Rent Growth Hits 10-Month High
A new report from Zillow says that rent growth has hit a 10-month high as appreciation in home values is dropping sharply. Their data show that rent prices grew on an annual basis at their highest rate since April, after decreasing for the first time in six years last Fall. However their economist says millennials will son stop renting and move over to the homeownership column.
- Rent prices grew 2.4 percent from a year ago. The median U.S. rent is now $1,472.
- The typical U.S. home is worth $226,300, a year-over-year increase of 7.2%. This is the smallest annual increase in home values since December 2017, down from 8% two months earlier.
- U.S. for-sale home inventory rose for the fifth time in the past six months.
- Expensive West Coast markets continued to cool, experiencing the most extreme slowdowns in home value appreciation and rises in inventory.
“Landlords are now coming to terms with the fact that rent cannot grow faster than income forever, and after that short correction we can expect a much more vanilla, slow-growth market going forward. As we enter the 2020s, the demand for rentals is projected to fall as many millennials move on to homeownership.” Said Zillow economist Jeff Tucker.