It’s a good time to own a home. Values are up, people want to buy, and homes are selling quickly. It’s the renters, though, that are struggling with confidence as they look to the future.

  • Homeowner confidence in the housing market is increasing while renter confidence in buying and affordability goes down, Zillow says.
  • The widest gap between owner/renter confidence is in San Francisco, where 71 percent of owners think it's a good time to sell and just 13 percent of renters think it's a good time to buy.
  • Chicago has the smallest gap in differing feelings among owners and renters about the housing market.

It’s a good time to own a home, according to Zillow. Values are up, people want to buy, and homes are selling quickly. However, renters are struggling with confidence as they look to the future, the real estate research team says.

Zillow and Pulsenomics, LLC conducted a semi-annual survey over the year to determine confidence among homeowners and potential homeowners across the U.S. The Zillow Housing Confidence Index (ZHCI) bases results off 10,000 surveyed renters and homeowners.

The ZHCI at this point in the year is 67.3, up 0.4 from January and 0.8 from the same time last year.

[Tweet “Owners and renters view housing market differently”]

The ZHCI is made up of three other sub-indexes that include market conditions, housing expectations and homeownership aspirations. Each sub-index rose from the year prior, which ultimately pushed overall confidence up.

Homeowners, renters view the future differently

Homeowner confidence rose to 71.3 in July, up 1 point from January and 1.7 points from the previous year. Renter confidence dropped 0.3 points, to 61.2, signaling a difference in opinion about the future of the housing market.

According to Zillow, the 10.1 points between renter confidence and homeowner confidence is the highest difference since Zillow began conducting the survey at the beginning of 2014.

The index showed Miami had the smallest gap between homeowner and renter opinions about buying and selling a home.

Seattle, on the other hand, had the largest difference in opinions. Rent in Seattle has increased higher than any other metro in the country in the last year, while home values increased 11 percent.

confidence

When Zillow began monitoring national homeowner and renter thoughts on the market in 2014, 50 percent of owners said it was a good time to sell, and 48 percent of renters thought it was a good time to buy. Now, however, 70 percent of owners think it’s a good time sell, and 38 percent of renters think it’s a good time to buy.

Confidence among those who don’t own a home has waned

San Francisco has the widest gap of any metro in the country when it comes to owner and renter confidence, with 73 percent of homeowners thinking it’s a good time to sell and 13 percent of renters saying it’s a good time buy. Zillow’s records for San Francisco show a median home price of $1.1 million and median rent of $4,450.

[Tweet “Renter’s confidence in buying a home is decreasing, report shows”]

On the flip-side of that massive difference is Chicago. The Windy City has the smallest difference between opinions about selling and buying, separated by just 5 percent. In Chicago, 52 percent of owners say it’s a good time to sell, while 47 percent of renters think it’s a good time to buy.

Both San Francisco and New York share a 50/50 split of renter opinions about being able to afford a home.

Zillow concludes that this puts owners and renters in a funny situation: Homeowners know it’s a good time to sell because the demand is so high, but that also means having to find a new home, which is difficult. Renters are struggling to afford what homes are available, and with dropping new construction, inventory shrinks.

Email Britt Chester

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×