People in hot markets such as Seattle, Denver, and the Bay Area will still see exorbitant rates, but elsewhere across the nation rent growth is expected to slow this year as more multifamily housing is built.
Amie Fisher of Zillow Porchlight offers five predictions for the housing and rental markets. Millennials are expected to buy homes, people young and old will flock to the suburbs, and interest rates will increase.
Low inventory and labor shortages will make new homes expensive.
The combination of rising wages and high land prices has led more builders to focus on the top-tier market — but those homes are out of reach for many first-time buyers. If there aren’t enough entry-level homes to purchase, those would-be buyers will continue to rent.
