Product Overview: Zillow Research
Zillow Research is a comprehensive platform provided by Zillow, designed to offer in-depth data and analytics on the real estate market. This tool is invaluable for potential buyers, sellers, renters, researchers, and industry professionals seeking detailed insights into the housing market.
Key Features
Data Coverage and Sources
Zillow Research aggregates data from a wide range of sources, including listings from its own platform, credit bureau TransUnion, the U.S. Census Bureau, the Freddie Mac Primary Mortgage Market Survey, and the Bureau of Labor Statistics’ Employment Cost Index. This diverse data pool enables Zillow to provide a more comprehensive and accurate picture of the housing market.
Home Value and Forecast Indices
The platform includes several key indices:
- Zillow Home Value Index (ZHVI): Measures the typical home value and market changes across different regions and housing types. It is available for various categories, including single-family residences, condos/coops, and homes with different numbers of bedrooms. The ZHVI is offered as both a smoothed, seasonally adjusted measure and a raw measure.
- Zillow Home Value Forecast (ZHVF): Provides month-ahead, quarter-ahead, and year-ahead forecasts of the ZHVI, utilizing the neural Zestimate for enhanced accuracy.
Rental Market Data
Zillow Research also offers detailed metrics on the rental market:
- Zillow Observed Rent Index (ZORI): A smoothed measure of the typical observed market rate rent across different regions, weighted to reflect the rental housing stock.
- Zillow Observed Renter Demand Index (ZORDI): Tracks engagement on Zillow’s rental listings to proxy changes in rental demand.
- Zillow Observed Rent Forecast (ZORF): Forecasts the ZORI for the upcoming month, quarter, and year.
Transaction and Sales Data
The platform provides insights into sales activity, including:
- Sales Count Nowcast: Estimates the number of home sales.
- Sale Price: Reports on the average sale prices.
- Total Transaction Value: Calculates the total value of all transactions. These metrics are updated monthly to reflect the latest data.
Advanced Analytics and AI-Powered Tools
Zillow Research leverages advanced analytics and AI:
- Neural Zestimate: An upgraded, AI-powered version of the Zestimate, which is Zillow’s proprietary automated valuation model. This model enhances the accuracy of home value estimates and forecasts.
- Multivariate Regression Analysis: Used to analyze the impact of various home features on sale prices and closing times, as seen in studies like the one on home features that influence sale prices.
Access and Collaboration
Zillow makes its data accessible to various stakeholders:
- Zillow Transaction and Assessment Database (ZTRAX): Available to academic, non-profit, and government researchers, providing a rich dataset for research purposes.
- User-Friendly Interface: The Zillow app and website offer intuitive search features, including natural language search capabilities, allowing users to find homes based on criteria like commute time, affordability, schools, and points of interest.
Functionality
- Data Analysis and Reporting: Users can access detailed reports and data visualizations on home values, rental rates, and sales transactions.
- Forecasting: The platform provides forecasts for home values and rental rates, helping users anticipate future market trends.
- Customizable Searches: With the AI-powered search feature, users can search for homes using everyday language, specifying details such as commute time, affordability, and nearby amenities.
- Research and Collaboration Tools: Researchers and analysts can utilize the ZTRAX database and other resources to conduct in-depth studies on the housing market.
In summary, Zillow Research is a powerful tool that combines extensive data collection, advanced analytics, and AI-driven features to provide a comprehensive understanding of the real estate market. It is designed to empower users with the information they need to make informed decisions in buying, selling, or renting properties.