Market Report: Flatter Rents and Slowing Values
According to the August Zillow® Real Estate Market Report, home prices and rents slowed as summer wound down, with prices up 6.5 percent year-over-year—a departure from 8.2 percent this spring—and rents unchanged. Based on the Zillow Home Value Index and the Zillow Rent Index, the median price is $216,700, and the median rent is $1,440.
In August 2017, home prices were rising 7.4 percent, according to Zillow. On the rental side, appreciation has not exceeded 3 percent for more than two years.
“Earlier this year, the housing market was a story of diverging paths, with rents steadily cooling and home values picking up speed,” says Aaron Terrazas, senior economist at Zillow. “Normally rents and home values are tied together, but strong apartment construction and a surge of young homebuyers contributed to this historical anomaly.
“As summer turns to fall, the more typical pattern is reemerging, as rents and home values are both slowing in unison,” Terrazas says. “The feverish housing crunch of the past few years seems to be cracking. Slower rent growth means that renters may feel less urgency to buy. While home values continue to grow at double their historic pace, the speed of appreciation is down sharply from its spring highs.”
August data for the 20 largest markets: