Median rental rates for houses in San Antonio are soaring. The median rental rate for a home in the San Antonio metropolitan area is $1,299, a 4.3 percent increase over this time last year.
“Rental appreciation has been a freight train these past few years, chugging along without any appreciable slowdown. Since 2000, rents have grown roughly twice as fast as wages, and you don’t have to be an economist to understand why that is hugely problematic,” said Zillow Chief Economist Dr. Stan Humphries.
“More than one-third of Americans are renters, and today’s renters are tomorrow’s buyers. For many current renters, buying a home could mean both a lower and more stable monthly payment, but rising and increasingly unaffordable rents make it difficult to save for a down payment on a home. The rental market used to be and should remain a stepping-stone to homeownership. But given how widespread rental affordability problems have become, the rental market could be acting more like a barrier to buying. More supply will help ease the crunch, both from new construction and as current renters transition into homeownership, creating more vacancies in existing developments. But neither will happen overnight.”
Nationally, home value growth continued to level off in January. The U.S. Zillow Home Value Indexv rose 0.2 percent from December and 5.4 percent year-over-year, to a median value of $178,500. Home values are expected to grow another 1.9 percent through January 2016, according to the Zillow Home Value Forecastvi. By the end of the year, Zillow expects growth in rents to outpace growth in home values.