Zillow: Low inventory squeezes Sacramento home affordability

A tepid housing supply has helped pushed Sacramento into the top 10 least-affordable major U.S. metro markets for renters and homeowners, according to Seattle-based real estate data tracker Zillow.

Zillow said only 159 new home permits were issued in 2012 and 2013 for every 1,000 new residents, which Zillow attributed in part to the building moratorium in Natomas. The lingering effects of those 2012-13 numbers are reflected in Zillow’s most recent report on Sacramento-area home values and rents.

Zillow said the February median home value in Sacramento area was $335,700, up 7.8 percent year-over-year. That far surpassed the national median of $178,700.

Sacramento also saw a year-over-year increase in the median rent for houses: $1,638 a month in February, up 4.9 percent over February 2014. Nationwide, the monthly rental median in February was $1,355, up 3.4 percent over the year-ago period.

Zillow said that Sacramento-area homeowners can expect to spend 26 percent of their monthly income on mortgage payments, and area renters can expected to spend about 33 percent of their income on rent.

This story was originally published April 2, 2015 at 10:05 AM with the headline "Zillow: Low inventory squeezes Sacramento home affordability."