According to the new Zillow Rent Forecast, rent appreciation will level off over the next 12 months and slow to an annual rate of 1.1% by the end of the year. Zillow is forecasting a decrease in the rate of rental appreciation amid a so-called rental affordability crisis that suggests renters in some markets are spending about half of their income on rent.
Some takeaways:
- National median rent at the end of 2015 was $1,381, and is expected to increase slightly to $1,396 over the next 12 months.
- The slowdown in rents means that, by the end of the year, they will be rising at a slower pace than incomes in many markets.
- In December, home values rose 4 percent to a Zillow Home Value Index of $183,500.
