Zillow Group Stock Price, News & Analysis

Nearly half of U.S. renter households are rent burdened, with Gen Z renters (ages 18-25) facing significant challenges. According to Zillow and StreetEasy's analysis of the 2022 ACS, 58.6% of Gen Z renters nationwide spend more than 30% of their income on housing. In 21 of the 30 largest U.S. metros, this share is even higher, with cities like San Diego, Los Angeles, and Sacramento seeing nearly three-quarters of Gen Z renters rent burdened. Comparatively, 60.2% of Millennials were rent burdened at the same age in 2012. Rent burden among young adults has seen a decline in cities like Austin but an increase in Houston. Zillow and StreetEasy are working to reduce upfront rental costs and provide tools to help renters manage affordability.

According to a Zillow analysis, America's housing stock is growing faster than pre-pandemic levels, with builders completing about 1 million single-family homes in 2023, the second-highest annual total since the global financial crisis. This represents an 11% increase from 2019 completions. To achieve this pace, builders have shifted towards higher density housing, with starts for attached single-family homes rising 3% year-over-year, while detached single-family home starts declined 9%.

The analysis also reveals that markets with faster-rising home values have seen a greater surge in permitting. Houston, Dallas, and Phoenix have issued the most single-family permits since 2020. However, the overall pace of construction is slowing, with 946,000 single-family home starts in 2023, 7% fewer than in 2022. This shift towards more affordable, space-efficient designs is seen as a response to the ongoing housing affordability crisis and the need to fill a shortage of 4.5 million homes.

Zillow Group, Inc. (Nasdaq: Z and ZG) has announced it will release its third-quarter 2024 financial results after market close on Wednesday, Nov. 6, 2024. The company will host a webcast and conference call to discuss the results at 2 p.m. PT / 5 p.m. ET on the same day.

Investors and interested parties can access information about Zillow Group's financial results, including a link to the live webcast and recorded replay, on the company's Investor Relations website. Registration for the live event is available through a provided link.

Zillow's latest market report reveals increased activity in the housing market due to lower mortgage rates. Home sales and new listings moved closer to pre-pandemic norms in September, with sales down 22.2% and new listings down 17% compared to pre-pandemic averages. The typical U.S. home value is now just under $361,000, down 0.2% from August but up 2.4% year-over-year.

Lower mortgage rates boosted buying power, with a two-year low of 6.08% in late September increasing affordability by over $40,000 for some buyers. The share of listings with price cuts decreased to 25.1% in September. Buyers markets are spreading across the Southeast, with 10 of the 50 biggest metros now favoring buyers, primarily in Florida, Georgia, Texas, Tennessee, and Louisiana.

The report warns that mortgage rates remain volatile, emphasizing the importance of buyers being prepared for market fluctuations.

Recent Zillow research reveals that Hispanic homeowners have made significant progress in narrowing the home value gap with white homeowners over the past two years. The gap is now at its narrowest ever, with Hispanic-owned homes worth 11.9% less than those owned by non-Hispanic white households, down from 12.1% last year and 12.4% in December 2021.

Key findings include:

• More than two-thirds of the 100 largest metro areas saw the home value gap decrease for Hispanic homeowners over the past year.
• Hispanics represent 18% of prospective buyers but only 13% of successful purchasers.
• Hispanic borrowers face higher mortgage denial rates (18.8%) compared to non-Hispanic whites (10%).
• The home value gap for Black homeowners has also slightly narrowed to 17.7% from 17.9% over the past year.

While progress is being made, challenges remain in achieving homeownership equity for Hispanic and other minority communities.

Zillow is introducing climate risk data on for-sale property listings across the U.S., provided by First Street. Home shoppers will gain insights into five key risks: flood, wildfire, wind, heat, and air quality. The feature includes risk scores, interactive maps, and insurance recommendations. Available on Zillow's iOS app and website by year-end, with Android availability expected early next year.

The new climate risk section offers detailed, property-specific data for each risk category, showing current and future impacts, along with insurance requirements. Zillow's analysis reveals an increase in new listings with major climate risks compared to five years ago. The partnership with First Street aims to deliver accurate and reliable data to home shoppers, helping them make informed decisions about future homes and insurance needs.

Zillow Rentals' new research reveals shifting preferences in rental amenities. Off-street parking and in-unit laundry top the list, contributing to nearly twice as many saves and shares per day. Surprisingly, pet-friendly turf areas, air filtration, and community happy hours are gaining popularity, outperforming traditional luxury amenities like fitness centers and pools.

Renters are prioritizing practical and community-focused features that enhance their lifestyle and budget. Coworking spaces are preferred over business centers, while unique amenities like bowling alleys and putting greens drive significant engagement. Modern farmhouse features such as butcher block countertops and barn doors also contribute to increased interest.

This shift comes as new construction apartments enter the market, slowing rent price growth. In August, 34.3% of rental listings on Zillow offered concessions to attract tenants, the highest share since March 2021.

According to a new Zillow Home Loans analysis, monthly mortgage payments are less expensive than rent in 22 of the 50 largest U.S. metros. Recent dips in mortgage rates have significantly reduced monthly payments, making homeownership more attainable in certain areas. New Orleans, Chicago, and Pittsburgh offer the greatest savings when comparing rent to mortgage payments.

Nationally, the typical rent payment is $2,063 per month, while the typical mortgage payment is $1,827, resulting in a $236 monthly savings for homeowners. However, additional costs such as taxes, insurance, and maintenance should be considered for both renting and homeownership.

Zillow Home Loans has introduced a new tool called BuyAbility, which helps prospective buyers determine their home affordability and likelihood of mortgage pre-approval. With inventory up 22% compared to last year, buyers are gaining bargaining power in the current market.

Zillow's latest market report reveals a window of opportunity for home buyers due to lower mortgage rates and rising inventory. The monthly payment on a typical home has fallen by more than $100 nationwide since May, improving affordability. Key findings include:

- The Zillow market heat index shifted from favoring sellers to neutral in July.
- Homes are taking longer to sell, but still faster than pre-pandemic times.
- Nearly 1.18 million homes are on the market, the highest since September 2020.
- The share of listings with price cuts decreased in August to just under 26%.
- One-third of homes sold in July went for more than asking price.

These trends suggest that competition among buyers could extend into the fall, contrary to typical seasonal patterns. The report highlights opportunities for both buyers and sellers in this evolving market landscape.