ZILLOW GROUP INC - ZG STOCK NEWS

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.

Zillow's latest research indicates that specific home features can significantly enhance both sale prices and speed. Homes equipped with steam ovens, for example, can fetch up to 5.3% more, approximately $17,400, while doorbell cameras can aid faster sales by about 5 days. Personalized amenities like pizza ovens and soapstone countertops also show promising sale premiums. However, traditional features like tile countertops may decrease home value, with a 1.1% drop in expected selling price. The study analyzed data from 2 million home sales in 2022, highlighting trends that reflect modern buyers' preferences.

The homeownership rate for young single women fell to 24.5% in 2022, down from 28.6% in 2021, reversing years of progress due to challenges like lower salaries and a volatile job market. Young single men saw an increase to 33.1%. The analysis shows that single women now face significant obstacles in homebuying, with regions like Pittsburgh, St. Louis, and Detroit providing the highest share of affordable listings. In contrast, cities like Cincinnati and Kansas City exhibit the largest gender-based housing affordability gaps. Zillow emphasizes the need for creative solutions to address these challenges and offers resources to assist first-time buyers.

Zillow's latest market report highlights a record low in new home listings for February, driven by high mortgage rates, leaving buyers with limited options. The flow of new listings is nearly one-third lower than pre-pandemic levels and 22% lower than last year. Despite stabilized home values, which average $328,604—a 4% decline from the peak in July 2022—sales activity is sluggish, with 19% fewer pending sales year-over-year. The median time to pending is 17 days, suggesting that well-priced homes are still attractive. Zillow warns that volatility in rates may continue to impact buyer confidence in the spring selling season.