Zillow Group Inc Stock Price, News & Analysis

The latest Zillow market report for August reveals moderated growth in home values and rents, indicating a shift toward a more balanced housing market. Home values increased by 1.75% month-over-month, down from 1.97% in July, marking the third-largest monthly growth recorded. Inventory rose 4.1% over July, reducing the year-over-year deficit to 22.7%. The typical U.S. home value is now $303,288, reflecting a 17.7% annual increase. Additionally, monthly rent growth decelerated to 1.7%, despite a record 11.5% annual appreciation.

Zillow's latest research reveals that nearly 40% of U.S. workers are uncertain about their return to in-person work, affecting decisions about relocation. A significant 84% prefer remote work flexibility, with 44% desiring full-time remote options. Millennials and Gen Z are particularly willing to switch jobs for more favorable work arrangements. Zillow notes that this shift could enhance economic opportunities and housing affordability, as remote workers prioritize larger, more affordable homes. The relocation rate surged by over 45% after Zillow implemented a permanent flexible work policy.

According to a recent Zillow analysis, iBuyers sold over 15,000 homes in Q2 2021 for nearly $5.3 billion, marking an all-time high and a substantial increase from Q1. iBuyers now hold 1% market share of U.S. home sales, with significant activity in cities like Atlanta, Phoenix, and Dallas. The analysis highlights the convenience of iBuying services for homeowners, who are increasingly opting for this method even in a competitive market. Notably, homes sold by iBuyers typically fetched 9.6% more than their purchase price, indicating a healthy appreciation trend.

Registration is now open for Zillow's inaugural hackathon aimed at students from Historically Black Colleges and Universities (HBCUs), taking place virtually from September 23. The competition offers nearly $90,000 in cash prizes, with the first-place team winning $20,000 and their school receiving $25,000. Participants will engage in workshops and mentorship, regardless of their coding skills. This initiative, in collaboration with the United Negro College Fund and Black Tech Ventures, aims to enhance the tech talent pipeline and encourage careers in technology.

Zillow has launched a children's e-book titled The Girl Who Didn't Want to Move to assist families during relocations. The book, created with FIG, features a fictional girl named Iris and addresses the emotional challenges of moving. Zillow's survey indicates that 14% of parents with children moved in the last year, compared to 9% without children. Remarkably, 81% of parents feel their last move was worthwhile. Zillow supports Covenant House by donating for each e-book download, aiming to raise up to $25,000.

Zillow Group (NASDAQ: Z and ZG) will present at the Piper Sandler Global Technology Conference on September 13, 2021, at 10:30 a.m. PT. Chief Operating Officer Jeremy Wacksman will participate in a fireside chat moderated by Tom Champion. Attendees can register in advance online. Zillow Group aims to transform the real estate experience, offering services for buying, selling, renting, and financing homes. It operates popular platforms like Zillow and Trulia, providing transparency and seamless service to its customers.

Zillow Group highlights a trend where rents in major U.S. metros surpass typical mortgage payments, making renting a viable option for homeowners. A recent report indicates that homeowners can significantly profit by renting out their properties in cities like Memphis ($556 rent-mortgage difference), Miami ($522), and Atlanta ($424). Zillow's enhanced tools, such as the Rent Zestimate, offer improved accuracy for rental pricing. This shift in the real estate market, driven by remote work, presents new opportunities for landlords amidst recovering rent growth nationwide.

Zillow's latest market report reveals a significant recovery in U.S. rents and home values as of July 2021. Typical monthly rents reached $1,843, marking a 9.2% year-over-year increase. Home values also surged, with a national average of $298,933 (up 16.7% year-over-year). Despite record highs, the report suggests a potential rebalancing in the housing market with a 4.5% increase in inventory, indicating easing price pressures. However, affordability challenges may arise as demand continues to outpace income growth. Key metropolitan areas like Tampa and Phoenix reported the highest rent growth, while coastal cities lagged behind.

Housing affordability is declining as costs are rising faster than incomes, according to a new Zillow analysis. Mortgage payments as a percentage of income are forecasted to exceed 23.1% by year-end, up from 19.4% in June 2021. Strong demand and increasing prices are overshadowing low mortgage rates. Austin is expected to drop in affordability rankings by December, with new buyers projected to spend 30.1% of their income on mortgages. Rent affordability is also set to increase, moving from 29.96% to 30.2%, impacting budget for essentials.