Zillow Group Inc - Z STOCK NEWS

Zillow's latest data reveals a cooling rental market, with 33.2% of rental listings offering concessions in July 2024, up from 25.4% a year earlier. This trend is driven by an apartment construction boom, with June seeing the highest number of completed multifamily units in 50 years. Rent growth has slowed to 5.1% year-over-year, a significant decrease from the 22.3% increase in the previous two years.

Six major metro areas, including Raleigh, Charlotte, and Atlanta, have over 50% of rentals offering concessions. The rental vacancy rate remains at 6.6%, the highest since winter 2021. While the supply boom continues, the number of units under construction has decreased for eight consecutive months, suggesting a potential peak in the market.

Zillow Group (Nasdaq: Z and ZG) has announced a significant leadership change. Jeremy Wacksman, the company's longtime executive and Chief Operating Officer, has been promoted to Chief Executive Officer and appointed to the Board of Directors. Wacksman succeeds co-founder Rich Barton, who will remain on the Board and become co-executive chair alongside co-founder Lloyd Frink.

Wacksman, who joined Zillow from Microsoft in 2009, has held various leadership roles within the company, including product leader, chief marketing officer, and most recently, chief operating officer. During his tenure, he has been instrumental in driving innovation, growing Zillow's businesses, and overseeing key departments such as engineering, product, design, marketing, sales, and industry relations.

Under Wacksman's leadership, Zillow has seen significant growth and innovation, including the development of its housing super app strategy, diversification of revenue streams, and successful acquisitions of industry software solutions like Follow Up Boss and ShowingTime.

Zillow Group reported strong Q2 2024 financial results, outperforming the residential real estate industry for the eighth consecutive quarter. Key highlights include:

- Revenue of $572 million, up 13% year-over-year
- Residential revenue increased 8% to $409 million
- Rentals revenue grew 29% to $117 million
- Mortgages revenue rose 42% to $34 million
- Adjusted EBITDA of $134 million, or 23% of total revenue
- Net loss of $17 million, or 3% of total revenue

The company reported 231 million average monthly unique users and 2.5 billion visits, up 4% year-over-year. Zillow also announced the promotion of Jeremy Wacksman to CEO and his appointment to the Board of Directors.

Zillow's latest analysis reveals that luxury home values are outpacing typical home appreciation for the first time in years. The typical luxury home in the U.S. is now worth about $1,620,000, with values up 3.9% year-over-year, compared to 3.2% for typical homes. This trend reversal is attributed to luxury buyers being less affected by higher mortgage rates and often able to pay in cash.

Key findings include:

• Luxury home inventory is 46.9% below pre-pandemic levels, a larger deficit than the overall market
• Richmond has the hottest luxury market, with values up 16.5% year-over-year
• Austin is the only major market where luxury home values have declined
• 20.8% of luxury listings experienced a price cut in June, compared to 24.5% of all listings

A Zillow analysis reveals that the number of U.S. cities with $1 million starter homes has nearly tripled since 2019, rising from 84 to 237. California leads with 117 such cities, followed by New York (31) and New Jersey (21). Nationwide, the typical starter home is worth $196,611, but values have grown 54.1% over the past five years, outpacing the 49.1% increase for the typical U.S. home.

This trend has delayed first-time home purchases, with the median age of first-time buyers increasing to 35. The New York City metro area has the most cities (48) with million-dollar starter homes, followed by San Francisco (44) and Los Angeles (35). Markets with restrictive building regulations tend to have more cities with high-priced starter homes and lower homeownership rates.

Zillow and Thumbtack have revealed the top 10 no-demo renovation projects for 2024 that can boost buyer interest in homes. These affordable upgrades, costing less than $5,000 on average, can significantly increase daily saves and shares on Zillow's platform. The list includes:

1. Window boxes (48% more saves, 52% more shares)
2. Open shelving (37% more saves, 45% more shares)
3. Painted brick (31% more saves, 39% more shares)
4. Vintage touches (28% more saves, 31% more shares)
5. Outdoor TV (28% more saves, 26% more shares)
6. Picket fence (27% more saves, 31% more shares)
7. Pergola (20% more saves, 24% more shares)
8. Fire pit (19% more saves, 23% more shares)
9. Outdoor sound system (18% more saves, 19% more shares)
10. Smart lighting (18% more saves, 23% more shares)

These features can help homes sell faster or for more money by increasing buyer appeal without requiring major renovations.

Zillow Group (Nasdaq: Z and ZG) has announced the release date for its second-quarter 2024 financial results. The company will unveil its financial performance after the market closes on Wednesday, August 7, 2024. Following the release, Zillow will host a conference call and webcast at 2 p.m. PT / 5 p.m. ET to discuss the results in detail. Investors and interested parties can access information about the financial results, including a link to the live webcast and a recorded replay, on Zillow Group's Investor Relations website. To participate in the live event, attendees must register through the provided link.

Zillow's latest monthly report reveals a shifting housing market as buyers step back from the peak shopping season. Key findings include:

1. Inventory is growing, up 4% from May to June and 23% above last year's levels.

2. Nearly 1 in 4 sellers (24.5%) cut home prices in June, the highest rate for this time of year since 2018.

3. Home value growth has slowed to 3.2% annually, down from a 2024 peak of 4.6% in March.

4. Affordability remains a challenge, with new mortgages affordable in only 11 of 50 major markets.

5. Competition is easing, especially in Southern markets, with homes typically on the market for 15 days before an offer is accepted.

These trends suggest a market shifting towards more balance between buyers and sellers, though affordability issues persist.

New data from Zillow reveals that while rents remain highest in large coastal markets like New York City, San Francisco, and Boston, the fastest-growing rents are in smaller Northeast and Midwest markets, with Hartford and Cleveland leading the way.

Hartford's rents have surged 7.8% year-over-year, followed by Cleveland at 7.2% and Louisville at 6.8%. Nationally, rents have increased by 3.5% from last year, marking the fastest annual growth since July 2023.

The typical rent in New York City stands at $3,472, with Manhattan's median asking rent at $4,400. San Jose and Boston also feature high typical rents at $3,429 and $3,127, respectively.

These trends are influenced by remote and hybrid work models, which allow renters to opt for more affordable areas, despite occasional commutes to larger cities.