• In October, the Zillow Home Value Index (ZHVI) climbed 6.5 percent from the previous year, to a median national home value of $203,400.
• It was the 15^th consecutive month in which home values rose by at least 6 percent.
• The Zillow Rent Index climbing 2.2 percent to $1,432 a month.

In October, the Zillow Home Value Index (ZHVI) climbed 6.5 percent from the previous year, to a median national home value of $203,400. That makes the median U.S. home $12,500 more valuable in October than it was a year ago.

October was the 15^th consecutive month in which home values rose by at least 6 percent, which is double the roughly 3 percent annual rate of appreciation we might expect in a more “normal” market. The last time the market posted 3 percent annual growth was in January 2013, as values climbed slowly back from recession-era lows; a panel of real estate economists and experts say they expect the rate from January 2017 to December 2021 to average 3.4 percent.

Rapid growth is leading to some eye-popping gains, especially in pricier markets: The median home value in San Jose, Calif., climbed $118,200 in October from a year earlier, to $1.08 million.

But it’s lower valued homes that continue to grow in value the fastest. The median for homes valued in  the bottom third of all homes nationwide was worth $118,200 in October (coincidentally, the same amount that the typical home gained in value over the past year in San Jose), up 8.4 percent from a year earlier. By contrast, the typical home value in the top third rose 3.7 percent, to $358,900.

The rapid growth in value for lower-tier homes is partly a reflection of how few homes are available for sale, particularly at that end of the market. Of the 1.24 million homes for sale in October (seasonally adjusted), roughly 22.3 percent were valued in the bottom third of , compared to 26.3 percent in the middle third and 51.4 percent in the top third.

Inventory overall continues to shrink, with homes for sale posting double-digit declines since May. In October, it was down 11.6 percent from a year earlier.

A pick-up in rental growth that began in the spring continued in October, with the Zillow Rent Index climbing 2.2 percent to $1,432 a month. San Jose, Calif., has the highest median monthly rent, at $3,488, although rents in Sacramento, Calif., and Riverside, Calif., climbed faster (7 percent and 6.2 percent annually).