The Zillow Rent Index in November 2017 was $1,435, up 2.4 percent from 2016, nearly matching the 2.5 percent annual income growth. This marked the second consecutive month in which rents and incomes grew at nearly the same rate.
The fastest rising rents are in Sacramento, California, Riverside, California, and Seattle, each with annual gains over 5 percent. Zillow reports that home values also continued to rise in November, gaining 6.7 percent year-over-year to a median home value of $205,100. This was the slowest rate of appreciation since November 2016.
The holidays mean it’s bonus time for many workers, and those extra dollars may be especially welcome for renters this season, as the pace of rent growth ticks up again. Rents remain at historical highs – the typical renter today pays a far greater share of her income on rent than she did historically – and their rate of growth is almost matching income growth for the first time since June 2016.
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