Zillow compares rent trends with home value trends in 2015.

Zillow chief economist Svenja Gudell clocks into the online real estate firm's October data dashboard, noting the reversal of one of housing's more pronounced trends: Rent growth has decelerated while home value growth has grown.

The reason Gudell gives for the slow-down in the rent appreciation rates is the expansion of available for-rent inventory, while at the same time supply of for-sale homes has continued to tighten. Consequently, rents increases have eased, while home prices have sustained momentum due to demand for a scarce inventory of available homes. Here are the top line metrics Gudell notes:

  • Rents appreciated 4.5 percent year-over-year, down from 5.3 percent in September 2015. 
  • Rents in large multifamily buildings rose 3.9 percent annually, rents of single-family homes grew 4.5 percent. 
  • Home values grew 4.3 percent year over year to a Zillow Home Value Index of $182,800 in October.
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