DataMarkets & Economy

Home values and rents rising across major metros as inventory continues to fall

Zillow reports finds national incomes rising faster than home value increases
  • National home values rose 5 percent annually in August to $188,100, while incomes increased 5.2 percent during the same time frame.
  • Rent prices increased at a pace of 1.7 percent, compared with a 6 percent increase reported the same time last year.
  • Inventory rates are falling across the country, with a 5.4 percent decrease reported in August.

For the first time since 2011, incomes are rising at a faster pace than home values, according to recent data released by the U.S. Census Bureau and reported by Zillow. The report shows home values rose at a 5 percent annual rate, while incomes grew by 5.2 percentage points. According to the August Zillow Real Estate Market Reports, the Zillow Home Value Index (ZHVI) was reported at $188,100 in August. Inventory, while trending in a more positive direction than at the start of the year, is still a slight cause for concern, the report shows. Year-over-year inventory dipped 5.4 percentage points in August. "The housing market is starting to smooth out ever-so-slightly, as the peak home shopping season winds down," Zillow Chief Economist Dr. Svenja Gudell said in a statement. "This is good news for frenzied buyers tired of tight inventory, rapidly rising home prices and intense competition. Inventory, while still down nationwide and in most areas, is actually starting to rise ...