The estimated, total cumulative value of every U.S. home as of the end of 2015 is expected to top $28.4 trillion, up 4.1% ($1.1 trillion) from the end of 2014, according to Zillow chief economist Svenja Gudell.
Gudell tells us what that means in her November Market Report post, which came out during the holiday week, and probably merits at least another look. Gudell looks at house price and rent trends for the 2015 year through the end of November, and she spotlights five trends she expects will play out in 2016. Here they are:
- The median age of first-time buyers will reach new highs in 2016 as millennials put off homeownership and other major life decisions.
- Growth in home values will outpace incomes, especially for low-income Americans. In 2016, those whose incomes fall in the bottom third of all incomes will likely be priced out of homeownership and unable to afford even the least expensive homes on the market.
- Growth in rents may be slowing, but rents will still grow in 2016, likely bringing the least affordable median rents ever.
- And as affordable housing close to city centers grows increasingly scarce, people will move farther out. Dense, walkable suburbs with an urban feel – especially those that offer good access to the city – will be 2016’s new hot spots.