Latest news with #OrpheDivounguy
Bloomberg
3 days ago
- Business
- Bloomberg
Why It's Actually a Good Time to Buy a House, According to a Zillow Economist
For more than a decade, the price of housing in the US rose like a helium balloon, reaching records each year. But in 2025 gravity is finally taking over. Listings provider Zillow Group Inc. forecasts its Home Value Index—a proprietary estimate of what typical American homes are worth—will drop 0.8% by the end of the year, the first annual decline since 2011. For the lucky few in the position to buy, Zillow senior economist Orphe Divounguy advises they take advantage of this window of opportunity. Competition has been muted by high mortgage rates and broader economic jitters, including stubborn inflation and concerns about tariffs. Meanwhile inventory has grown, giving buyers more choice and leverage to negotiate; 27% of July listings included a price cut, the highest for any month since January 2018.
Axios
31-07-2025
- Business
- Axios
Denver is now a buyer's market for housing
Denver led the nation in price cuts on for-sale listings in June, signaling that sellers are getting nervous and buyers hold the upper hand. By the numbers: A Zillow analysis found 38% of real estate listings in the metro area reduced their prices, well above the national average of almost 27%. Both numbers set new records for the month. What they're saying: "The gap between buyers and sellers is shrinking. This is a healthy rebalancing," wrote Zillow senior economist Orphe Divounguy. The big picture: The shifting landscape comes after years of bidding wars and elevated prices in a period of significant growth during the COVID-19 pandemic. Denver is one of only a handful of metro areas where the housing inventory surpassed the national average.
The Hill
10-07-2025
- Business
- The Hill
US housing shortage grew to record 4.7M units, Zillow says
The U.S. housing shortage recently grew to a record 4.7 million homes, fueling an affordable housing crisis that's pricing families out of the American dream, according to a new Zillow analysis. The real estate website examined the latest census data and found the nation's housing deficit grew by 159,000 homes in 2023 despite a homebuilding surge over the past five years. While that's less than the housing deficit increased in 2022, when it rose by 257,000 homes, the growth shows the pandemic construction boom hasn't been enough to narrow the gap. 'The unfortunate fact is that we still don't have enough housing in this country for people who need it,' Orphe Divounguy, senior economist at Zillow, said in the report. The shortage is driving an affordability crisis that is pushing millions of families to double up and live with nonrelatives. In 2023, 3.4 million homes sat vacant and available for rent or sale, while 8.1 million families shared their homes with unrelated individuals, Zillow determined. The 4.7 million-unit gap is what the company defines as the housing deficit. More recent data shows the number of homes for sale has ticked up this year, but elevated mortgage rates and high prices mean affordability remains a challenge. Those headwinds have made it especially difficult for younger, first-time homebuyers to get a foot in the door. Baby boomers recently overtook millennials and now account for the largest share of homebuyers. Millennials are also sharing housing with nonrelatives more than any other generation, making up 38 percent of the families 'doubling up' in 2023, Zillow found. Of the nation's 50 largest metros, New York City had the biggest housing deficit, short more than 400,000 units, according to Zillow. It's hardly surprising, considering New York is the most populous city in the country and the average home there is now worth nearly $800,000, making affordable housing increasingly out of reach. Los Angeles had the second-largest deficit, with more than 450,000 families doubling up in shared housing compared to just 115,000 available units. Boston, San Francisco and Washington, D.C., also ranked among the top five largest housing deficits, although all three have seen their shortages improve from a year earlier. 10 metros with the largest housing deficits as of 2023 (Zillow analysis of Census data): There aren't enough affordable homes being built in the neighborhoods and cities where demand is highest. Part of the problem stems from strict zoning and building restrictions that have made new construction harder. But those rules vary widely from state to state and city to city, helping explain why some markets have become far less affordable than others. A recent Zillow analysis found that builders responded faster to the pandemic-era demand spike in areas with fewer building restrictions. Some of the cities that saw the largest builder response were Pittsburgh, San Antonio, Phoenix, Dallas and Columbus, Ohio. Meanwhile, places like Seattle, Baltimore, Detroit, Orlando, Fla. and Washington, were metros where builders underbuilt relative to expectations. 'We know what works: lower building restraints to allow for more density and less expensive housing,' Divounguy said in a statement. A separate 2025 study from RAND found that the cost of building multifamily housing in California is more than twice as expensive as it is in Texas. Much of the difference, the report said, is driven by state and local policies that contribute to long permitting and construction timelines and higher local development fees. It's no wonder that California now has 113 cities where starter homes now cost over $1 million. But even outside the Golden State, homeownership is becoming unrealistic for the average family. A household earning the median income in the U.S. would need a $17,670 raise to comfortably afford the mortgage payments on a typical home, not to mention the additional funds required for a down payment. The good news? Builders completed 1.45 million units in 2023, followed by an even stronger 1.63 million in 2024, both the highest annual totals since 2007, Zillow said.
Axios
06-06-2025
- Business
- Axios
A $91K salary is needed to afford rent in the Seattle area
You have to make nearly $91,000 per year to afford the typical monthly rent in the Seattle metropolitan area, according to a new report. Why it matters: That's about 23% higher than what a Seattle-area household would have needed to earn five years ago, per the analysis from Zillow. It's also about $10,000 more than the income needed to afford the typical rent nationwide, Zillow found. What they did: Zillow assumed that rent should take up no more than 30% of household income — a common standard for calculating affordability. Zoom in: By that measure, affording the typical Seattle area-rent — which came in at $2,271 in April — requires an annual income of $90,840. That's the 11th-highest income needed among the dozens of U.S. metros analyzed by Zillow. Yes, but: The median household income in the Seattle-Tacoma-Bellevue area was $110,744 in 2023 — well above what is needed to afford the typical monthly rent, per Zillow's analysis. That said, a single person may be in for more of a struggle. Census data pegged the per capita income in Seattle at $82,508 in 2023. What they're saying: "Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages," Orphe Divounguy, senior economist at Zillow, said in a news release.
Axios
03-06-2025
- Business
- Axios
What it costs to afford rent in Salt Lake City
Renters need to earn nearly $70,000 a year to afford the typical monthly rent in Salt Lake City, according to a Zillow analysis. Why it matters: Salt Lake City rent has surged 34% since April 2020, per Zillow, outpacing wage growth and making it harder for renters to avoid becoming rent-burdened. By the numbers: The annual income needed to afford rent in Utah's capital is roughly $11,000 less than the national average of $80,949. As of April, the typical monthly rent in Salt Lake is $1,747 — $233 below the national average. In 2023, the median household income in the city was $74,925, according to Census data. Between the lines: It's generally recommended to budget 30% of your monthly income for your rent or mortgage payment, but that benchmark is becoming harder to attain for many Americans. What they're saying: "This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment on a future home," said Orphe Divounguy, a senior economist at Zillow, in a statement.
