The cost of housing increased in most major metropolitan areas during July, according to a report from the real estate firm Zillow.

Home values rose 6.5% in July compared to last year, to $174,800. Average rents increased 2.8%, to $1,318, over the same period.

"As rents keep rising, along with interest rates and home values, saving for a down payment and attaining homeownership becomes that much more difficult for millions of current renters," said Stan Humphries, the company's chief economist, in a press release Thursday.

Homeowners allocate approximately 15% of their incomes to mortgage payments, the report said.

Additionally, Zillow predicted that average home values are expected to increase 2.7% during the next 12-month period, to $179,489.

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