Understanding Today’s Connected Borrower

Sign up for this webinar to learn how to transform the borrower journey from transaction to relationship and gain a significant lift in production in today’s digital lending environment.

RealTrending: eXp’s Glenn Sanford reveals what’s next for company

CEO of eXp World holdings addresses his critics about his agent referral program, where he is taking the company next and growth limiters for the brokerage.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

Mortgage servicers take steps to support borrowers amid COVID

Call volumes have spiked to a level not seen since last April, lenders and servicers need to prepare for a significant increase in their workload as they help borrowers through difficult times.

Real Estate

Zillow: Rent growth hits a 10-month high in February

U.S. median rent reaches $1,472, adds extra $400 in expenses for average renter

While the housing market continues to experience a slowdown in home sales and price appreciation, new data from Zillow suggests the rental market is heating up.

According to the company’s Real Estate Market Report, February’s rental prices climbed at the fastest rate in the last 10 months.

In fact, February’s 2.4% year-over-year price appreciation drove the U.S. median rent price up to $1,472. 

Not only is this a jump from last year’s $1,438, but it also translates to more than $400 in additional annual expenses for the average renter.

That being said, while annual rent growth accelerated in the majority of large housing markets, Orlando and Pittsburgh were the only two rental markets to experience a slowdown.

Despite their cool off, both still saw higher-than-average growth, with Orlando rents growing faster than any other large metro at 7%.

But will this momentum last? Well, Zillow Economist Jeff Tucker warns this sudden spark could soon go dim.

"The rental market spent part of last year catching its breath after several years of breakneck growth," Zillow Economist Jeff Tucker said. "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."

And Tucker could be right, because according to CoreLogic Deputy Chief Economist Ralph McLaughlin, a large percentage of 2018’s Q4 homeownership growth came from young renters transitioning into homebuyers.

“The fourth quarter of 2018 was the fifth consecutive quarter that owner-occupied households grew by more than a million, at 1.7 million new owner households,” McLaughlin wrote in a report. “At the same time, the number of new renter households fell six out of the past seven quarters with a decrease of 167,000 households. This suggests that the increase in the homeownership rates is at least partly due to households making a switch from renting to owning.”

Most Popular Articles

Millions will enter housing market in 2021: Zillow

Up to 2.5 million households could enter the housing market in 2021, per Zillow. The buyers will descend on the “secondary cities” across the U.S.

Apr 07, 2021 By

Latest Articles

Gridiron Capital acquires Class Valuation

Private equity firm Gridiron Capital has acquired a majority stake in appraisal management company Class Valuation, a top player in the space.

Apr 13, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please