Wealth, inequality and Housing Svenja Gudell, Ph.D., Chief Economist @SvenjaGudell

The median U.S. home value is almost back to all-time highs -22.6% Peak-to-trough -4.9% Peak-to-current +5.4% Year-over-year Source: Zillow Home Value Index (June 2016)

Home value growth in Portland, Denver and Dallas is the fastest in the U.S. Source: Zillow Home Value Index (June 2016)

Mortgage affordability

Nationwide, the share of income spent on a mortgage is well below historic norms Source: Zillow Mortgage Affordability, Rent Affordability (2016 Q1)

Mortgage interest rates are near all-time lows, a boon for potential home buyers Source: Freddie Mac: Primary Mortgage Market Survey (July 2016)

Housing starts have been on the rise, but remain well below pre-recession highs Source: U.S. Census Bureau, New Residential Construction

Year-over-Year Change Inventory shortages are particularly acute among homes in the bottom and middle thirds of the market U.S. Inventory Year-over-Year Change -8.3% Bottom Third -11.2% Middle Third -1.1% Top Third Source: Zillow For-Sale Inventory (Seasonally Adjusted, Smoothed (June 2016))

Median home values by market segment U.S. Home Values Source: Zillow Home Value Index (June 2016)

Tight inventory, particularly at the bottom, is helping push home values up faster at the bottom and middle U.S. Home Value Appreciation Source: Zillow Home Value Index (June 2016)

Income growth has been weak, especially for those making the least U.S. Household Income Source: Zillow analysis of U.S. Census Bureau ACS data, IPUMS

Weak income growth and rapid appreciation, even with very low mortgage interest rates, means homes are becoming more unaffordable, more quickly for bottom-third home buyers U.S. Mortgage Affordability Source: Zillow Mortgage Affordability Index (2015 Q2)

The difference in affordability is especially striking in expensive markets San Francisco Affordability Source: Zillow Mortgage Affordability, Rent Affordability (2016 Q1)

Year-over-Year Change Low inventory drives home value growth San Francisco Inventory Year-over-Year Change -0.8% Bottom Third +0.6% Middle Third +16.0% Top Third Source: Zillow For-Sale Inventory (Seasonally Adjusted, Smoothed (June 2016))

San Francisco Home Value Tiers San Francisco Home Values Source: Zillow Home Value Index (June 2016)

San Francisco bottom-third homes are appreciating fastest San Francisco Home Value Appreciation Source: Zillow Home Value Index (June 2016)

San Francisco bottom-third incomes have remained relatively flat while top-third incomes are growing steadily San Francisco Household Income Source: Zillow analysis of U.S. Census Bureau ACS data, IPUMS

Affordably buying a bottom-third home on a bottom-third income is incredibly difficult San Francisco Affordability Source: Zillow Mortgage Affordability (2015 Q2)

Rental Affordability

Nationwide, the share of income spent on rent is well above historic norms Source: Zillow Mortgage Affordability, Rent Affordability (2016 Q1)

Rents are growing fastest in Seattle and Portland Source: Zillow Rent Index (June 2016)

San Francisco rents continue to rise in both bottom-third and top-third tiers Source: Zillow Rent Index (June 2016)

Affordably renting a bottom-third home on a bottom-third income is virtually impossible San Francisco Rent Affordability Source: Zillow Rent Affordability (2015 Q2)

Wealth Inequality

Negative equity continues to decline nationally Source: Zillow Negative Equity (2016 Q1)

But homes in the bottom third remain disproportionately impacted by negative equity Middle Third Top Third Source: Zillow Negative Equity (2016 Q1)

Negative equity often leads to foreclosure Negative equity often leads to foreclosure. And entry-level homes were hit the hardest by the foreclosure crisis Bottom Third Middle Third Top Third Source: Zillow analysis of property-level Zestimates and the Zillow Home Value Index

Throughout the entire recovery, foreclosed homes showed greater annual appreciation than homes in general Source: Zillow analysis of property-level Zestimates and the Zillow Home Value Index

Job losses in manufacturing have stabilized, while the tech and healthcare industries continue to add jobs quickly Source: Zillow Analysis of U.S. Bureau of Labor Statistics: Current Employment Statistics (March 2016)

The best areas for social mobility for low-income children include the Bay Area, Southern California and the Northeast Source: Zillow analysis of data from the Equality of Opportunity Project (Chetty, Hendren, Kline and Saez, 2014)

But those areas are also areas where housing costs are highest Source: Zillow analysis of data from the Equality of Opportunity Project (Chetty, Hendren, Kline and Saez, 2014) and Zillow Home Value and Rent Indices

Higher housing costs means homes are less affordable in areas with the most social mobility for low-income children Source: Zillow analysis of data from the Equality of Opportunity Project (Chetty, Hendren, Kline and Saez, 2014) and Zillow Mortgage Affordability