Consumer Trends

Home Values Rise at Fastest Pace in 12 Years

Median home values across the nation rose 8.7 percent over the past year to $215,600

New research from Zillow reveals: Home values across the U.S. are rising at their fastest pace since June 2006; The median U.S. home value is $215,600, up 8.7 percent over the past year; Home values are rising the fastest in San Jose, Calif., Las Vegas and Seattle. San Jose home values appreciated 26 percent since last April.

SEATTLE, May 24, 2018 /PRNewswire/ — National median home values are rising at their fastest pace in 12 years, according to the April Zillow® Real Estate Market Reporti. Over the past year, home values across the country rose 8.7 percent to a median value of $215,600.

Home values have not appreciated this quickly since June 2006, right before the housing bubble bust, when they were appreciating 9 percent annually. U.S. home values are now higher than they have ever been, and home values in 21 of the 35 largest housing markets have surpassed peak value hit during the height of the housing boom over a decade ago.

A home-buying perfect storm

“Home values are rising faster than we’ve seen in a very long time: The spring home shopping season has been a perfect storm of strong demand and tight supply,” said Zillow senior economist Aaron Terrazas. “Sluggish new construction has exacerbated the supply situation and homes that are hitting the market, are moving very quickly once they do. Americans are also in a spending mood, boosted by recent tax cuts and rising wages. Millennials who long delayed becoming homeowners, are out in force – a shift we’re also seeing in softer rent appreciation.”

Home values are appreciating the fastest in San Jose, Las Vegas, and Seattle. In San Jose, home values rose 26 percent to a median of $1,263,900. In Las Vegas and Seattle, home values rose 16.5 percent and 13.6 percent, respectively.

Median rent across the nation rose 2.5 percent over the past year to a median payment of $1,449 per month. Sacramento, Calif., Riverside, Calif., and Las Vegas reported the greatest year-over-year rent appreciation among the 35 largest U.S. metros. In Sacramento and Riverside, median rent rose 7 percent and in Las Vegas, median rent rose 4.5 percent.

April ended with mortgage rates on Zillowii at 4.35 percent, after starting the month at 4.20 percent. April mortgage rates peaked toward the end of the monthiii at 4.42 percent, the highest rate since the beginning of 2013iv, and hit a month low in the first few weeks of the monthv when rates were at 4.19 percent. Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.

Metropolitan
Area

Zillow Home Value
Indexvi (ZHVI)

ZHVI Year-
Over-Year
Change

Percent Fall
from Peak
Home Value Hit
During Housing
Bubble

Zillow Rent
Index
vii (ZRI)

ZRI Year-
Over-Year
Change

United States

$                215,600

8.7%

0.0%

$          1,449

2.5%

New York, NY

$                424,800

7.3%

-6.2%

$          2,401

0.8%

Los Angeles-
Long Beach-
Anaheim, CA

$                644,600

8.4%

0.0%

$          2,759

3.9%

Chicago, IL

$                218,000

5.5%

-14.2%

$          1,653

1.7%

Dallas-Fort
Worth, TX

$                225,100

11.2%

0.0%

$          1,605

1.9%

Philadelphia,
PA

$                225,300

5.8%

-5.1%

$          1,581

1.1%

Houston, TX

$                195,500

4.7%

0.0%

$          1,561

1.2%

Washington,
DC

$                398,900

4.5%

-8.4%

$          2,149

1.5%

Miami-Fort
Lauderdale, FL

$                269,100

7.5%

-13.6%

$          1,867

1.2%

Atlanta, GA

$                200,600

10.6%

0.0%

$          1,399

4.3%

Boston, MA

$                449,000

6.5%

0.0%

$          2,385

1.3%

San Francisco,
CA

$                947,500

11.4%

0.0%

$          3,425

2.1%

Detroit, MI

$                151,600

8.9%

-4.8%

$          1,209

3.4%

Riverside, CA

$                355,700

9.2%

-13.2%

$          1,894

7.0%

Phoenix, AZ

$                253,100

8.6%

-10.9%

$          1,368

4.3%

Seattle, WA

$                490,000

13.6%

0.0%

$          2,208

4.2%

Minneapolis-
St Paul, MN

$                258,700

7.8%

0.0%

$          1,644

4.1%

San Diego, CA

$                585,600

8.4%

0.0%

$          2,549

3.6%

St. Louis, MO

$                159,700

5.2%

0.0%

$          1,150

0.8%

Tampa, FL

$                202,900

12.4%

-9.2%

$          1,383

2.4%

Baltimore, MD

$                262,700

4.4%

-12.0%

$          1,748

1.8%

Denver, CO

$                399,200

8.8%

0.0%

$          2,058

3.0%

Pittsburgh, PA

$                138,400

6.5%

0.0%

$          1,083

1.8%

Portland, OR

$                389,100

6.2%

0.0%

$          1,856

2.4%

Charlotte, NC

$                192,900

11.0%

0.0%

$          1,301

3.7%

Sacramento,
CA

$                398,300

7.8%

-5.9%

$          1,853

7.0%

San Antonio,
TX

$                182,800

5.7%

0.0%

$          1,344

1.3%

Orlando, FL

$                223,700

10.1%

-15.6%

$          1,448

3.5%

Cincinnati, OH

$                157,200

5.1%

0.0%

$          1,282

2.2%

Cleveland, OH

$                138,700

6.5%

-3.5%

$          1,150

0.3%

Kansas City,
MO

$                177,800

8.5%

0.0%

$          1,278

1.4%

Las Vegas, NV

$                260,800

16.5%

-17.7%

$          1,305

4.5%

Columbus, OH

$                180,000

9.2%

0.0%

$          1,332

2.6%

Indianapolis,
IN

$                149,200

6.6%

0.0%

$          1,204

1.3%

San Jose, CA

$             1,263,900

26.2%

0.0%

$          3,529

2.0%

Austin, TX

$                293,100

5.3%

0.0%

$          1,687

-0.2%

Zillow Research

Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with great real estate professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow Group’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.