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.