Home values and rents are both on the rise, but some metros are seeing rents growing much faster than home values.
In Kansas City, rents grew at 10.2 percent year-over-year in May, compared to just a 0.2-percent increase in home values. In booming San Francisco, even a 10.7-percent home value appreciation rate couldn’t keep up with 15-percent rental growth.
As rents have grown, wages remain relatively stagnant, meaning more and more of a renter’s income is being dedicated to rent instead of saving for a down payment. This forces renters to forego buying and rent longer, feeding into the high demand that pushed up rents in the first place. It also means renters may struggle to pay for medical care, repay student loans, or save for retirement.
Check out the 5 metros where rents outpaced home values the most in May.
from Zillow Blog - Real Estate Market Stats, Celebrity Real Estate, and Zillow News http://feedproxy.google.com/~r/ZillowBlog/~3/ZLF4j-J02sE/
via Reveeo
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