The national Zillow Rent Forecast was reported January 22, expecting rent appreciation to cool a bit in 2016. According to the report, rent increases are expected to slow to an annual rate of 1.1 percent by December 2016.
- National median rent was $1,381 at the end of 2015, and is forecasted to uptick to $1,396 over the next 12 months.
- The slowdown in rental rates could make it easier on renters. Incomes are predicted to rise at a faster rate in many markets.
- Home values rose 4 percent to a Zillow Home Value Index of $183,500 in December.
“The slowdown in rental appreciation will provide some relief for renters who’ve been seeing their rents rise dramatically every single year for the past few years,” said Zillow chief economist Dr. Svenja Gudell.
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“However, the situation remains tough on the ground: rents are still rising and renters are struggling to keep up.”
In Chicago, renters may see a dip in prices, according to the ZRI.
- The December 2015 Zillow Home Value Index was $193,000.
- The ZRI for December 2015 was $1,633.
- December 2016’s ZRI is $1,611, making for a 1.4 percent decrease.
See here for more Zillow real estate data for Illinois or first-time buyer data in Chicago.