Zillow Group Inc Stock Price, News & Analysis

The recent Zillow analysis reveals 5.7 million 'missing' households in the U.S. due to low household formation rates since the Great Recession. This shortfall suggests persistent housing demand, as many young adults remain living with parents or roommates. The overall affordability crisis continues to hinder homeownership, with factors like underbuilding and rising rents exacerbating the issue. Despite the pandemic's impact, the long-term outlook indicates strong housing demand driven by the aging Millennial population and ongoing economic recovery.

Zillow's analysis highlights that Black renters may benefit most from pandemic-driven telework, making first-time homeownership more attainable. The study reveals that in high-value metro areas, Black renters are 29% more likely to purchase homes in less expensive regions. Despite this advantage, significant disparities in homeownership persist, with 75% of white households owning homes compared to just 44% of Black households. While telework could assist 4.5% of all renters in affording homes elsewhere, it is not a comprehensive solution to existing affordability challenges.

Zillow's latest Real Estate Market Report indicates significant growth in home values and sales, driven by high demand amid tight supply. In October 2020, home values increased 1% month-over-month, marking the fastest growth since 2005, with typical home values now at $262,604. The annualized rate of home sales reached 6.85 million, the highest since 2005, and is expected to maintain strong momentum into 2021. Meanwhile, rental markets are cooling, especially in coastal cities, with average rents declining by 0.1% to $1,751.

Zillow Group (NASDAQ: Z, ZG) announced its participation in two financial conferences on December 1, 2020. CFO Allen Parker will join a fireside chat at 11:00 a.m. ET during the Nasdaq Virtual Investor Conference. Concurrently, President Jeremy Wacksman will participate in a chat at 5:30 p.m. ET at the Credit Suisse 24th Annual Technology Conference. Both events will be available for live viewing and replay on the company's Investor Relations website. Zillow is focused on enhancing real estate transactions through technology and offers services including Zillow Offers and Zillow Home Loans.

Zillow's new research shows an increase in Gen Z renters, with 34% moving from family homes in the past year, up from 20%. While most new renters pay more, 57% report finding better rental deals, often thanks to concessions like free rent. As of October, 34% of rentals offered concessions, significantly higher than 16% in January. Effective savings from these concessions could equate to two months' free rent. However, Gen Z still faces high unemployment, with 10.2 million young adults living at home and unemployed.

In October 2020, New York City home buying surged, reaching levels not seen since May 2019, according to StreetEasy Market Reports. In Manhattan, 993 homes went under contract, and Brooklyn hit a record with 824 pending sales. The Queens market showed a price increase of 1%. However, Manhattan's median sale-to-list price ratio fell to 88.6%, marking a significant decline. Favorable interest rates and price cuts contributed to this buying momentum, although future sales may slow if COVID-19 cases rise. The median asking prices were $1,385,000 in Manhattan, $975,000 in Brooklyn, and $650,000 in Queens.

According to a recent Zillow analysis, the share of homes sold above their listing price reached 22.4% in September 2020, marking an increase from 20.2% in August and a significant rise compared to around 15% in September of 2018 and 2019. This trend indicates a robust housing market, driven by intense buyer demand, a 37.4% drop in inventory year-over-year, and homes selling 17 days faster than last year. The ongoing demand is attributed to low mortgage rates and shifting housing needs, suggesting a competitive market likely to persist into 2021.

Zillow Group (NASDAQ: Z, ZG) announced its participation in two upcoming financial conferences. CEO Rich Barton will engage in a fireside chat at 1:20 p.m. ET on November 18, 2020, during the RBC Capital Markets Technology, Internet, Media and Telecommunications Virtual conference. CFO Allen Parker will speak at 2:00 p.m. ET on November 16, 2020, at the Needham Virtual Internet Services Conference. Webcasts of both chats will be available on the Investor Relations website.