Rents Higher Than Ever Before, Rental Crisis Worsens

rising rents(Jeff Sorg, OnlineEd) – In April, rents grew at four percent year-over-year, overtaking home values, which appreciated at an annual rate of three percent. According to April Zillow® Real Estate Market Reports, soaring rents outpaced home values in April for the first time in years, further deepening a “rental crisis” and signaling that home values are growing at a more normal pace.

Home values in April ticked slightly upward from March, to a national Zillow Home Value Index of $178,400 ­– a three percent increase over last April. The Zillow Rent Index (ZRI) rose four percent year-over-year, to $1,364.

The switch comes after years of rapid home-value increases sped along by the improving economy. U.S. home values peaked in 2007, and then crashed during the Great Recession between 2008 and 2010. Since then, they have risen rapidly, returning to their peak levels in many markets.U.S. homebuyers can expect to spend about 15.3 percent of their income each month on a typical house payment. Renters can expect to spend about 30 percent on a monthly rent payment.

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  This article was published on May 21, 2015. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.