Rents fell in 16 major markets in March, leading to the biggestslowdown in 30 days since 2014. According to Zillow'sreal estate market report, the slowest rent growthwere in Baltimore, where it was only up .4% from last year, and NewYork, up 1.1% from last year.


Prior to the Coronavirus pandemic, rents were growing 3.4% yearover year in March. From March to April 2020, rent price growthslowed in 33 of the 35 largest U.S. cities, with the exception ofColumbus and Cleveland. The biggest rent decreases were seen inAustin, which fell 1.1%, Charlotte, which fell .7%, and Baltimoreand San Jose, which both decreased .6%.


"We're seeing rents slow now as some people are no doubtpursuing more-affordable options such as moving back in withparents, moving to a less-expensive area or doubling up ininstances where it can be done safely," Skylar Olsen, seniorprincipal economist at Zillow, said in a press release.


However, home sale prices stayed stable due to low inventory andfewer new listings. The average US home is worth about $250,000, anincrease of 4.3% last year. New for-sale listings are down 27.6%from last year, though they increased 12.5% since April. Buyerdemand for homes is still high as mortgage rates still hover arounda low 2.63%.


According to Zillow's forecast, home prices may fall2.7% by October. Zillow expects home prices to rebound in by thethird quarter of 2021. Zillow's forecast includes three scenarios,the most "pessimistic" scenario predicting that home prices maydrop up to four percent and remain low throughout next year. Themost "optimistic" scenario predicts home prices dropping only twopercent and recovering early next year.

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Pearl Wu

Pearl Wu is the editorial Recognition Desk Manager at ALM Media and oversees the administrative aspects of U.S. Legal awards. Please find our upcoming deadlines here.