Zillow Research: The Most Important Housing Trends from the Past Year
By Maggie Wilson @ Real Estate Daily
February 6, 2018

The housing market has been recovering from its last crash for almost a decade now. Unfortunately, home prices have been rising too fast for most consumers, which has created vast affordability problems in the U.S. Here is a look at the most important housing trends over the past year:

Key Takeaways

  • Renters are coughing up almost 30% of their income every month
  • The new tax reform injected uncertainty into various parts of the housing market
  • Homeownership is divided along racial and economic lines
  • The mounting affordability problem is forcing some homeowners onto the streets
  • Foreign investment in real estate is booming worldwide
Source: Zillow

Brief

Here are the top articles from Zillow research over the past year:

Rental Market – Affordability concerns are affecting the rental market as well as homeownership. Renters now spend about 29.1% of their income on rent, up almost 4% from the historical average.

Tax Reform – The new tax plan made some big changes that will directly affect the housing market. The plan put a limit on state and local tax deductions, reduced the cap on mortgage interest deduction, and doubled standard deduction.

Inequality – There are still racial and economic divides in homeownership. Many problems were only exacerbated by the housing crash.

Affordability and Homelessness – The mounting affordability problems means a tighter budget for most people. The housing market has become so unaffordable, however, that many homeowners are becoming homeless.

Foreign Buyers – There has been an influx of foreign buyers and investment in recent years, and many fear it is pushing up home prices. Canada’s government already addressed the influx with a special tax.