14.8%

12.9%

Indianapolis, Within

13.0%

12.3%

13.1%

14.9%

16.0%

17.7%

16.9%

16.3%

San Jose, CA

7.7%

8.5%

9.9%

12.0%

11.9%

13.9%

13.1%

12.1%

Austin, TX

12.4%

13.1%

13.7%

15.3%

17.3%

17.0%

16.8%

14.1%

For the entire data, visit Zillow Research: http://www.zillow.com/research/strategy-best-time-to-buy-15066/

Zillow 
Zillow® may be the leading property and rental marketplace focused on empowering consumers with information, inspiration and knowledge round the place they contact home, and linking them with the very best local professionals who is able to help. Furthermore, Zillow functions an industry-top economics and analytics bureau brought by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her group of economists and information analysts produce extensive casing data and analysis covering a lot more than 450 marketplaces at Zillow PROPERTY Research. Zillow furthermore sponsors the quarterly Zillow House Price Expectations Study, which asks a lot more than 100 top economists, property experts and expense and marketplace strategists to predict the road of the Zillow House Value Index on the next five yrs. Launched in 2006, Zillow is possessed and managed by Zillow Team (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow is really a registered trademark of Zillow, Inc.

[i] https://www.zillow.com/research/march-2017-market-report-14837/
[ii] This analysis analyzed listings upon Zillow in 2016

SOURCE Zillow

28 Apr

Renters Can Buy Without Increasing Their Monthly Housing Costs

SEATTLE, April 28, 2017 /PRNewswire/ — Rent is so high that a typical renter in the U.S. can purchase a home nearly 50 percent more expensive than the median valued home and keep the same monthly housing budget, according to a new Zillow® analysis.

The median rent in the U.S. is $1,416 per month, which is enough to cover the monthly expenses associated with owning a $289,505 home. The median U.S. home value is $196,500.

Rent is more expensive than ever before. Affordability is a growing concern across the country, and rent requires almost half of the median income in some of the nation’s most expensive markets. A mortgage payment is cheaper than a rental payment on a monthly basis, but saving enough money for the down payment is holding back many renters from crossing over into homeownership.

Zillow analyzed the median rent payment in cities across the country to determine how much home a prospective buyer could afford without spending more on a mortgage than they were currently spending on rent. Zillow factored in all monthly homeownership costs, such as property taxes, maintenance and insurancei. In 37 of the 50 cities Zillow analyzed, renters could buy a home worth more than the median valued home in their city without spending more on monthly housing costs.

Renters paying the median rent in Cleveland and Milwaukee can afford to buy a home more than twice as expensive as the local median home value. In Cleveland, prospective buyers can buy a home valued at $174,194 while keeping all monthly housing costs the same — this represents more than 80 percent of homes currently on the market.

San Francisco is one of the only cities in the country where a monthly rental payment would not cover the costs of owning the median valued home. Renters in San Francisco who want to keep monthly expenses the same would have to buy a home valued at $865,857, representing just 23 percent of homes currently on the market. The median home value in the city of San Francisco is over $1 million.

“Renters hesitant to enter the home buying market for fear of not being able to find an affordable home should be encouraged to discover they may have more options than they thought,” said Zillow Chief Economist Dr. Svenja Gudell. “However, it’s worth noting that many of the more affordable homes for sale may be older, smaller and/or located in less-desirable neighborhoods than they might like. The decision between buying and renting is a financial trade-off between saving more each month on a mortgage payment versus spending more on rent but taking advantage of the location and lifestyle amenities urban renting often offers. Recent slowdowns in rent growth may take some of the edge off for renters saving to become homeowners. This is good news, since saving a down payment, qualifying for a loan and finding a home available at a manageable price remain hurdles for millions of aspiring buyers.”

Nearly half of all buyers are entering the market for the first-time, according to the 2016 Zillow Group Report on Consumer Housing Trends. The majority of all buyers stay within the same city when they move.

City

 Zillow Rent
Index
ii
(ZRI),
March 2017

 Zillow Home
Value Index
iii
(ZHVI), March
2017

 Value of Home
Affordable without
Increasing Monthly
Housing Costs

Share of
Available
Inventory

United States

$1,416

$196,500

$289,505

56.8%

New York, NY

$2,372

$650,000

$484,962

28.7%

Los Angeles, CA

$2,863

$622,900

$585,348

27.6%

Chicago, IL

$1,650

$220,900

$337,347

57.1%

Philadelphia, PA

$1,218

$136,100

$249,023

71.9%

Phoenix, AZ

$1,256

$208,600

$256,793

40.6%

Las Vegas, NV

$1,245

$212,500

$254,544

47.5%

San Diego, CA

$2,503

$558,600

$511,745

31.3%

Dallas, TX

$1,393

$163,200

$284,803

24.7%

San Jose, CA

$3,310

$862,800

$676,739

28.3%

Jacksonville, FL

$1,171

$148,400

$239,414

59.1%

San Francisco, CA

$4,235

$1,167,200

$865,857

22.8%

Austin, TX

$1,848

$316,800

$377,829

33.2%

Detroit, MI

$751

$  39,100

$153,544

92.2%

Columbus, OH

$1,150

$127,400

$235,121

71.2%

Memphis, TN

$851

$  80,200

$173,989

73.5%

Charlotte, NC

$1,309

$181,200

$267,629

37.9%

El Paso, TX

$998

$113,800

$204,044

64.5%

Boston, MA

$2,634

$542,100

$538,529

23.4%

Seattle, WA

$2,540

$638,100

$519,310

26.5%

Baltimore, MD

$1,301

$124,100

$265,993

79.2%

Denver, CO

$2,000

$377,500

$408,906

31.2%

Washington, DC

$2,635

$559,200

$538,733

45.3%

Nashville, TN

$1,550

$223,800

$316,902

38.8%

Milwaukee, WI

$1,138

$105,700

$232,667

86.0%

Tucson, AZ

$1,080

$162,000

$220,809

48.1%

Portland, OR

$1,895

$414,800

$387,438

31.3%

Omaha, NE

$1,308

$151,700

$267,424

49.4%

Albuquerque, NM

$1,205

$187,500

$246,366

56.8%

Fresno, CA

$1,256

$209,600

$256,793

55.6%

Sacramento, CA

$1,543

$293,600

$315,471

60.5%

Mesa, AZ

$1,289

$219,100

$263,540

47.2%

Long Beach, CA

$2,459

$548,400

$502,749

46.7%

Kansas City, MO

$1,042

$119,400

$213,040

53.6%

Virginia Beach, VA

$1,562

$255,900

$319,355

57.2%

Colorado Springs, CO

$1,425

$246,800

$291,345

32.2%

Atlanta, GA

$1,510

$206,800

$308,724

46.6%

Miami, FL

$2,093

$299,900

$427,920

45.4%

Oakland, CA

$2,973

$676,900

$607,838

52.8%

Cleveland, OH

$852

$  56,300

$174,194

81.9%

Honolulu, HI

$2,438

$671,800

$498,456

36.5%

Minneapolis, MN

$1,617

$231,200

$330,600

50.3%

Baton Rouge, LA

$1,342

$155,800

$274,376

60.3%

New Orleans, LA

$1,377

$173,800

$281,531

47.0%

Arlington, TX

$1,465

$176,000

$299,523

57.0%

Raleigh, NC

$1,400

$221,000

$286,234

28.0%

Wichita, KS

$947

$121,000

$193,617

57.7%

Tampa, FL

$1,347

$182,700

$275,398

46.3%

Anaheim, CA

$2,642

$560,200

$540,164

31.7%

Santa Ana, CA

$2,490

$493,900

$509,087

42.0%

Aurora, CO

$1,783

$281,000

$364,539

56.0%

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. 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.

________________________________
i This analysis assumes a 20% down payment, and property taxes of 1% of the home value annually, maintenance costs of 1% of the home value annually, and homeowners’ insurance of 0.5% each year.
ii The Zillow Rent Index (ZRI) is the median Rent Zestimate® (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow’s database, regardless of whether they are currently listed for rent. It is expressed in dollars. 
iii The Zillow Home Value Index (ZHVI) is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.

SOURCE Zillow, Inc.

20 Apr

Rents Rise from Slowest Pace in 5 Years

SEATTLE, April 20, 2017 /PRNewswire/ — Rents in the united states rose 0.7 % from final March, the slowest rate of appreciation since November 2012, as new construction begun to meet renter requirement and soften the marketplace. The median rent transaction in the U.S. is currently $1,408, based on the March Zillow® MARKET Reportsi.

Rents within the Bay Region have slowed a lot more than any large metropolitan area in the last year. In San Francisco, rents are down 0.1 % after appreciating almost ten percent annually at the moment this past year. Rents in San Jose were rising at nearly 9 percent annually this past year, but fell 1.1 % in the last year to a median lease transaction of $3,451.

Even in warm West Coast marketplaces, where leasing growth is notoriously solid, rent appreciation is needs to slow. In Seattle, rents are up 6.7 percent, but their speed of appreciation has been slowing since August 2016. Rents in Sacramento are up 4.7 %, but were rising at almost 7 % annually toward the finish of this past year.

Affordability is really a significant concern for renters in the united states, who have experienced increasing rents for years. In lots of major metros, the reveal of income had a need to pay rent properly surpasses the overall rule of not investing more than 30 % of income on casing. In Los Angeles, the median rent transaction takes up almost 1 / 2 of the median revenue, which forces renters to shack up with roommates to make housing less expensive.

“The slowdown within rental appreciating is principally because of new construction finally conference demand, and also outpacing demand in a few areas,” mentioned Zillow’s Chief Economist Dr. Svenja Gudell. “But, rents will be the highest they’ve actually been, weighing seriously on renters’ budgets and rendering it extremely problematic for those renters wishing to become homeowners to save lots of enough cash for a deposit. Generally in most markets, a month-to-month mortgage repayment is more affordable when compared to a monthly rent transaction, however the most difficult facet of home buying for most aspiring property owners is discovering enough cash for the deposit.”

The median home value in the united states is $196,500, up 6.8 percent since this time around last year. Seattle, Tampa, Fla. and Dallas reported the best year-over-year home worth appreciation on the list of 35 largest U.S. metros. In Seattle, house values rose almost 12 % to a median worth of $426,300. Home values in Tampa and Dallas are up about 11 % since this time around last year.

Low inventory is still an issue for home shoppers in the united states — you can find 5 percent fewer houses to choose from when compared to a year back, paving just how for an exceptionally competitive house shopping season.

Minneapolis, Columbus, Ohio and Seattle reported the best drop in inventory on the list of 35 largest U.S. metros. In Minneapolis, you can find 24 percent fewer houses to choose from when compared to a yr ago, and 19.5 percent fewer to select from in Columbus. In Seattle, where home ideals are increasing the fastest, buyers could have 17 percent less homes to pick from when compared to a year ago.

Mortgage rates are lower from their December highs, but nonetheless well above where these were prior to the election. In March, home loan pricesii on Zillow finished at 3.94 %, down from a most of 4.13 %iii. The month low was 3.93 %iv. Zillow’s real-time home loan rates derive from a large number of custom mortgage quotations submitted everyday to anonymous debtors on the Zillow Mortgages web site and reflect the newest changes on the market.

Metropolitan

Area

 Zillow House Value Index[v] (ZHVI)

Year-

over-Year

ZHVI Change

Zillow Lease Index[vi] (ZRI)

Year-

over-

Year ZRI

Change

Year-over-Year

ZRI Alter at

This Time Final

Year

Year-over-

Year

Inventory

Change

United Declares

$                       196,500

6.8%

$             1,408

0.7%

3.3%

-5.3%

New York/

Northern New

Jersey

$                       411,300

7.6%

$             2,386

-1.3%

4.3%

-10.6%

Los Angeles-Long

Beach-Anaheim,

CA

$                       601,900

6.1%

$             2,648

4.4%

4.1%

-7.2%

Chicago, IL

$                       208,400

6.4%

$             1,618

-1.9%

1.6%

-8.7%

Dallas-Fort

Really worth, TX

$                       205,300

11.0%

$             1,569

3.2%

4.6%

5.3%

Philadelphia, PA

$                       216,000

4.4%

$             1,565

0.0%

2.4%

-9.9%

Houston, TX

$                       174,500

3.2%

$             1,544

-2.5%

4.0%

2.7%

Washington, DC

$                       382,900

3.8%

$             2,115

-0.3%

1.4%

-12.2%

Miami-Fort

Lauderdale, FL

$                       249,700

8.7%

$             1,849

-0.6%

5.0%

8.7%

Atlanta, GA

$                       175,800

7.1%

$             1,337

3.2%

4.4%

1.2%

Boston, MA

$                       419,900

7.0%

$             2,351

4.0%

5.4%

-14.0%

San Francisco, CA

$                       843,200

4.4%

$             3,352

-0.1%

9.9%

-1.1%

Detroit, MI

$                       138,700

10.1%

$             1,175

1.2%

3.1%

-14.9%

Riverside, CA

$                       322,700

6.7%

$             1,759

2.7%

3.8%

-13.7%

Phoenix, AZ

$                       232,700

6.4%

$             1,310

2.5%

4.6%

5.0%

Seattle, WA

$                       426,300

11.6%

$             2,106

6.7%

8.0%

-17.2%

Minneapolis-St

Paul, MN

$                       241,900

7.7%

$             1,570

3.4%

2.8%

-24.0%

San Diego, CA

$                       532,000

5.2%

$             2,453

3.4%

4.2%

-10.8%

St. Louis, MO

$                       149,300

6.2%

$             1,137

0.3%

1.9%

-7.5%

Tampa, FL

$                       183,300

11.4%

$             1,351

2.7%

4.5%

-8.9%

Baltimore, MD

$                       259,200

4.0%

$             1,717

-0.8%

1.5%

-15.4%

Denver, CO

$                       362,800

9.5%

$             1,997

0.7%

7.8%

4.5%

Pittsburgh, PA

$                       135,700

4.8%

$             1,067

-4.6%

5.0%

-5.8%

Portland, OR

$                       359,800

7.2%

$             1,805

4.6%

9.4%

6.7%

Charlotte, NC

$                       170,600

7.2%

$             1,250

1.1%

3.1%

-11.4%

Sacramento, CA

$                       361,000

8.2%

$             1,717

4.7%

5.5%

-12.7%

San Antonio, TX

$                       158,500

5.6%

$             1,325

1.4%

2.5%

13.4%

Orlando, FL

$                       202,900

10.0%

$             1,400

3.2%

4.4%

-11.0%

Cincinnati, OH

$                       151,300

6.7%

$             1,254

1.9%

2.2%

-15.6%

Cleveland, OH

$                       132,400

4.7%

$             1,144

1.2%

0.1%

2.2%

Kansas Town, MO

$                       155,600

5.9%

$             1,254

1.5%

5.2%

-10.5%

Las Vegas, NV

$                       219,200

9.9%

$             1,247

1.3%

3.2%

22.8%

Columbus, OH

$                       161,700

4.8%

$             1,296

1.2%

3.3%

-19.5%

Indianapolis, Within

$                       137,300

5.5%

$             1,186

-0.3%

0.8%

-12.8%

San Jose, CA

$                       986,000

3.4%

$             3,451

-1.1%

8.6%

-8.0%

Austin, TX

$                       267,500

7.3%

$             1,691

-0.6%

3.2%

23.5%

About Zillow

Zillow® may be the leading property and rental marketplace focused on empowering consumers with information, inspiration and knowledge round the place they contact home, and linking them with the very best local professionals who is able to help. Furthermore, Zillow functions an industry-top economics and analytics bureau brought by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her group of economists and information analysts produce extensive casing data and analysis covering a lot more than 450 marketplaces at Zillow PROPERTY Research. Zillow furthermore sponsors the quarterly Zillow House Price Expectations Study, which asks a lot more than 100 top economists, property experts and expense and marketplace strategists to predict the road of the Zillow House Value Index on the next five yrs. Launched in 2006, Zillow is possessed and managed by Zillow Team (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow is really a registered trademark of Zillow, Inc.

i The Zillow MARKET Reports certainly are a monthly summary of the national and local areas. The reports are published by Zillow PROPERTY Research. To find out more, visit www.zillow.com/research/. The info in Zillow’s MARKET Reports are aggregated from public sources by way of a amount of data providers for 928 metropolitan and micropolitan areas dating back to to 1996. Mortgage and mortgage loan data are usually recorded in each county and publicly available by way of a county recorder’s office. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level could be accessed at www.zillow.com/local-info/ and www.zillow.com/research/data.

ii Rates for a 30-year fixed mortgage.

iii Month high occurred on Tuesday, March 14th.

iv Month low occurred on Wednesday, March 22nd.  

v The Zillow Home Value Index (ZHVI) may be the median estimated home value for confirmed geographic area on confirmed day and includes the worthiness of most single-family residences, condominiums and cooperatives, whether or not they sold within a given period. It is expressed in dollars, and seasonally adjusted.

vi The Zillow Rent Index (ZRI) may be the median Rent Zestimate® (estimated monthly rental price) for confirmed geographic area on confirmed day, and includes the worthiness of most single-family residences, condominiums, cooperatives and apartments in Zillow’s database, whether or not they’re currently listed for rent. It really is expressed in dollars. 

SOURCE Zillow

12 Apr

Down Payment Holding Back again Renters from Investing in a Home

SEATTLE, April 12, 2017 /PRNewswire/ — Despite the fact that a home loan payment is less expensive when compared to a rent payment upon a month-to-month basisi, renters say they can not buy a home because of the pricey deposit, based on the first Zillow® Casing Aspirations Report&business; (ZHAR)ii.

Nearly 70 percent of renters surveyed cite the deposit as a larger barrier to homeownership than debt, job security and qualifying for a mortgageiii. Simply over 1 / 2 of renters cite qualifying for a home loan as a barrier to homeownership, and fifty percent say debt is keeping them back again. Almost 40 % of renters say work security is maintaining them from purchasing a home.

The U.S. homeownership price is usually near an all-time low and contains been falling since 2004, although people of the biggest generation of Us citizens — millennials — are coming old and starting to consider buying a house and settling down. Rents may also be at report highs, costing almost 50 % of the median earnings in some cities. Creating a monthly mortgage repayment is cheaper when compared to a monthly rent transaction in every but two of the 35 largest U.S. metrosiv, but first renters have to save enough cash for a deposit.

The Zillow Casing Aspirations Record, a semi-annual survey sponsored by Zillow and conducted by IPSOS, asks 10,000 renters and house owners in 20 metros in the united states about their views on homeownership and their personal casing expectations in the years ahead.

Here are usually some highlights from the record:

  • Over fifty percent (63 %) of renters are self-confident that they will have the ability to afford a house someday, with 25 % planning on buying within the next 3 to 5 years.
  • Millennial renters tend to be more confident than any generation that they can have the ability to afford a house someday, with 34 % thinking about buying in 3 to 5 years. Almost 25 % (22 %) said they intend to buy in a single to 2 yrs and 2 % of millennial renters mentioned they never anticipate investing in a home.
  • The most respondents (66 percent) believe running a home is essential to call home The American Fantasy, and 72 percent believe running a house increases your standing in the neighborhood community — millennials believe both of these statements a lot more than any generation.

With home values in the united states at their highest stage since June 2007, cobbling together a 20-percent deposit on a house costs a lot more than two-thirds of the U.S. median home annual revenuev. In pricier markets like San Jose and Los Angeles, buyers must develop more than 180 % of the median yearly income, creating a home buy out of grab many aspiring home owners.

“With home values near record highs, it’s not surprising renters are worried about discovering sufficient money to buy a house,” said Zillow Chief Economist Dr. Svenja Gudell. “Rising rents may also be one factor — it’s extremely challenging to save if you are paying record-high rents. Although it is possible to place down less than 3 % on a house, the trade-off is really a higher interest and costly private home loan insurance, a economic tradeoff that could make sense for a few purchasers. But with interest levels rising in 2017, it is critical to remember that a lesser interest can save customers thousands over the lifestyle of these loan. For those attempting to conserve for a deposit, it is important to set realistic targets and realize it could take a couple of years. Also, consider dealing with an established financial advisor to greatly help set a spending budget that functions for you.”

San Jose, San Diego and Los Angeles had the best share of renters say affording the deposit is the number 1 barrier to owning, at over 72 percent. Women (72 percent) were much more likely than men (62 percent) to choose the down payment because the top barrier to homeownership.

One-third of buyers used several source of funds because of their deposit, including gifts and loans from family, based on the Zillow Group Report on Consumer Housing Trendsvi. Over 1 / 2 of buyers saved by putting away a little money at the same time.

Mortgage rates on Zillow ended the month of March at 3.94 percent, down from the most of 4.13 percent in the center of the monthvii. Home shoppers may use the Zillow Affordability Calculator to observe how varying loan amounts and down payments will impact monthly premiums and the lifetime balance of these mortgage.

Perceived Barriers to Homeownership in the U.S., Among Renters

Barrier

Percent of Renters Citing Barrier

Affording the Down Payment

67.9%

Qualifying for a Mortgage

53.2%

Debt

50.0%

Job Security

38.5%

Not able to Settle Down

20.1%

Not Enough Homes for Sale

11.2%

None

6.9%

Other

4.1%

Top Three Perceived Barriers to Homeownership Among Renters

Metropolitan Area

Number 1 Barrier

Number 2 Barrier

Number 3 Barrier

United States

Affording DEPOSIT – 67.9%

Qualifying for Mortgage – 53.2%

Debt – 50.0%

New York/Northern New Jersey

Affording DEPOSIT – 56.2%

Qualifying for Mortgage – 48.9%

Debt – 47.7%

Los Angeles-Long Beach-Anaheim, CA

Affording DEPOSIT – 72.2%

Qualifying for Mortgage – 55.0%

Debt – 43.7%

Chicago, IL

Affording DEPOSIT – 69.7%

Qualifying for Mortgage – 52.5%

Debt – 50.6%

Dallas-Fort Worth, TX

Affording DEPOSIT – 65.6%

Qualifying for Mortgage – 54.9%

Debt – 52.5%

Philadelphia, PA

Affording DEPOSIT – 67.5%

Debt – 54.6%

Qualifying for Mortgage – 49.3%

Washington, DC

Affording DEPOSIT – 70.6%

Qualifying for Mortgage – 58.0%

Debt – 53.0%

Miami-Fort Lauderdale, FL

Affording DEPOSIT – 64.7%

Qualifying for Mortgage – 54.6%

Debt – 45.4%

Atlanta, GA

Affording DEPOSIT – 62.3%

Debt – 54.9%

Qualifying for Mortgage – 51.3%

Boston, MA

Affording DEPOSIT – 71.5%

Qualifying for Mortgage – 53.7%

Debt – 43.5%

San Francisco, CA

Affording DEPOSIT – 69.0%

Qualifying for Mortgage – 55.5%

Debt – 49.8%

Detroit, MI

Affording DEPOSIT – 67.6%

Debt – 52.7%

Qualifying for Mortgage – 49.9%

Phoenix, AZ

Affording DEPOSIT – 69.2%

Qualifying for Mortgage – 59.9%

Debt – 51.9%

Seattle, WA

Affording DEPOSIT – 66.0%

Qualifying for Mortgage – 52.8%

Debt – 48.1%

Minneapolis-St Paul, MN

Affording DEPOSIT – 69.4%

Debt – 53.0%

Qualifying for Mortgage – 50.1%

San Diego, CA

Affording DEPOSIT – 72.9%

Debt – 54.4%

Qualifying for Mortgage – 50.7%

St. Louis, MO

Affording DEPOSIT – 70.4%

Debt – 53.5%

Qualifying for Mortgage – 53.2%

Tampa, FL

Affording DEPOSIT – 70.3%

Qualifying for Mortgage – 56.6%

Debt – 51.8%

Denver, CO

Affording DEPOSIT – 65.7%

Qualifying for Mortgage – 52.4%

Debt – 51.4%

Las Vegas, NV

Affording DEPOSIT – 63.0%

Qualifying for Mortgage – 54.8%

Debt – 48.8%

San Jose, CA

Affording DEPOSIT – 73.9%

Qualifying for Mortgage – 48.4%

Debt – 43.7%

About Zillow
Zillow® may be the leading property and rental marketplace focused on empowering consumers with data, inspiration and knowledge round the place they call home, and connecting them with the very best local professionals who is able to help. Furthermore, 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 a lot more than 450 markets at Zillow PROPERTY Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks a lot more than 100 leading economists, property experts and investment and market strategists to predict the road of the Zillow Home Value Index on the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow is really a registered trademark of Zillow, Inc. Housing Aspirations Report is really a trademark of Zillow, Inc.

IPSOS is really a registered trademark of IPSOS S.A.

i In the U.S., the monthly median mortgage repayment takes 15.8 percent of the median monthly income as the monthly median rent payment takes 29.2 percent of the median monthly income. 
ii The Zillow Housing Aspirations Report is computed from an IPSOS poll which combines sample of 10,000 U.S. adults from 20 U.S. core-based statistical area (CBSA) metropolitans (Atlanta, Boston, Chicago, Dallas, Denver, Detroit, Los Angeles, Las Vegas, Miami, Minneapolis, New York, Philadelphia, Phoenix, St. Louis, San Diego, San Francisco, San Jose, Seattle, Tampa, and Washington, D.C.) age 18+, surveyed online in English. The survey includes a credibility interval of plus or minus 1.1 percentage points for several respondents from the 20 U.S. metropolitans and approximately 5.0 percentage points for a person U.S. metropolitan. Post-hoc weights were designed to the populace characteristics on gender, age, region, and race and ethnicity. This version of the survey was conducted March 1st – 15th, 2017. To find out more about conducting research designed for public release or Ipsos’ online polling methodology, please go to the Public Opinion Polling and Communication page. 
iii Renters surveyed said creating a down payment is really a greater barrier than qualifying for a home loan, debt, job security, not being able to relax and low inventory of homes. 
ivSan Jose and Miami will be the only metros on the list of largest 35 U.S. metros in which a mortgage payment occupies more income when compared to a rental payment.  
v Zillow release on deposit costs here.   
vi The initial annual Zillow Group Report may be the largest-ever survey of U.S. home buyers, sellers, owners and renters, and asked a lot more than 13,000 U.S. residents aged 18 to 75 about their homes – how they seek out them, purchase them, maintain and improve them, and what frustrations and aspirations color their decisions.  
vii Rates for a 30-year fixed mortgage. Most of 4.13 percent was hit on March 14, 2017.

SOURCE Zillow

7 Apr

Seattle Renters Need Biggest Income Boost to Keep Up with Rising Rents

SEATTLE, April 7, 2017 /PRNewswire/ — Renters in Seattle, Los Angeles, and Boston need the biggest income increases in 2017 to keep up with rising rents, according to a new Zillow analysisi. In each of these metros, renters need their annual incomes to be at least $1,000 higher next year to have the same amount of money left over after paying rent.

Nationally, annual incomes would need to rise just $168 for renters to keep up with rising rents in the next year alone – an increase that comes on top of nearly five years of rising rents putting a dent in paychecks across the country.  

These income increases will only maintain the current amount of left over cash after paying rent. In several major metros, the share of income needed to pay rent already surpasses the general rule of not spending more than 30 percent of income on housing. In nearly all large markets, the median rent requires a larger share of income than it did before the housing bubble and bust.

Housing affordability is still a significant issue for renters, who have experienced rising rents for years. In some markets, the median rent requires more than 40 percent of the typical household income. However, rent appreciation is slowing, and rents are predicted to rise just 1 percent over the next year.

“For a long time now, renters have faced an affordability crisis when it comes to housing, and renters in some hot markets will still need significant raises just to keep up with rising rents,” said Zillow Chief Economist Dr. Svenja Gudell. “Incomes have a ways to go to bring rental affordability closer to historical levels, but recent gains are being met with slowing rent appreciation, a welcome sign for renters.”

Top Five Markets Needing the Biggest Annual Income Increase to Keep Up with Rising Rents

Metro

Annual Income Increase

1.

Seattle

$1,248

2.

Los Angeles

$1,152

3.

Boston

$1,140

4.

Sacramento, Calif.

$792

5.

Orlando, Fla.

$672

Not all rental markets are expected to see as strong of rent appreciation. Renters in the Bay Area, Chicago, and Houston, for example, do not need their incomes to grow to have the same amount of money left over after paying rent. Income growth in these markets will provide some much needed relief for renters in terms of housing affordability.

Metropolitan Area

Zillow Rent
Index
(February
2017)

Forecasted
Zillow Rent Index
(February 2018)

Annual Income
Increase Needed
to Maintain
Current
Disposable
Income After
Paying Rent

Annual Income
Percent Change
Needed to
Maintain Current
Disposable
Income After
Paying Rent

United States

$1,406

$1,420

$168

0.3%

New York/Northern New Jersey

$2,391

$2,382

$0

0.0%

Los Angeles-Long Beach-Anaheim, CA

$2,642

$2,738

$1,152

2.0%

Chicago, IL

$1,619

$1,603

$0

0.0%

Dallas-Fort Worth, TX

$1,565

$1,609

$528

0.9%

Philadelphia, PA

$1,568

$1,593

$300

0.5%

Houston, TX

$1,547

$1,540

$0

0.0%

Washington, DC

$2,114

$2,140

$312

0.5%

Miami-Fort Lauderdale, FL

$1,854

$1,879

$300

0.6%

Atlanta, GA

$1,335

$1,334

$0

0.0%

Boston, MA

$2,342

$2,437

$1,140

1.7%

San Francisco, CA

$3,354

$3,240

$0

0.0%

Detroit, MI

$1,175

$1,184

$108

0.2%

Riverside, CA

$1,754

$1,792

$456

1.1%

Phoenix, AZ

$1,309

$1,346

$444

0.9%

Seattle, WA

$2,100

$2,204

$1,248

1.8%

Minneapolis-St Paul, MN

$1,566

$1,606

$480

0.8%

San Diego, CA

$2,452

$2,506

$648

1.2%

St. Louis, MO

$1,132

$1,118

$0

0.0%

Tampa, FL

$1,347

$1,373

$312

0.7%

Baltimore, MD

$1,720

$1,705

$0

0.0%

Denver, CO

$1,998

$2,043

$540

0.9%

Pittsburgh, PA

$1,068

$1,049

$0

0.0%

Portland, OR

$1,804

$1,859

$660

1.2%

Charlotte, NC

$1,248

$1,280

$384

0.7%

Sacramento, CA

$1,709

$1,775

$792

1.5%

San Antonio, TX

$1,323

$1,330

$84

0.2%

Orlando, FL

$1,396

$1,452

$672

1.6%

Cincinnati, OH

$1,254

$1,299

$540

1.1%

Cleveland, OH

$1,141

$1,136

$0

0.0%

Kansas City, MO

$1,251

$1,280

$348

0.7%

Las Vegas, NV

$1,247

$1,258

$132

0.3%

Columbus, OH

$1,293

$1,315

$264

0.5%

Indianapolis, IN

$1,184

$1,161

$0

0.0%

San Jose, CA

$3,449

$3,421

$0

0.0%

Austin, TX

$1,694

$1,706

$144

0.3%

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. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG), and headquartered in Seattle.

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i Zillow computed the dollar value associated with our 12-month-ahead rent forecasts (February 2017 to February 2018) across major housing markets and then compared these dollar values to average wage and salary income in each market as reported for 2016-Q3 in the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages. We then calculated the annual percent increase in incomes necessary to cover expected rent growth over the next 12 months. We assume that the entire paycheck increase will go to housing costs with no increases in other costs. It does not account for taxes or rising costs of other items such as food, healthcare or energy. For markets where we forecast an aggregate rent decline over the next 12 months, we force the necessary paycheck increase to zero.

SOURCE Zillow