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Land costs are rising, and developers in many cities have still not been able to fetch high enough rent or condo prices to offset that expense.

Meanwhile, construction costs — particularly labor — remain expensive, as workers have not returned to the industry after leaving during the recession.

Home prices will rise 4.1 percent, Zillow predicted, based on more than 100 housing experts and economists surveyed, a slowdown from the current 6.9 percent price appreciation that homes nationwide saw this year.

The growth is not necessarily indicative of a dangerous bubble, the economists say.

Nearly half of millennials — now between the ages of 20 and 37 — live in suburbs, compared with a quarter of their generation that live in cities, according to Zillow.

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