Zillow Group Inc - Z STOCK NEWS

The U.S. housing shortage has grown to 4.5 million homes in 2022, up from 4.3 million the previous year, exacerbating the housing affordability crisis.

Despite the pandemic-era construction boom, only 1.4 million homes were built in 2022, while 1.8 million new families were formed. This imbalance has driven up home prices, making homeownership increasingly unattainable for many.

Regions with stricter land-use regulations are particularly affected, with fewer people able to afford mortgage payments on typical homes. The Wharton Residential Land Use Regulatory Index highlights that highly regulated markets see persistent housing supply shortages.

In 2023, approximately 1.45 million homes were completed, indicating some progress. Experts advocate for zoning reforms to increase housing density and improve affordability.

The latest Zillow market report reveals a significant increase in home listings, with a 13% rise compared to last year, signaling that homeowners are breaking free from rate lock. However, buyer hesitation persists, leading to a 22% year-over-year increase in inventory. Despite this, inventory remains 34% below pre-pandemic levels. Home value growth has slowed, with typical home values appreciating by 3.9% year-over-year in May, down from 4.4% in April. Zillow forecasts a modest 0.4% increase in home values for 2024, with a 1.4% decline anticipated through May 2025. Market conditions are becoming more favorable for buyers, with nearly 24% of homes for sale receiving price cuts in May. Regional disparities exist, with the West Coast and coastal South seeing the highest increase in new listings. Major Florida markets lead in overall inventory growth due to strong new construction.

Zillow's latest analysis highlights Phoenix as the leading market for new college graduates in 2024. This ranking is based on factors including rent affordability, job prospects, and the number of residents in their twenties. Phoenix's strong job market and generous rental concessions make it the top choice, with graduates expected to spend 34.5% of their median entry-level income on rent. Albuquerque, Colorado Springs, San Antonio, and Portland, Oregon, also make the top five. Conversely, Miami and the New York City metro area rank low due to high rental costs. Des Moines offers the most affordable rents, with graduates spending less than a quarter of their income on rent. Charlotte stands out for offering the highest percentage of rental concessions. Zillow's data aims to help new grads find affordable living options while starting their careers.

The homeownership rate for Black households has grown faster than average since 2019, but remains below the 2004 peak of 49.7%, currently at 46%. Almost 1 in 4 Black mortgage applicants are denied, compared to 1 in 10 white applicants, primarily due to credit history issues. The value of Black-owned homes is significantly lower, contributing to a $3 trillion wealth gap between Black and white families. Zillow is leveraging technology to mitigate these disparities, advocating for changes to credit scoring to include rent payments and making down payment assistance easily accessible.

Despite improvements, the gap in homeownership rates and home values between Black and white households remains substantial, affecting wealth accumulation and financial stability.

Stagwell (STGW) announced a star-studded lineup for Sport Beach 2024, held during the Cannes Lions International Festival of Creativity from June 17-20. NBA's Carmelo Anthony will host the first Wine & Spirits Festival. Participating athletes include Eric Cantona, Karen Carney, Mary Earps, Draymond Green, and DeAndre Hopkins. The event will feature brand partnerships with Gatorade, Kansas City Chiefs, Snapchat, and BOSS. Activities will include pickleball clinics led by Patrick Mouratoglou and a range of podcast recordings. Stagwell aims to merge sports, business, and culture, offering a unique platform for athletes and brands to engage authentically with consumers.

Zillow has released its Fair Housing Classifier as open-source technology to enhance fair housing practices in AI-driven real estate conversations. This tool helps detect and address potential biases in AI outputs, ensuring compliance with fair housing laws. The classifier identifies discriminatory inputs or outputs related to protected characteristics, allowing developers to intervene appropriately. Zillow's commitment to transparency and equity is underscored by making the tool freely accessible on GitHub, encouraging collaboration and improvement. With AI's growing role in housing, this initiative aims to ensure that technology advancements do not compromise equity and fairness in real estate, especially for marginalized groups.

Survey data from Zillow reveals that despite long-standing fair housing laws, discrimination remains prevalent, with 57% of respondents reporting experiences of housing discrimination. The Fair Housing Classifier aims to address these issues by promoting equitable and transparent real estate practices.

Zillow's latest report reveals that Texas and Florida dominate the top places for home buyers based on their new market heat index, which places seven out of the top ten markets in these states. Key markets like Austin and San Antonio have surpassed pre-pandemic inventory levels, easing competition.

Despite high mortgage rates and increased inventory, the U.S. market remains a seller's market. Home values have increased by 1.2% from March to April and are 4.4% higher than last year, with the typical home now valued at $359,402.

Buffalo, NY ranks as the best market for sellers, followed by coastal tech hubs and Midwest metros. The share of listings with a price cut reached 22.4% in April, the highest in six years, potentially indicating softening demand. Homes sold in 13 days on average, three days slower than last April.

Overall, inventory climbed 18% year-over-year, while new listings went up nearly 16%. However, total inventory remains 36% below pre-pandemic levels.

Zillow Home Loans introduces BuyAbility, a new tool that helps buyers understand what they can afford by combining real-time mortgage rates with credit score and income. This tool provides personalized estimates of home price and monthly payments, giving insight into loan qualification likelihood. BuyAbility aims to empower buyers to make informed decisions about homeownership.

A recent Zillow survey found that 44% of adults would buy their childhood home if cost was not an issue. The survey also revealed that younger generations, particularly those born in the 1980s and 1990s, are more likely to desire their childhood homes. However, affordability remains a significant barrier, with many adults unable to afford their childhood homes at today's prices. Despite this, adults continue to dream of certain features in their ideal homes, with practical amenities like air conditioning, walk-in closets, and laundry rooms topping the list.