Zillow Group, Inc. Class C Capital Stock - Z STOCK NEWS

Zillow Home Loans reports that 15% more borrowers purchased mortgage points in 2022 than in 2021 as interest rates hover around 6%. Nearly 45% of conventional primary home borrowers opted for points to lower monthly payments. This reflects a significant increase from 29.6% in 2021 and a consistent rise from 27.3% in 2019. In cash-out refinance scenarios, 57.8% of borrowers chose to buy points in 2022. Buyers with lower incomes are more likely to purchase points, particularly for homes in the top and middle price tiers. As home values remain about 25% above historical affordability norms, the strategy of buying points is becoming more prevalent among those seeking to ease monthly financial burdens.

The latest Zillow analysis, dated April 20, 2023, reveals significant trends in the housing market, particularly for entry-level home buyers. Notably, the least-expensive one-third of homes experienced a remarkable 8% annual price increase, amounting to nearly $13,000. In contrast, the most expensive homes faced a 1% depreciation, marking the first decline in over a decade. This year, entry-level buyers are encountering fierce competition and limited inventory, with only a 1% increase in lower-tier homes compared to up to 13% for higher tiers. Mortgage interest rate hikes are exacerbating affordability issues, particularly in expensive markets like San Francisco and Seattle, where values fell by 14% and 11% respectively. Overall, newcomers should prepare for potential bidding wars amid rising prices and tight inventory.

The latest Zillow survey reveals that over half of Gen Zers (52%) and millennials (57%) believe they would need to win the lottery to afford a home, reflecting the daunting challenges of current housing affordability. The survey indicates that 95% of Gen Z and 94% of millennials would need to make significant lifestyle changes to pursue homeownership. The housing affordability crisis has worsened, with home values rising by 3% year-over-year and mortgage payments averaging $431 more than last year. As they face a typical down payment of around $67,000, many are optimistic about buying a home within five years. The survey highlights the gap between aspirations and reality for younger generations, emphasizing the need for financial strategies and resources, such as Zillow's tools for down payment assistance and mortgage calculations.

According to a recent report by Zillow, Housing Choice Vouchers are significantly lagging behind rising rents, with voucher values increasing by only 7% compared to 18% for rents during the pandemic. This disparity leaves over 19 million eligible households struggling, as there are fewer than 2 million vouchers available nationwide. The analysis reveals that in most major U.S. metros, there are nearly 10 times the number of eligible households compared to available vouchers, with Orlando noted for the highest mismatch. Zillow also emphasizes the need for better funding and more affordable housing to address these challenges, as many families face economic hardship or potential homelessness.

The latest Zillow survey reveals that Gen Z pet owners prioritize their pets' needs over partners and children when considering home purchases. Conducted by The Harris Poll, the survey found that 60% of Gen Z adults deem pet-friendly features essential, with 48% favoring a fenced backyard. Notably, 22% of Gen Z pet owners would move if their home was unsuitable for their pet, compared to only 12% for partners. The report highlights a growing trend, with 73% of homebuyers now owning pets, a significant increase from 2020. As this demographic enters the housing market, the demand for pet-friendly homes is expected to rise, making listings with such features more competitive. Homes with fenced backyards tend to sell faster than those without, indicating a shift in buyer priorities.

Zillow Group, Inc. (NASDAQ: Z, ZG) will release its first-quarter 2023 financial results after market close on May 3, 2023. A conference call and webcast to discuss these results will occur at 2 p.m. PT / 5 p.m. ET. The financial results and details for the live webcast will be available on the company's Investor Relations website. Zillow Group is recognized as the most visited real estate website in the United States, offering services for selling, buying, renting, and financing real estate. Its affiliates include brands like Premier Agent, Zillow Home Loans, and Trulia. For additional investor information, details can be accessed through their dedicated portal.

The rising costs of renting have disproportionately affected renters of color, according to a recent report from Zillow. Black, Latinx, and Asian American Pacific Islander renters face application fees 43% higher than their white counterparts. A significant 30% of AAPI renters report security deposits of at least $1,000, compared to just 17% of white renters. Zillow’s Consumer Housing Trends Report shows that Black and Latinx renters are nearly twice as likely to submit five or more applications, often incurring $50 fees per application. Zillow aims to alleviate these costs with an online application process, allowing renters to apply for multiple rentals for a flat fee. However, most renters (85%) still report paying security deposits averaging between $500 and $999, further straining their finances.