Real Estate
Home Values Rise 7 Percent in 2016
The median home value in the U.S. is now $193,800, according to Zillow’s December Real Estate Market Reports. Rents grew 1.5 percent annually to a $1,403 median monthly payment.
– Home values rose 6.8 percent over the past year to a Zillow Home Value Index (ZHVI) of $193,800 in December.
– Rents rose 1.5 percent over the past year to a Zillow Rent Index (ZRI) of $1,403 per month.
– Portland and Seattle each ranked in the top three for the fastest appreciating rents and home values.
Home values rose 6.8 percent from last December, the fastest annual pace of the year. The Zillow® Home Value Indexi (ZHVI) is $193,800, just below the highest value set in April 2007, according to the December Zillow Real Estate Market Reportsii.
Home value appreciation slowed slightly in Portland, but remains the fastest in the nation, up 13.8 percent from last December. Tampa, Seattle and Dallas saw similarly high home value growth, with home values growing nearly 12 percent from a year ago.
Hot home values characterized 2016 all the way to the end – and they show no sign of slowing in 2017. However, as the new year begins, flattening rents could take the heat off buyers who are struggling to find a home amid low inventory and give them more time to search for the right home.
“Home values ended 2016 growing at their fastest pace of the year, which could be an indication of what to expect in 2017,” said Zillow Chief Economist Dr. Svenja Gudell. “Lack of inventory will remain a major concern for home buyers this year. Especially lack of available entry-level homes coupled with high demand will continue to rapidly drive up home values in the near future. Buyers should make sure they get pre-approved for a mortgage, and be prepared to move quickly, especially in hot markets like Seattle and Portland. It’s not uncommon for buyers to make at least two offers during their home search.”
Rent appreciation stabilized at 1.5 percent annual growth, less than half the pace rents were growing at last year. The median monthly rent payment in the U.S. is $1,403.
The fastest rent appreciation occurred along the West Coast. Seattle led the nation in rising rents, with rents growing 8.4 percent in December, followed by Portland and Sacramento.
Inventory is still a concern for home buyers across the country; finding an affordable home is the top concern for people searching for homesiii. There are 4.6 percent fewer available homes than there were a year ago. Among the nation’s largest markets, Boston and Minneapolis saw the biggest declines in inventory over the past year.
|
Metropolitan Area |
Zillow Home Value Index (ZHVI) |
Year-over-Year ZHVI Change |
Zillow Rent Indexiv (ZRI) |
Year-over-Year ZRI Change |
Year-over-Year Inventory Change |
|
United States |
$193,800 |
6.8% |
$1,403 |
1.5% |
-4.6% |
|
New York/Northern New Jersey |
$402,700 |
6.3% |
$2,392 |
0.2% |
-9.0% |
|
Los Angeles-Long Beach-Anaheim, CA |
$594,100 |
6.5% |
$2,625 |
5.3% |
-5.0% |
|
Chicago, IL |
$204,700 |
5.4% |
$1,632 |
-0.2% |
-8.1% |
|
Dallas-Fort Worth, TX |
$201,400 |
11.6% |
$1,560 |
3.9% |
-7.7% |
|
Philadelphia, PA |
$214,800 |
4.6% |
$1,573 |
0.9% |
-12.1% |
|
Houston, TX |
$176,100 |
6.6% |
$1,556 |
-1.5% |
0.6% |
|
Washington, DC |
$380,200 |
3.4% |
$2,122 |
0.7% |
-13.8% |
|
Miami-Fort Lauderdale, FL |
$247,000 |
9.0% |
$1,871 |
2.3% |
14.6% |
|
Atlanta, GA |
$173,300 |
7.4% |
$1,333 |
4.6% |
-3.2% |
|
Boston, MA |
$412,300 |
6.5% |
$2,329 |
3.7% |
-21.6% |
|
San Francisco, CA |
$829,700 |
4.8% |
$3,371 |
1.0% |
-6.5% |
|
Detroit, MI |
$135,900 |
10.0% |
$1,170 |
3.1% |
-17.9% |
|
Riverside, CA |
$319,400 |
6.8% |
$1,746 |
3.2% |
-9.0% |
|
Phoenix, AZ |
$230,500 |
6.8% |
$1,304 |
4.2% |
4.9% |
|
Seattle, WA |
$413,700 |
11.7% |
$2,097 |
8.4% |
-8.3% |
|
Minneapolis-St Paul, MN |
$236,200 |
6.5% |
$1,558 |
3.9% |
-19.9% |
|
San Diego, CA |
$529,500 |
6.3% |
$2,443 |
5.3% |
-0.6% |
|
St. Louis, MO |
$148,900 |
7.1% |
$1,126 |
0.3% |
-13.0% |
|
Tampa, FL |
$179,600 |
11.8% |
$1,340 |
3.3% |
-11.6% |
|
Baltimore, MD |
$257,800 |
3.8% |
$1,728 |
0.8% |
-14.1% |
|
Denver, CO |
$355,400 |
9.6% |
$2,003 |
2.6% |
2.7% |
|
Pittsburgh, PA |
$133,700 |
4.7% |
$1,074 |
-1.9% |
-1.0% |
|
Portland, OR |
$354,400 |
13.8% |
$1,805 |
6.8% |
1.9% |
|
Charlotte, NC |
$168,000 |
7.4% |
$1,246 |
2.0% |
-10.4% |
|
Sacramento, CA |
$352,700 |
7.4% |
$1,708 |
6.7% |
-4.0% |
|
San Antonio, TX |
$156,900 |
6.4% |
$1,324 |
1.8% |
8.0% |
|
Orlando, FL |
$200,500 |
10.7% |
$1,387 |
3.4% |
-12.3% |
|
Cincinnati, OH |
$148,700 |
5.8% |
$1,249 |
2.1% |
-16.8% |
|
Cleveland, OH |
$130,700 |
4.7% |
$1,143 |
1.5% |
-10.0% |
|
Kansas City, MO |
$152,900 |
5.9% |
$1,246 |
3.8% |
-18.4% |
|
Las Vegas, NV |
$215,400 |
9.8% |
$1,245 |
2.7% |
25.7% |
|
Columbus, OH |
$162,200 |
5.1% |
$1,292 |
1.7% |
-16.5% |
|
Indianapolis, IN |
$134,300 |
2.1% |
$1,186 |
0.3% |
-12.9% |
|
San Jose, CA |
$963,700 |
4.0% |
$3,470 |
0.9% |
-13.9% |
|
Austin, TX |
$261,500 |
8.2% |
$1,698 |
0.8% |
15.1% |
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. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG), and headquartered in Seattle.
