Zillow Group - ZG STOCK NEWS

The Zillow 2021 Mover Report reveals that over 11% of Americans have moved during the pandemic, contributing to the ongoing Great Reshuffling. This trend is fueled by factors like remote work, with 70% of homeowners comfortable moving post-vaccine. The report indicates that 2.5 million additional households may enter the market, driven by increased confidence from COVID-19 vaccination. While the pandemic has introduced stress into moving, 80% of recent movers felt their move was worthwhile. The Sun Belt cities are emerging as popular destinations for relocators.

As the federal eviction moratorium nears its expiration on March 31, 2021, a Zillow analysis reveals over 3 million renters are at risk of eviction, with forecasts suggesting between 130,000 to 660,000 households could face eviction. The analysis highlights the urgent need for federal support, stressing that while many renters may fear eviction, not all will be evicted as landlords may opt for repayment plans. The recently passed federal stimulus includes $45 billion in rental aid, yet distribution challenges persist, raising concerns about a potential eviction crisis without effective governmental action.

According to Zillow's February Market Report, home values in the U.S. rose by 1.1% to $272,446, marking the fastest monthly appreciation since 1996. Annual growth accelerated to 9.9%, with the typical home gaining $24,473 in value. However, rent growth slowed, with only a 0.5% increase year-over-year, indicating a challenging landscape for renters, especially in affordable areas. Notably, expensive markets saw significant rent declines, reflecting a shift towards homeownership during the pandemic. Mortgage rates have also risen to 2.98%, still historically low.

As the spring home buying season approaches, a recent Zillow survey reveals that many Americans lack understanding of credit scores and their impact on mortgage qualifications. Only 47% know that credit scores can affect mortgages until closing, and just 41% are aware of the six-month wait after taking a car loan before applying for a mortgage. A strong credit score leads to better loan terms, while poor scores can hinder approvals. Currently, first-time homebuyer credit scores average around 740, significantly higher than pre-crisis levels, indicating improved financial profiles.

A new Zillow analysis indicates that a refundable, advanceable tax credit of up to $15,000 for first-time homebuyers, proposed by President Biden, could significantly boost homeownership among renters. Currently, 9.3 million renter households could afford the monthly mortgage payments for median homes in their areas with a 3.5% down payment. This tax credit could help overcome the primary barrier of saving for a down payment. However, the initiative may also inadvertently favor white and Asian renters due to systemic inequities in credit access, while rising home prices could limit its effectiveness.

On March 11, 2021, Zillow Group (NASDAQ: Z, ZG) announced plans to hire over 2,000 employees, increasing its workforce by approximately 40%. This initiative supports the company's growth and reflects a booming real estate market. The majority of new positions will be remote or hybrid, covering roles in tech, mortgage, and product development. Zillow's Distributed Workforce Model promotes inclusivity and flexibility, enhancing employee satisfaction. Recently, Zillow was recognized in the Bloomberg Gender Equality Index and the Human Rights Campaign's Corporate Equality Index for its commitment to workplace equality.

Zillow's latest research reveals that home buyers are increasingly prioritizing luxury kitchen features due to pandemic lifestyle changes. Key findings include a 4.9% sale premium for homes with steam ovens and other desirable features like new and smart appliances, which also command premiums ranging from 2.7% to 3.6%. The study analyzed over 1 million homes sold in 2020, emphasizing the importance of kitchens as central spaces for functionality and aesthetic appeal. Sellers are encouraged to highlight these luxury amenities to enhance property value during the current strong housing market.

Zillow's recent survey reveals that 39% of millennials are comfortable purchasing a home online, with 59% open to making offers after virtual tours. The research indicates a significant shift in shopping behavior among millennials, who also prefer digital tools, including 82% wanting 3D virtual tours and 85% liking digital floor plans. With 6.4 million new households expected by 2025, demand for housing is projected to remain strong. Technology adoption for home buying is expected to outlast the pandemic, offering ease and efficiency in transactions.

A new Zillow analysis reveals that limited access to credit-building products significantly affects Black and Latinx Americans, hindering their homeownership opportunities. Approximately 26 million Americans lack a credit record, with many living in 'credit insecure' areas. Nearly 72% of home buyers require loans, especially among Black (78%) and Latinx (77%) buyers. The analysis suggests that improving credit reporting and expanding access to small lenders could help bridge the racial homeownership gap. Current policy proposals aim to include non-traditional data for establishing credit histories.