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U.S. Rent Growth Accelerates as Home Values Stabilize

Rent values grew faster than in the same period last year, while home value appreciation remains flat in major West Coast markets

- Rents grew for the ninth straight month and are now up 3% year-over-year. The median monthly rent in the U.S. is $1,483.

- Home values grew 5.2% year-over-year, down from 7.6% annual growth at this time last year.

- For-sale inventory in the U.S. fell 0.8% annually. There are 12,128 fewer homes for sale than in June 2018.

SEATTLE, July 22, 2019 /PRNewswire/ -- U.S. rent values continued their growth streak, accelerating for the ninth-straight month, according to the June Zillow® Real Estate Market Reporti.

The median U.S. rent rose 3% on an annual basis to $1,483, with Las Vegas (up 10%), Phoenix (up 8.4%) and Orlando (up 7.4%) seeing the largest year-over-year growth. Rents are up YoY in 49 of the nation's top 50 markets with Milwaukee as the only exception. Nationally, rent growth has not been this strong since 2016 when pressure in the rental market spurred record numbers of multi-family permits.

The typical U.S. home is worth $227,700, up slightly from May after month-over-month values dropped for the first time in seven years this spring. That's a stronger confirmation that housing markets are stabilizing as opposed to on the brink of an imminent downturn. Annually, home values grew 5.2%, down from 7.6% a year earlier.

Salt Lake City (up 9.3% from June 2018), Indianapolis (up 8.8%) and Charlotte (up 7.7%) saw the strongest annual home value growth, as notable West Coast markets flatlined, with Los Angeles (up 0.9%), Seattle (up 0.4%) and San Francisco (0%) seeing minimal to no home value growth compared to last year. San Jose, which last year saw a nation-leading annual growth rate of 23.4%, was the only market to see annual home values fall – by 8.2%.

"As much as record numbers of new apartments led many to believe that rental markets might have become over saturated with new supply, the reality is that demographics and general economic health continue to keep the pressure on," said Zillow Director of Economic Research Skylar Olsen. "Yes, we saw rents fall in 2018, but that was driven by the concentration of supply in urban areas and large buildings at higher end price points competing against each other. What the rental market still craves are affordable units spread across the landscape. Show me a three-bedroom apartment in a small building located near good schools and I'll show you an older millennial with kids ready to move in."

Inventory fell 0.8% year-over-year in the U.S., the fourth straight month of declines after inventory rose at the start of the year. The most significant drop was in Kansas City, which saw 31.6% fewer homes for sale than this time last year. Markets with the largest inventory growth can be found out west, led by Las Vegas (up 54.3%), San Jose (up 37.2%), Salt Lake City (up 21.3%) and San Francisco (up 20.8%).

Metropolitan
Area

Zillow Home
Value Index,
June 2019

ZHVI
Month-
over-Month
Change

ZHVI Year-
over-Year
Change

Zillow
Rent
Index,
June 2019

ZRI Year-
over-Year
Change

Inventory
Year-over-
Year
Change

United States

$227,700

0.1%

5.2%

$1,483

3.0%

-0.8%

New York, NY

$443,000

-0.1%

3.6%

$2,407

1.3%

3.9%

Los Angeles-Long Beach-Anaheim, CA

$649,600

-0.1%

0.9%

$2,836

3.1%

10.0%

Chicago, IL

$224,900

-0.4%

2.0%

$1,713

4.6%

4.6%

Dallas-Fort Worth, TX

$242,900

0.0%

5.6%

$1,661

4.1%

9.1%

Philadelphia, PA

$233,000

-0.0%

2.4%

$1,614

3.0%

-9.8%

Houston, TX

$205,700

0.1%

3.4%

$1,588

2.5%

3.2%

Washington, DC

$407,200

-0.2%

2.0%

$2,185

2.5%

-16.7%

Miami-Fort Lauderdale, FL

$282,700

-0.2%

3.2%

$1,938

4.2%

3.3%

Atlanta, GA

$219,700

-0.1%

7.6%

$1,475

5.8%

7.7%

Boston, MA

$464,400

-0.2%

2.7%

$2,433

3.0%

10.9%

San Francisco, CA

$942,800

-0.2%

0.0%

$3,466

2.0%

20.8%

Detroit, MI

$163,100

0.2%

5.8%

$1,233

3.3%

13.8%

Riverside, CA

$370,900

-0.1%

3.7%

$2,017

6.3%

-2.8%

Phoenix, AZ

$267,200

0.0%

4.9%

$1,480

8.4%

-1.3%

Seattle, WA

$489,400

-0.3%

0.4%

$2,259

3.8%

19.0%

Minneapolis-St Paul, MN

$272,000

0.1%

4.8%

$1,711

4.5%

2.5%

San Diego, CA

$590,000

-0.2%

1.0%

$2,673

5.2%

7.6%

St. Louis, MO

$167,200

0.1%

3.5%

$1,169

2.6%

-16.7%

Tampa, FL

$215,500

0.2%

5.5%

$1,465

5.5%

4.2%

Baltimore, MD

$267,500

-0.1%

1.1%

$1,748

0.5%

-8.1%

Denver, CO

$408,000

-0.2%

3.0%

$2,142

4.3%

20.4%

Pittsburgh, PA

$143,600

0.3%

1.9%

$1,108

2.4%

-15.6%

Portland, OR

$395,300

-0.3%

1.4%

$1,895

3.3%

0.5%

Charlotte, NC

$209,800

0.2%

7.7%

$1,360

5.2%

3.9%

Sacramento, CA

$411,000

-0.2%

3.1%

$1,936

5.1%

-3.1%

San Antonio, TX

$194,900

0.3%

5.2%

$1,388

4.0%

17.0%

Orlando, FL

$240,500

0.0%

6.4%

$1,554

7.4%

5.7%

Cincinnati, OH

$170,400

-0.1%

6.4%

$1,309

2.7%

-8.4%

Cleveland, OH

$146,500

0.2%

4.1%

$1,176

3.2%

-3.7%

Kansas City, MO

$191,800

-0.1%

5.5%

$1,309

3.5%

-31.6%

Las Vegas, NV

$278,700

-0.3%

6.1%

$1,435

10.0%

54.3%

Columbus, OH

$193,200

0.2%

6.9%

$1,380

3.4%

-7.0%

Indianapolis, IN

$166,700

0.1%

8.8%

$1,244

4.0%

-2.0%

San Jose, CA

$1,160,800

-1.2%

-8.2%

$3,611

3.2%

37.2%

Austin, TX

$311,800

0.1%

5.0%

$1,737

3.3%

-7.0%

Zillow
Zillow® is transforming how people buy, sell, rent and finance homes by creating seamless real estate transactions for today's on-demand consumer. 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, data analysts, applied scientists and engineers 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.

 

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