Rents Gains Cool Down Nationally as More Multi-Unit Buildings Are
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 5, 2013--
TRLA) today released the latest findings from the Trulia
Price Monitor and the Trulia
Rent Monitor, the earliest leading indicators available of trends in home
prices and rents. Based on the for-sale homes and rentals listed on
Trulia, these monitors take into account changes in the mix of listed
homes and reflect trends in prices and rents for similar homes in
similar neighborhoods through January 31, 2013.
Rising Asking Prices Signal Strong Price Recovery
Indicating the strength of the home price recovery, asking prices rose
0.3 percent quarter-over-quarter (Q-o-Q) in January without seasonal
adjustment—despite the fact that prices typically fall during the
wintertime. Seasonally adjusted, prices rose 2.2 percent Q-o-Q.
Moreover, prices rose 0.9 percent month-over-month (M-o-M), the highest
monthly gain since the price recovery began. Year-over-year (Y-o-Y),
prices rose 5.9 percent; excluding foreclosures,
prices rose 6.5 percent.
January 2013 Trulia Price Monitor Summary
% change in
# of 100 largest
metros with asking-
% change in asking
Booming Housing Markets Have Both Price Gains and Healthy Fundamentals
markets are defined by strong job growth, low vacancy rates, and low
foreclosure inventory. In “booming” markets such as San
Francisco and Seattle,
rising asking prices are supported by strong job growth and are
unthreatened by future foreclosures. However, investor-fueled price
increases in “rebounding” markets like Phoenix
Vegas are at risk from slow job growth, high vacancies, or future
foreclosures. At the other end of the spectrum, healthy markets without
dramatic price gains, such as Houston,
will continue to hum along after avoiding the worst of the housing
bubble and bust. Meanwhile, markets like Chicago
continue to struggle without strong market fundamentals or big price
New Construction Eases Rent Gains Nationally
With more newly-constructed multi-unit buildings coming to completion,
rent gains fell behind asking price increases at the national level for
the first time since the price recovery began last spring. In January,
rents rose 4.1 percent Y-o-Y nationally, slowing down from 4.7 percent
in July 2012. Regionally, rent gains cooled the most in San
Francisco, where rents rose only 2.4 percent versus 11.5 percent in
July 2012. According to the Census, construction activity in San
Francisco has been well above normal for the last year, and it’s
nearly all in multi-unit buildings.
NOTE: Among largest 25 rental markets. All figures are rounded,
and differences (rightmost column) were calculated before
rounding, so some differences shown may not equal the difference
of the rounded values.
“In many local markets today, dramatic price gains can mask serious
red flags,” says Jed Kolko, Trulia’s Chief Economist. “Strong job
growth, low vacancy rate, and low foreclosure inventory–not huge price
gains–are signs of a healthy housing market. Without strong underlying
market fundamentals, price rebounds might be here today, but gone
“Rent gains are slowing down because of more supply, not less demand,”
explains Jed Kolko, Trulia’s Chief Economist. “Many of the multi-unit
buildings that have been under construction over the past two years
are now coming onto the market. Renters in San Francisco, Seattle, and
Denver are starting to get a touch of relief, even though rising
prices might put homeownership out of their reach.”
To read the full report, see here.
To download the full list of price and rent changes for the largest
metro areas, see here.
To download a graph of price changes from January 2011 to January
2013, see here.
To download a scatter plot graph contrasting price trends with the
market's health for the 100 largest metros, see here.
To view the full methodology and 2013 release schedule, see here.
The next release of the Trulia Price Monitor and the Trulia Rent Monitor
will be Tuesday, March 5, at 10 AM ET.
ABOUT TRULIA, INC.
TRLA) gives home buyers, sellers, owners, and renters the inside scoop on
properties, places, and real estate professionals. Trulia has unique
info on the areas people want to live that can't be found anywhere else:
users can learn about agents, neighborhoods, schools, crime,
commute times, and even ask the local
community questions. Real
estate professionals use Trulia to connect with millions of
transaction-ready buyers and sellers each month via our hyper local
advertising services, social recommendations, and top-rated mobile
real estate apps. Trulia is headquartered in downtown San Francisco.
Trulia is a registered trademark of Trulia, Inc.
Source: Trulia, Inc.
Daisy Kong, 415-400-7391